Indian Cement Industry: No reason for immediate corrections

With the ongoing monsoon season, the cracks in the cement industry in India are wide open and understandably so. Companies do expect the fall in sales as the construction takes a back seat and even at times gets stalled. There is already a decline of 3%-4% in the first quarter. The slowdown is not only attributed to monsoons but even the General Elections in the country were one of the main reasons why there has been a dip in the sales graph of the cement industry. With the festivities starting to begin in the country, the sector may witness the recovery mode in the second half of the financial year.

Among other sectors like BFSI or Automobiles, Cement is comparatively well placed giving it a sigh of relief. While the Government of India has announced a stimulus package for various other sectors, we can expect the economy to be on the revival path and hence can further up the cement sales too.