Nomura expects Indian demand recovery in FY16

Nomura expects Indian cement companies to see demand recover in the current fiscal year, after a weak ending to fiscal 2015 in March.

The broker expects Indian cement companies' revenues and operating profit to stay flat for the January-March period, owing to falling volumes. Cement volumes fell by about five per cent YoY during that period – the weakest in any quarter in the past couple of years, says the broker.

However, going into fiscal 2016, which began in April, Nomura expects cement demand to recover on the government's higher spending on infrastructure projects, with cement volume growth expected at about 7.8 per cent YoY. (Source: Dow Jones)