Q2 cement demand recovers, but lags in southern India

After a washout June quarter, cement demand in the September quarter revived in most regions. Checks conducted by brokerages show that cement demand improved in northern, central and eastern India. The south and some markets of western India were lagging. Improving labour availability and festival demand from individual home-builders are aiding demand growth. The demand in semi-rural and rural regions was better than in urban areas. Reportedly south-based companies, including Ramco Cement and India Cements would see steep volume declines in the September quarter. On the other hand, volumes of pan-India companies ACC, Ambuja Cements, and Ultratech Cements would grow in the 6-10% range year-on-year.