>CEMENT SECTOR Q2 FY10 RESULT PREVIEW (INDIA INFOLINE)

Domestic cement consumption has witness a ~13% yoy growth in Q2 FY09 despite a poor monsoon which did not have any visible impact on rural off take. Cement prices in the Northern , Eastern and Central regions have remained stable while those in th South and West fell by Rs2-15/ bag as frsh capacities commenced operations.

Our coverage companies are projected to show a mixed trend in revenue growth ranging from flat (ACC) to 23% yoy for Ultratech driven by volume growth of 19% yoy. Operating margin is likely to expand on account of lower coal cost and higher captive power utilization. Aggregate PAT should grow 17.8% yoy largely driven by strong performance from Ultratech and ACC.

To see full report: CEMENT SECTOR Q2 FY10