Lack of rail rakes, higher diesel prices to weigh on cement margins

Analysts think cement prices are also expected to rise, relieving the stress at companies

Despite the projection of an increase in cement prices over the next few months, the profitability of producers might stay under stress, with diesel prices projected to remain firm and lack of railway rakes to carry the finished product. Also, higher cost.

According to ratings agency ICRA, diesel prices last month stood at Rs 61.8 a litre in Delhi. In the December quarter, it was about Rs 58 a litre.

"On a sequential basis, it is a three per cent increase, while on a year-on-year basis, the increase is seven per cent. Looking at the current trend, diesel prices will continue to