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Cement: Problems of excess in the South

Apr 9, 2010

Equityamster analyses the growth of cement industry in the southern region.

Prism Cement: A brief overview

Jul 16, 2008

Prism Cement, promoted by the Rajan Raheja Group (RRG) was initially incorporated under the name of Karan Cement Limited in March 1992 as a joint venture between Raheja group of Mumbai, F.L.Smidth & Co. A/s Denmark and Industrialization Fund for Developing Countries (IFU), Denmark.

JK Cement: A value creator?

Jan 2, 2008

In our previous articles, we looked at how did the company fare in terms of topline, bottomline and the cost control initiatives taken by the company. In this article, we will take a look at ratios.

JK Cement: Financial overview

Dec 31, 2007

In the previous articles, we made an attempt to portray JK Cement's journey and analysed it on the basis of five-force model of Michael Porter.

JK Cement: Look the 'Porter' way...

Dec 28, 2007

In the previous article, we gave an insight into the company's business and how it has evolved since inception. In this article, we shall profile the cement sector and JK Cement's standing within the industry by applying the Michael Porter's analysis.

JK Cement: A brief overview

Dec 27, 2007

Cement is a product of high volumes and therefore, transporting it over large distances can prove to be uneconomical. This makes it imperative for the plants to be located near markets. In some cases, the plants also tend to be located near the limestone reserves (a major raw material for cement) from where the cement is transported to nearby states.

Shree Cement: A brief overview

Sep 5, 2007

Shree Cement, promoted by the Bangur group is North India's largest cement producer with installed capacity of almost 4 MT. The company, apart from being an efficient cement manufacturer, is the market leader in the north, with a market share of 16% within the region.

India Cements: A brief overview!

Mar 5, 2007

India Cements is a southern player with an installed capacity of about 9 MTPA. The company enjoys approximately 20% market share and is the largest producer of cement in the South and a leading exporter. The company has access to huge limestone resources and plans to expand capacity by de-bottlenecking and optimisation of existing plants as well as by acquisitions. The company has 7 plants out of which 3 are in Tamilnadu and 4 in Andhra Pradesh. The company caters to all major markets in South I

ACC: It's a new beginning

Jan 28, 2005

ACC, the country's second largest cement manufacturer, announced its 3QFY05 results last week. While the topline witnessed a strong growth of over 25% YoY during 3QFY05, the bottomline improved by an impressive 138% YoY. This could be largely attributed to the company’s continued focus on cost reduction, bringing about operational efficiencies. To put things in perspective, operating margins improved significantly by 270 basis points during the said period.

ACC: What next?

Mar 29, 2004

While the cement industry continues to be in the throes of weak demand offtake, ACC, the second largest cement maker in the country, has had a comparatively better year so far. The company’s despatches for the first two months of the fourth quarter have grown by close to 17% on a YoY basis. Cumulatively also, the despatches have been decent, growing by 11% YoY for the period April-Feb’04. Besides, the company has also raised US$ 100 m recently - US$ 60 m were raised by selling foreign currency c

Grasim: Cement to take charge...

Jan 7, 2004

Although 2003 was a rather lacklustre year for the Indian cement industry, Grasim, India's largest cement producer did little to disappoint investors. Riding on the back of CemCo (L&T Cement) acquisition, which has put the company into the elite league of the world’s largest cement producers, the stock price of the company has almost tripled in 2003.

ACC: Sensible acquisition...

Dec 31, 2003

Earlier this year, when Grasim acquired L&T’s cement division (Cemco), industry watchers were visibly thrilled as they felt that the move would bring in much needed consolidation for the industry. However, they also opined that the purpose of consolidation would have been better served had Grasim acquired few smaller companies rather than Cemco, which is the largest cement company in the country. What lends credence to the industry watchers’ remarks is the table given below.

Cement: Lacklustre year but...

Dec 24, 2003

Indian cement industry, the second largest in the world after China with capacity in excess of 140 m tonnes, is touted as one of the key beneficiaries of the Indian growth story. The sector has grown consistently at a CAGR of 8%-9% in the last decade and FY03 was assumed to be no different.

India Cements Vs Madras Cements

Sep 19, 2003

Of all the regions that the Indian cement industry is divided into, the southern region hogged the maximum limelight in FY03, unfortunately for all the wrong reasons. With capacity exceeding demand by estimated 11 million tonnes (MT), cement prices fell by average 14% in FY03 thus affecting profitability of all the players in the region. Against this backdrop, let us throw some light on the performance of two of the major cement companies in the south viz. India cements and Madras cements (who c

India Cements: Prices hold the key

Sep 9, 2003

Poor realisations in the southern markets have affected most players adversely. The worst hit have been those players who have remained focused on the southern markets and have barely expanded their reach. India cements is one such player and in this article we will try to analyse the company’s performance in recent times and study its future prospects.

India Cements: Restructuring awaited

Jul 3, 2003

India Cements, the troubled south Indian cement producer, has reported another year of disappointing results. The company has reported a net loss of Rs 2 bn on the back of a significant 16% fall in topline. A drastic fall in realisations as well as a considerable rise in interest expenses has taken a toll on both the topline as well as the bottomline of the company in FY03. In fact, the company's losses have been mitigated to a certain extent by the tax writeback. Not accounting for the writebac

India Cements: Catch 22 situation

Feb 17, 2003

India Cements, the largest cement producer in the Southern India, has reported another quarter of huge losses. On a YoY basis, the company has reported a 19% decline in its topline while net losses have risen almost five fold in 9mFY03. Results for 3QFY03 were better than its 2QFY03 performance (25% topline decline YoY). However, this was of little consolation as in 3QFY03 topline dipped by 10% YoY and net losses almost doubled. Had it not been for a deferred tax credit of Rs 275 m during the qu

India Cements: Red everywhere

Dec 2, 2002

India Cements, the largest cement producer in the Southern region, has reported huge losses in 1HFY03. On a YoY basis, the company has reported a 23% decline in its topline while net losses have almost quadrupled in 1HFY03. The results for 2QFY03 is even worser, but what is more disturbing is that the company has shown losses at the operating level itself. The operating margin of the company stood at -5% in 2QYF03.

India Cements: Losses escalate

Jul 30, 2002

India Cements, the largest producer of cement in the southern region has reported disappointing results for 1QFY03. The company has reported a net loss for the first quarter of the current year compared to a profit in the comparable period last year. Total revenues of the company have also dropped by 21% on a YoY basis

India Cements: Saved by Shri Vishnu

Jul 1, 2002

India Cements, one of the largest cement producers in the south, has announced disappointing results for FY02. The company reported a 19% fall in its topline, while its net profit fell by a considerable 102%. The bottomline was rescued from a further slide by an extraordinary income of Rs 1.2 bn by way of profits from the sale of its stake in Shri Vishnu Cements to Zuari Cement Limited.

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