Cement Companies may post 17% profit growth

CementThe leading cement companies are expected to post a reasonable profit for the fourth quarter of the financial year. The four major cement companies of the country are expected to post a profit growth of 17% in this quarter.

These four companies are ACC, Ambuja Cements, Grasim Industries and UltraTech Cement. On a combined basis the year on year net sales of these companies is expected to go up by 6.3%. This has been reported by ETIG and by seven best broking houses in the country.

On an individual basis, Grasim Industries has the most striking report among these players. It has been the best performer in the forth quarter of the fiscal year 2010. As per sources, the VSF business of the company has helped it to have a hike in sales.

Apart from that, there was a huge increase in cement prices in northern and southern regions that pulled the revenue of the cement company up. However, the rise in operating cost has become a concern for these cement companies.