Goldman Sachs: worst is behind India’s building sector
Goldman Sachs says the worst is behind India’s construction and cement sectors. "We believe capacity utilisation has bottomed in fiscal 3Q11 and will see a gradual improvement to 77% and 80% in FY12 and FY13 (versus 76% in FY11E) as we expect capacity addition to slow down," the house says in a report.
It adds that it expects stronger consumption in FY12E (+10% YoY), driven by increased public spending before state elections, improved execution and pent up real-estate demand.
The house also expects pricing to remain robust (+3% to +4% in FY12), led by supplier discipline as cement production is cut. Published under Cement News
