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Indian cement companies Q2 profitability to surge on strong volumes

Analysts predict that domestic cement producers in India will see a significant boost in earnings for the September quarter, driven by strong year-on-year volume growth and lower power and fuel costs. The industry s average profitability is expected to surge by at least 50% compared to the previous year, with ACC and Ambuja Cements predicted to have the best improvement. Spending by key states ahead of elections and robust demand for cement are also contributing factors. However, the recent surge in fuel prices may put pressure on profitability.

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