The domestic cement industry is once again on track for achieving a double-digit growth rate in January. Statistics from top cement makers suggest the industry is likely to repeat its December performance when growth inched closer to 11 per cent.
Major industry players like Jaiprakash Associates, Shree Cement and JK Lakshmi Cement continued with their robust sales during the month as demand remained strong. The north-central cement maker Jaiprakash Associates, for instance, sold 60 per cent more of the building commodity at 1.16 million tonnes. During the same month last year, sales stood at 0.72 million tonnes.
Likewise, JK Lakshmi despatched 38 per cent more cement in January followed by Shree Cement with a despatch growth of 17.76 per cent.
| CEMENTING BUSINESS Cement makers’ despatches in January and stocks performance | |||
| Company | Despatches** | Change % (YoY) | Closing stock price* |
| ACC | 1.91 | 1.06 | 873.20(0.28%) |
| Ambuja | 1.74 | 7.5 | 101.20(-1.08%) |
| JP Associates | 1.16 | 60.25 | 140.60(2.11%) |
| JK Lakshmi | 0.50 | 38.25 | 70.45(3.99%) |
| Shree Cement | 0.88 | 17.76 | 1,993(0.47%) |
| UltraTech | NA | NA | 932.90(0.38%) |
| Grasim | NA | NA | 2,674.45(3.1%) |
| *Bombay Stock Exchange; ** Million tonnes; Source: Companies | |||
Holcim group’s companies Ambuja Cements and ACC, however, continued to lag in terms of growth as capacity constraints did not let the cement giants come up with impressive growth numbers. Ambuja sold 7.5 per cent more cement at 1.74 million tonnes.
Its sister company ACC managed a growth of only 1.06 per cent in despatches at 1.91 million tonnes against 1.89 million tonnes last year. ACC had recently added to its capacity in the last one-and-a-half-month. This will help the company make a come-back in growth in the coming quarters, once the new capacities stabilise.
Birla group companies UltraTech and Grasim Industries did not release their despatch numbers today.
On the Bombay Stock Exchange, the cement stocks closed firm, except for Ambuja. The ACC stock gained 0.28 per cent at Rs 873.20, whereas Shree Cement gained 0.47 per cent at Rs 1,993. The JK Lakshmi stock gained 3.99 per cent at Rs 70.45 and Jaiprakash Associates gained 2.11 per cent at Rs 140.60 by close of Monday’s trade on the BSE.