UltraTech, Ambuja Cement post robust sales in May

Byyyp

Updated 2012-06-06

Microsec has come out with its report on cement space. Robust sales from India’s two largest cement makers, Aditya Birla Group’s UltraTech and Swiss major, Holcim’s Ambuja Cements, in May are likely to bring the industry back on a double-digit growth trajectory after a gap of two months.

Robust sales from India’s two largest cement makers, Aditya Birla Group’s UltraTech and Swiss major, Holcim’s Ambuja Cements , in May are likely to bring the industry back on a double-digit growth trajectory after a gap of two months. Amid India’s disappointing GDP growth of 5.3 per cent for the March quarter, strong dispatches of the building material, just before the start of the monsoon, has raised hope for better growth of cement industry in 2012-13. Ambuja Cement, which has a capacity of 25 million tonnes per annum, sold 1.935 million tonnes in May, against 1.729 million tonnes in the corresponding month last year, a rise of 11.91%.

On the other hand, its peer, UltraTech Cement, registered sales growth of 10.57%. However, Ambuja’s sister concern, ACC, could not match up with the other key producers and reported a growth of 3.02%, as it sold 2.050 million tonnes, against 1.990 million tonnes in the year-ago period. UltraTech Cement, ACC and Amubja Cements, collectively control close to one-third of the country’s cement market, which has an overall capacity of 330 million tonnes per annum. A decline in cement prices was witnessed during May. The all-India average price for a 50-kg bag stood at Rs 290, against Rs 307 in March, a fall of 5.53%.

Updates on cement companies:

During May, 2012, UltraTech Cement’s (Aditya Birla Group Company) production stood at 3.502 million tonnes, growing by 7.69% on YoY basis and 6.35% on MoM basis. Dispatches stood at 3.587 million tonnes, growing by 10.57% on YoY basis and 12.10% on MoM basis. For the period, January- May of 2012, UltraTech’s production and dispatches were 17.955 million tonnes and 18.036 million tonnes respectively, against 16.971 million tonnes and 16.887 million tonnes during the same period of the corresponding year.

Ambuja Cement registered a growth of 8.76% on YoY basis in its production to 1.888 million tonnes for May, 2012. The company’s dispatches also grew by 11.91% to 1.935 million. The company’s production decreased by 1.15% and dispatches increased by 4.26% on MoM basis. Cumulative dispatches of the company during the period, January ��"May of 2012, increased by 8.54%% to 9.885 million tonnes against 9.107 million tonnes, during the corresponding period, a year ago.

ACC registered an increase in sales for the month of May, 2012 by 3.02% to 2.050 million tonnes. The company had sold 1.990 million tonnes cement in the same month of last year. Production rose to 2.020 million tonnes as compared to 2.010 million tonnes in the corresponding month of last year. On MoM basis, the company’s production and dispatches both declined by 6.91% and 0.97% respectively. ACC's cumulative sales during the period, January- May of 2012 stood at 10.830 million tonnes over 10.260 million tonnes in the same period of last year. Production also increased to 10.890 millions tonnes against 10.290 million tonne.

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