Why South India's cement firms could see a sharp improvement in earnings

If demand continues to keep up momentum, the cement industry in the South hopes for better growth in the near future

Cement companies in the south are expected to outperform in the short-run as prices in the region have improved by Rs 30-70 a bag. If prices remain high, these firms would see an improvement in earnings, said an Elara capital research report. 

Cement prices in Hyderabad alone rose 28 per cent by Rs 60-70 a bag in the past few weeks. If current prices are to sustain, then South-based firms, such as Orient Cement, India Cements, Ramco Cement and Sagar Cement would see a sharp improvement in earnings in the range of 65-147 per cent  on year over the next few