Steel, cement, hotel and IT sectors to perform better in Q4

Steel, cement, hotel and IT sectors to perform better in Q4

By agencies   |   Wednesday, 30 March 2005, 08:00 Hrs
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NEW DELHI:Steel, hotel, cement and IT sectors will continue to be top performers in the fourth quarter of the current fiscal year, an Assocham study said.

These sectors are likely to outperform others, both in terms of net profit and sales in their annual results, which will start coming along with their Q4 results next month, Assocham Eco Pulse said.

The top 10 companies in each of these sectors covered by AEP had shown impressive net profit growth ranging between 49 and 128 percent in Q3 of fiscal year 2004-05.

According to the AEP-Q4 projection study, robust demand, cost efficiency in operations, higher margins and increased offshore business were the prime reasons for bullish phase in these sectors.

While steel companies would increase profits on the back of rising prices, hotel industry, which saw its Q3 net profit soaring by 110 per cent on the back of strong inbound traffic of 3.3 million, was likely to reap more gains in the last quarter despite the adverse impact of tsunami, AEP-Q4 Projection Study said.

The study has also provided a ray of hope to the FMCG sector, which, it said, would grow due to pick-up in rural income and slowdown in the price war among large companies.

Increase in offshore client base, the study said, will give a boost to the IT sector despite the negative impact of an appreciating rupee.

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