May cement despatches flat

Despatches of the country's three large cement producers, The Associated Cement Companies, Gujarat Ambuja Cements and UltraTech Cemco, remained flat in May compared with the year-ago period.

Analysts said, "The growth in May has been marginal owing to a very high base. Last year, the transporters' strike in April had led to high despatches in May."

While ACC's despatches in May stood at 14.07 lakh tonne, an increase of 2 per cent, compared with 13.79 lakh tonne in the corresponding period of the previous year, production for the month showed a similar growth rate at 13.97 lakh tonne against 13.67 lakh tonne in the corresponding month in the previous year.

Meanwhile, L&T despatches declined 4.55 per cent at 10.3 lakh tonne in May against 10.8 lakh tonne in the corresponding period of the previous year.

Analysts said demand in Gujarat has softened slightly in May and since L&T has a large presence in the state, it has impacted its despatches slightly.

L&T's total despatches, including exports also declined 1.36 per cent, at 10.9 lakh tonne over the previous year.

Gujarat Ambuja Cement too saw flat monthly despatches at 12.3 lakh tonne. The company produced 12.3 lakh tonne of cement in the month against 12.1 lakh tonne in the corresponding period of the previous year, reflecting a rise of 2 per cent.