INSUBCONTINENT EXCLUSIVE:
A pick-up in infrastructure and construction jobs has resulted in cement sales volumes growing in strong double digits over past few
quarters and momentum is likely to continue ahead of Lok Sabha elections.
Typically, cement growth spikes in elections years, and experts
believe that 2019 will be a strong year for construction as elections are likely to be held in May 2019 and states, such as Andhra Pradesh
and Maharashtra, too might hold elections.
Despite a potential slowdown in tendering and ordering activities, project execution is seen
Industry feedback indicates FY19 growth has primarily come from government-led infrastructure and a boost from pre-election spending (states
Across regions, South and East have witnessed strong growth, while west faces challenges
month, as against a 0.5 per cent growth in benchmark index Sensex
During this period, J K Lakshmi Cement was top gainer, with share prices increasing over 18 per cent
Cement prices have largely been steady
We expect revenue to grow 13 per cent and EBITDA 5 per cent, though profit after tax would contract 27 per cent year-on-year
brokerage also said that it expects around 90 million tonne capacity to be added over FY19-22 and demand would clock a 7-8 per cent
compounded annual growth rate, which could lead to a better pricing scenario as supply pressures eases.
As country gets into election mode,
order tendering by government will slow down
infrastructure sector expects construction activities to pick up from FY20, led by a favorable operating environment and various government
