UltraTech Cement, Ambuja Cements, Shree Cement, JK Cement, Dalmia Bharat, India Cements, ACC, and Ramco Cements gained in the range of 2 per cent to 4 per cent on the BSE. In comparison, the S&P BSE Sensex was up 1.09 per cent at 60,616 points at 12:45 PM.
"Given the government's focus on infrastructure spending and affordable housing, the cement sector's long-term growth potential continues to remain healthy. Demand revival is imminent, especially during the festive season, and the January-March peak construction period," UltraTech Cement said post its Q2 results announcement.
Upon completion of the latest round of expansion, the Company's capacity will grow to 159.25 mtpa, reinforcing its position as the third largest cement company in the world, outside of China, the company said.
Meanwhile, ccording to the management of Ambuja Cements, the cement industry has been facing significant margin pressure due to steep rise in global energy prices. However, recent cooling off in energy prices, and post monsoon demand pick up appears like silver lining for coming quarters.
Analyst at Centrum Broking expect cement prices to stabilise, and benefits of lower fuel cost will start occurring from October-December quarter (Q3FY23).
Moreover, analysts at Emkay Global Financial Services believe that operating costs should peak in Q2FY23, and could decline in the coming quarters, with international petcoke prices down around 35 per cent from the peak to $180/ton.
"The dip in fuel prices is expected to provide cost savings of at least Rs 200/ton from Q3, in our view," the brokerage firm said in sector update.
Industry profitability is likely to be weak in Q2FY23 owing to high-cost fuel inventory and monsoon-led seasonality. However, the brokerage firm expects industry margin to bottom out in Q2, with peaking of cost, higher exit of cement prices, and pick-up in construction activity in coming quarters.
To read the full story, Subscribe Now at just Rs 249 a month
Already a subscriber? Log in
Subscribe To BS Premium
₹249
Renews automatically
₹1699₹1999
Opt for auto renewal and save Rs. 300 Renews automatically
₹1999
What you get on BS Premium?
- Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
- Pick your 5 favourite companies, get a daily email with all news updates on them.
- Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
- Preferential invites to Business Standard events.
- Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.
Need More Information - write to us at assist@bsmail.in