Strong pricing of cement to push up earnings

Strong earnings growth for cement sector is expected to drive stock performance, hereon, according to Motilal Oswal’s research report. 1QFY13 numbers decipher more positives, no negatives. The cement majors have re­ported strong numbers for 1QFY13 (EBITDA 9-18 per cent ahead of estimates), amidst a mixed bag of expectations, improvement in operations coupled with regulatory concerns post the adverse verdict by the Competition Commission of India. The robust performance is attributable to a strong quarter-on-quarter improvement in realisations, in-line volumes and cost push.