Lower realisation and weaker pricing power will hurt profitability of cement manufacturers in FY25: CRISIL
1 week, 2 days ago

Lower realisation and weaker pricing power will hurt profitability of cement manufacturers in FY25: CRISIL

Live Mint  

New Delhi, December 31 : Cement manufacturers are facing a challenging fiscal year as operating margins are expected to shrink by 170-220 basis points, settling at 15-16 per cent for FY2025, according to a CRISIL report. Demand for cement, which had recorded a robust compound annual growth rate of 11 per cent between FY2022 and FY2024, is projected to slow to 4.5-5.5 per cent this fiscal. In the southern region, prices are projected to decline by 5-6 per cent following a 4 per cent dip last fiscal, primarily due to subdued demand and increased capacity growth. The western region is forecast to see a 3.5-4.5 per cent decline, while the central region is expected to experience a more modest drop of 2-3 per cent, given limited capacity additions.

Prices Input Costs Demand Decline Cent Expected Fiscal Weaker Pricing Power Subdued Demand Hurt Profitability  manufacturers  subdued  pricing  expected  power  realisation  capacity  hurt  profitability  projected  fiscal  crisil  region  lower  cent  demand  weaker  decline  prices  fy25

History of this topic

Beware the excitement on cement price hike
1 week, 3 days ago

Beware the excitement on cement price hike

Live Mint  

For the cement sector, two themes played out in 2024 – rising consolidation and weakening prices. At the forefront of inorganic expansions were Aditya Birla Group UltraTech Cement Ltd and Adani Group's Ambuja Cements Ltd who acquired smaller companies to aggressively boost market share and meet capacity expansion targets. A dealers’ channel check by Yes Securities Ltd showed that as …

Cement Prices Dip 6% in Q4 FY24, Boosting Sales
8 months, 2 weeks ago

Cement Prices Dip 6% in Q4 FY24, Boosting Sales

Deccan Chronicle  

Chennai: Cement prices were down 6 per cent sequentially in the fourth quarter of FY24. A 6 per cent sequential decline in cement prices to Rs 370-375 on average per 50 kg bag was seen in the fourth quarter, with exit prices in March at Rs 360-362 per bag. Thus, at the overall level, cement prices have been subdued, declining …

Chart Beat: Tough March quarter for cement companies?
10 months, 4 weeks ago

Chart Beat: Tough March quarter for cement companies?

Live Mint  

Pricing trends in the domestic cement industry have remained subdued for a while now. According to a recent dealers channel check by Jefferies India, there was a 1.5% decrease in the all-India average cement price to ₹362 per 50-kg bag in January. There is a risk to realization of cement companies in the March quarter, if prices remain muted in …

H1FY24 likely to be a washout for cement prices
1 year, 6 months ago

H1FY24 likely to be a washout for cement prices

Live Mint  

Cement prices have been lacklustre so far in the June quarter, even as demand has remained robust driven by government spending on infrastructure projects. That said, strong cement demand and easing input cost inflation are comforting and could save the sector from seeing steep earnings downgrades for FY24. Government expenditure on infrastructure development is driving a broad-based increase in cement …

Cement sector outlook positive, Ultratech among top 3 picks by Motilal Oswal
1 year, 11 months ago

Cement sector outlook positive, Ultratech among top 3 picks by Motilal Oswal

Live Mint  

Cement manufacturing companies are expected to do well for next few years on the back of better demand prospects led by infrastructure and housing sectors, heightened industry consolidation, and regulatory changes in the allotment of limestone blocks. Average price of a cement 50kg bag has gone up 3% on a quarter-on-quarter basis in the third quarter of FY23, Motilal Oswal …

Cement margins may improve in the long run, but near-term risks aplenty
3 years, 10 months ago

Cement margins may improve in the long run, but near-term risks aplenty

Live Mint  

MUMBAI: Foreign brokerage house Morgan Stanley expects a broad-based recovery in the Indian cement sector and estimates an above-average demand growth of 9% annually over fiscal years 2021-23. Hit hard by cost inflation, cement makers took a much-needed hike of around Rs50/bag in March, according to dealer channel checks by various brokerages. Reacting to the brokerage firm's upbeat outlook, shares …

Cement price hikes are welcome, but offer only near-term cushion
3 years, 10 months ago

Cement price hikes are welcome, but offer only near-term cushion

Live Mint  

Investors in cement stocks can heave a sigh of relief now that the much-awaited price increases have happened. There were concerns that input-cost inflation would start eroding the sector’s operating margins soon without price hikes. Latest dealers channel check by Motilal Oswal Financial Services Ltd showed that in March, the cement prices were raised around ₹15–30/bag across regions. Despite the …

Cement players with focus on North and Central India remain better placed
4 years, 10 months ago

Cement players with focus on North and Central India remain better placed

Business Standard  

Cement players with focus on North and Central India remain better placed Most regions show cement prices per 50 kg bag to have improved by 0.7-5.0 per cent, while average prices in South India are still down 0.4 per cent. Premium Elara Capital's channel checks suggest that average all-India cement prices are up by 2.4 per cent in the current …

Cement prices correct further in July as seasonal demand weakness intensifies
5 years, 5 months ago

Cement prices correct further in July as seasonal demand weakness intensifies

Live Mint  

As anticipated, cement prices across India corrected further in July as demand remained subdued due to off-season. Cement dealers survey by Reliance Securities Ltd showed that all India average cement price declined by nearly ₹10-12/bag month-on-month in July to ₹314 from ₹325. Cement dealers channel check by another brokerage JM Financial Institutional Securities Ltd showed similar price trends. Better realisations …

Regaining pricing power to be a long grind for cement companies
5 years, 9 months ago

Regaining pricing power to be a long grind for cement companies

Live Mint  

The worst fears of investors in cement stocks have come true, with cement prices falling in March. Cement prices across India fell by ₹2/bag to ₹305 in March, showed a dealer channel check by Motilal Oswal Securities Ltd. One cement bag weighs 50kg. In Hyderabad, Kerala and Bengaluru, the survey showed cement prices declined by as much as ₹20/bag against …

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