Cement firms were strategically trying to pocket GST benefit meant for consumers: Yes Securities
New Delhi [India]September 27 (Memorial): Cement companies strategically tried to pocket the aim of the GST for consumers.
In the report, the government’s decision to reduce the GST in cement from 28 percent to 18 percent after September 22 on the consumer level to reduce a significant price to reduce high expectations, he said.
However, channel controls revealed that all India average cement prices have just fallen. LaA 5 -month month per bag and quarter of a quarter.
With the rate cut applied at the end of the month, companies adopted an average pricing approach mainly; However, silent price correction proposes limited transition because manufacturers maintain a significant portion of the tax advantage to protect margins in the midst of monsoon cuts and repressed demand.
“According to our channel controls, the average prices of all India fell on both mother and QOQ basis RS5/bag. Effectively, companies strategically tried to take the GST benefit for consumers. However, the net impact was relatively silent compared to its original benefit.”
In front of the GST ratio in the cement, companies tried a price increase from the last week of August to the second week of September. A few pockets were able to apply 10-15/bag hikes, except Hyderabad, where prices rose to 30 RS/bags in the first week of August in the last week of August.
In general, effective price increase on 1-21 September La10/Bag in some states in East and west regions.
The report said in the report, “The companies receiving price increased before the GST were able to transfer to consumers, while others remained at the base price with 18 percent GST.”
On the basis of QOQ, the average prices of allindia decreased by 1.3 percent, a large decrease in the southern region (2 percent), followed by the West (1.5 percent), East (1.3 percent) and central (1.2 percent) regions, the Whilepric in the northern region remained properly.
“We also believe that it is unlikely that no price increase will be realized in the next two months. However, our channel controls show that companies can try a walk after Diwali.”
According to the report, on the request front, the second quarter of the 2026 financial year, when the festival season was combined with the festival season, religious beliefs, sand mining problems and some states were under water due to continuous rain of heavy rain. (MOMENT)
