Net profit
Q207
Q206
% Chg
Q207
Q206
% Chg
"South-based Madras Cement is expected to post 63% rise in sales and 400% growth in net profit. India Cement is expected to continue its upward march in Q2FY07 with sales growth of 27% and net profit at Rs 95 crore as compared to Rs 6 crore in Q2FY06. JK Cement and Shree Cement are expected to report over 100% growth in Q2FY07 net profit.
"Cement consumption in the southern region has maintained a very healthy growth rate of 20%. Further, the sales tax rate in Tamil Nadu has been reduced from an average rate of 23.5% to 14.5%, and the cement players have not passed on this benefit to the consumer.
"On the cost front, power and fuel costs should largely remain stable on a Y-o-Y basis or could even come down for some players on account of the continuous slide in coal prices. However, freight cost, even though stable on Q/Q basis, will be up around 20-25% YoY because of the Supreme Court ban on the overloading of trucks and a rise in the prices of diesel," the report said.
