Growth despite the hitches

In Focus/Cement

 Good monsoons have upset despatch growth rhythm. Above average rainfall in 28 per cent of monsoon districts and normal to excess rainfall in about 81 per cent of the monsoon districts dampened despatch growth in the month of July.

 However, companies catering to south and east reported better volume growth. The south typically receives rainfall after September.

 ACC reported the maximum growth of 10.7 per cent year-over-year (YoY) due to its high exposure in south and east.

 Despite flooding in parts of Maharashtra, Punjab, Gujarat and Rajasthan, GACL reported 8 per cent YoY growth in despatches. Surprisingly, exports also surged 40 per cent YoY.

 Grasim continued to report modest growth, as de-bottlenecking in Rajashree plant in Karnataka was yet to be completed.

 L&T reported a 10 per cent YoY decline in domestic despatches as it was optimising margins through a marketing trade-off between better net realisation through lower output vis-