Earnings diverge

Compared to the first quarter of the fiscal year, the second quarter for the cement industry paints a less rosier picture even though sequentially, demand grew in 2Q. However, year on year, demand creeped owing to a marked slow down in exports. As a result, 11 out of 16 listed companies cumulatively reported only a marginal increase in revenue, resulting in a 5 percent increase in earnings after tax. In Q1, the earnings growth was 86% year on year due to strong topline growth and other income significantly buttressing the bottom-line.