ACC, Ambuja and Shree Cement likely to see volume decline of 4-13%

Having witnessed a strong demand environment during H2FY18 till FY19, domestic cement firms are likely to report subdued sales volume in Q1FY20

Cement companies are facing a slowdown in demand, with volumes growing at the slowest pace in six quarters. This comes even as realisations and lower costs have provided some comfort. Demand, which had remained strong in March, has slipped since, in what is usually a good season.

The slack demand led to a roll-back in price hikes taken by manufacturers in May and June. There might not be much respite, given the ongoing monsoon, during which activity slows down. Therefore, the stocks of pan-India players UltraTech and ACC have seen corrections from their highs in May. Even regional players like Ambuja