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Cement shares fall after freight rate hike
June 23, 2014 / 5:03 AM / 3 years ago

Cement shares fall after freight rate hike

Reuters Market Eye - Cement manufacturers’ shares fall after the government on Friday pushed through a steep 6.5 percent hike in rail freight effective June 25.

A labourer unloads cement sacks from the wagon of a train at a yard in Kolkata June 25, 2012. REUTERS/Rupak De Chowdhuri/Files

ACC (ACC.NS) falls 0.2 percent, UltraTech Cement (ULTC.NS) down 0.4 percent while Ambuja Cements (ABUJ.NS) falls 0.6 percent.

The cement industry transports nearly a third of its production through railways, and freight forms about a fourth of its operating expenses, investors say.

The cement players would not be able to pass on the hike in freight rates to customers at least during monsoon due to weak demand, investors add.

Reporting by Abhishek Vishnoi

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