UltraTech Cement was trading higher by an over 1% at Rs 3,559 on the BSE after the company reported a strong operational performance in Q1FY17. The company said Ebitda (earnings before interest, taxes, depreciation and amortisation) of Rs 1,573 crore for Indian operations, up 24% year-on-year, on account of higher sales volume and lower cost.
Analysts at Karvy Stock Broking expects aggregate revenues of 10 cement companies to increase by around 9% YoY, primarily led by around 10% volume growth as the average realisation has been flattish.
The brokerage firm maintain positive stance on cement sector as it believe that improvement in utilisations (led by demand pick-up & slowdown in supply additions) would help in pricing power.
“Going ahead, we expect the demand to pick-up during FY17-18E led by increase in government capex towards infrastructure (mainly Roads/Highways and Urban Infra) and pick-up in rural housing sector,” Karvy Stock Broking said in a Q1 results preview.
Ambuja Cements, Dalmia Bharat, HeidelbergCement India, J K Lakshmi Cement and Shree Cement were trading at their fresh 52-week highs on the BSE.