The Hindu Business Line : Weak monsoon boosts cement sales in July

Mumbai, Aug. 5 The weak monsoon has come as a shot-in-the-arm for cement companies with most of them registering a rise in July despatches, compared to the same month last year. However, on a sequential basis, some, such as UltraTech Cement, Grasim Industries and Ambuja Cement, showed a fall.

Holcim Group companies ACC and Ambuja Cement saw a 4 per cent rise in despatches at 1.78 million tonnes (mt) and 1.44 mt respectively in July. Both reported a production rise of 3 per cent each.

Cement despatches and production at the Aditya Birla group (UltraTech and Grasim) were up 10 per cent at 2.70 mt and 2.75 mt.

Jaiprakash Associates, a prominent player in the north, recorded a 42 per cent rise in despatches at 7.73 lakh tonnes. Shree Cement sales rose a percentage point more (43 per cent) to 8.30 lakh tonnes, while JK Lakshmi Cement’s despatches were up 6 per cent at 3.20 lakh tonnes.

The northern and central region continued to remain the demand driver compared to other parts of the country, said an analyst.

On a sequential basis (July-June), though, UltraTech and Grasim despatches were down 12 per cent, while production slipped 10 per cent. Ambuja Cement sales and output were down 9 per cent and 10 per cent respectively.

Grasim added 2.9 million tonnes per annum (mtpa), including 1.6 mtpa at Aditya Cement at Shambhupura in Rajasthan and a 1.3 mtpa split grinding unit at Aligarh in Uttar Pradesh in the first quarter of this fiscal. UltraTech commissioned an additional 1.2 mtpa at its Andhra Pradesh Cement Works during the period.

On Wednesday, Grasim shares on the BSE were up 2 per cent at Rs 2,829; ACC 3 per cent at Rs 925; and Ambuja Cement 1 per cent at Rs 111. UltraTech was down 1 per cent at Rs 797.

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