New Delhi, Nov 22
ESCALATION in energy prices and higher wage bill have hit the operating margins of cement units in the second quarter of the current fiscal. However, the companies were cushioned against losses to some extent by the increase in sales and realisations during the period, according to the findings of an Assocham Eco Pulse Sectoral Analysis conducted recently.
Raw material cost increased by over eight per cent and wage bill by 13.65 per cent during the period, an analysis of the top 10 cement firms showed. There was a decline in operating profit margin by an average of 18.94 per cent.
The period also saw sales rising 10.79 per cent to Rs 5,391 crore. Both domestic and export demand reported growth. Export prices have firmed up as well, says the analysis.