Hike in cement prices improves profit margins

Three out of the four top cement companies in the country, which have so far reported results for the March 2012 quarter, have recorded higher operating profit margins year-on-year. At Rs 320, the all-India average cement price was higher by Rs 40 a bag over last year. This was Rs 20-25 higher over the preceding December 2011 quarter. For the top players, net profit grew in the range of 10-19 per cent year-on-year. Profits were helped by growth in despatches as well as better realisations. The former’s growth for the industry was recorded at 9.5 per cent year-on-year.