Sustaining prices crucial for cement companies

Cement makers have made smart gains on the bourses from their lows earlier in the year. While substantial price hikes in southern India has led to Ramco Cements, India Cements, and Orient Cement gaining 32-46 per cent on the bourses, players with a pan-India presence such as UltraTech and ACC, too, have risen 23-26 per cent. Led by robust demand, strong volume growth continues across regions. This, coupled with improvement in realisations (0-4 per cent sequentially) and the softening of raw material prices, is expected to drive Q4 profitability for most producers.