Rail freight hike may impact cement margins: India Ratings

Written By Unknown on Rabu, 27 Februari 2013 | 20.07

According to India Ratings, the proposed 5.79% increase in rail freight as per the Railway Budget 2013-2014 may negatively impact the margins of the cement industry. In the event cement manufacturers are unable to pass on the rail freight cost hike, their operating margins may reduce by 75bps-100bps.

The cement manufacturers of South India will be particularly affected, given the unfavorable demand-supply situation may not be in a position to pass on the increased cost. However, cement players based in the rest of India would be able to pass on a significant portion of the cost increase.

The railway freight hike may potentially increase the cement price by INR2 to INR4 per bag.

Around 50%-60% of the freight expense of a typical cement company is related rail freight. This is essentially 15%-18% of total costs. Around 10.5%-11.0% of rail freight (by volume) is attributable to the cement industry. This is second only to coal which accounts for 45%-47% of the rail freight.

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.



Anda sedang membaca artikel tentang

Rail freight hike may impact cement margins: India Ratings

Dengan url

http://harmonisem.blogspot.com/2013/02/rail-freight-hike-may-impact-cement.html

Anda boleh menyebar luaskannya atau mengcopy paste-nya

Rail freight hike may impact cement margins: India Ratings

namun jangan lupa untuk meletakkan link

Rail freight hike may impact cement margins: India Ratings

sebagai sumbernya

0 komentar:

Posting Komentar

techieblogger.com Techie Blogger Techie Blogger