UltraTech, ACC, Shree Cement see volume growth despite cost pressure

Higher sales volume and realisations did well to overcome cost pressure

Despite cost pressure and absence of significant uptick in realisations, top cement companies ACC, UltraTech Cement and Shree Cement reported decent performance for the March quarter.

Although rising petroleum coke (petcoke) prices are putting pressure on fuel and transportation costs, strong volume growth and some surprise on realisations were key drivers. Moving forward, while improvement in realisation will play a key role in tiding over rising cost, the latest results do instill confidence. Improving infrastructure and housing demand is likely to benefit sales and push realisations, say analysts, many of whom are positive on cement companies.

Beat expectations

Shree Cement,