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.
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