Cement and clinker volumes declined five per cent YoY with the increase in competition in the northern region, and sluggish demand. IINS expect the next two quarters to be challenging, as more production capacity from competitors stabilises and demand in the northern region is likely to remain sluggish.
Furthermore, with petcoke prices continuing to increase, IINS expect power and fuel cost to increase. IINS cut its FY11 EBIDTA estimate by 15 per cent.
