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 due to price hikes taken during April-May along with soft input cost aided operating margins.

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History of this topic

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 …

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 …

Incremental investment in cement sector will come only when profitability improves: Report
1 week, 6 days ago

Incremental investment in cement sector will come only when profitability improves: Report

Live Mint  

New Delhi, December 27 : The Indian cement industry must significantly improve its profitability, with EBITDA needing to exceed Rs1,000 per ton to justify the bare minimum return on capital employed for future investments, according to a report by IKIGAI Asset Manager. Power from renewable sources is 40-50 per cent cheaper than grid power, while waste heat recovery systems are …

India Cements share price surges 11% to 52-week high on CCI nod to UltraTech deal
Top News
2 weeks, 3 days ago

India Cements share price surges 11% to 52-week high on CCI nod to UltraTech deal

Live Mint  

India Cements share price jumped 11% to reach a new 52-week peak during Monday's trading session after the announcement that the Competition Commission of India has sanctioned UltraTech Cement Limited's acquisition of The India Cements Limited. The proposed arrangement involves UltraTech Cement Limited purchasing 32.72 percent of the paid-up equity share capital of The India Cements Limited from its promoters …

Explained: Why India Cements share price surged 11% today
Trending News
2 weeks, 4 days ago

Explained: Why India Cements share price surged 11% today

India Today  

Shares of India Cements Ltd surged 11% on Monday following news of UltraTech Cement receiving approval from the Competition Commission of India to acquire a majority stake in the company. UltraTech Cement plans to acquire 10,13,91,231 equity shares of India Cements, each valued at Rs 10. The acquisition deal was first announced on July 28, 2024, with UltraTech Cement revealing …

Cement makers hike discounts after Adani foray: Report
2 weeks, 6 days ago

Cement makers hike discounts after Adani foray: Report

Live Mint  

As competition in India’s cement sector heated up with the entrance of the Adani Group in September 2022, top manufacturers bumped up discounts to maintain market share, according to a report from British wealth manager Investec. The average discounts offered per tonne of cement by UltraTech Cement, Shree Cement and Dalmia Bharat increased consistently over FY23 and FY24, shows the …

Have India’s top cement stocks entered the value buy territory?
3 weeks ago

Have India’s top cement stocks entered the value buy territory?

Live Mint  

The month of December 2024 has brought a glimmer of optimism for India’s cement sector. Pricing: Struggling to maintain momentum While the cement prices are now higher than the second quarter’s average, the industry’s recent history with price rollbacks signals caution about whether these hikes will hold. View Full Image Cement companies debt profile-FY24 What sets the sector apart is …

Cement sector needs lady luck to smile on prices
1 month, 2 weeks ago

Cement sector needs lady luck to smile on prices

Live Mint  

The Indian cement sector is expected to perform better in the second half of FY25 compared to the sluggish first half, particularly in terms of demand and prices. Pan-India cement prices in the trade segment rose by ₹8 month-on-month in November to ₹342 per bag, showed a recent dealers’ channel check by Nomura Global Markets Research. Recall that in H1FY25, …

For Ramco Cements, quick revival looks challenging
7 months, 2 weeks ago

For Ramco Cements, quick revival looks challenging

Live Mint  

The Ramco Cements Ltd saw a better-than-anticipated volume of 5.5 million tonne, up 17% year-on-year in the March quarter. Akin to peers, Ramco’s realizations took a hit in Q4 due to muted prices in core markets of south and east India. According to Centrum, Ramco has overspent on capex over the past four years resulting in lower return ratios.For FY25, …

UltraTech Cement share price rises over 4% after strong Q4 results
8 months, 1 week ago

UltraTech Cement share price rises over 4% after strong Q4 results

Hindustan Times  

UltraTech Cement share price: The share price of UltraTech Cement gained over 2% today after the Aditya Birla Group’s flagship cement maker reported Q4 results. UltraTech Cement- which is India's largest cement maker by capacity- topped fourth-quarter profit estimates owing to strong sales volumes. Company's finance chief Atul Daga said, “There might be some moderation in cement demand in FY25, …

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 …

Price hikes in East to benefit select cement makers in Q2FY24
1 year, 3 months ago

Price hikes in East to benefit select cement makers in Q2FY24

Live Mint  

The September quarter tends to be seasonally weak for the cement sector as construction activities take a backseat due to the monsoon. With that, the trade price of one cement bag in the East stands at ₹404, which is a whopping 21% jump on a month-on-month basis, shows data from Nomura Financial Advisory and Securities. “Our channel checks suggest that …

India Cements reports net loss of ₹75.3 crore in Q1; revenue falls 3.7%
1 year, 5 months ago

India Cements reports net loss of ₹75.3 crore in Q1; revenue falls 3.7%

Live Mint  

India Cements reported a standalone net loss of ₹75.27 crore in the first quarter of FY24 as compared to a net profit of ₹76.09 crore in the same period last year. Operating performance in the June quarter weakened as earnings before interest, taxes, depreciation and amortization decreased 83.7% to ₹5 crore from ₹30.9 crore, while EBITDA margin compressed by 170 …

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 investors see Q3 with mixed feelings
2 years ago

Cement investors see Q3 with mixed feelings

Live Mint  

After a dull September quarter, expectations were that cement demand and prices would bounce back meaningfully in the December quarter of FY23. In the last few weeks, cement demand has been largely driven by government infrastructure projects, while the individual home building segment is yet to recover, said Motilal Oswal Financial Services Ltd in a report on 20 December. The …

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 …

Resuming cement capex plans is good, but pricing concerns remain
3 years, 10 months ago

Resuming cement capex plans is good, but pricing concerns remain

Live Mint  

Cement manufacturers have resumed their organic growth plans. For instance, UltraTech Cement Ltd, which has a pan-India presence, announced 12.8 mtpa of new capacity expansion in the central and eastern regions. Regional cement makers such as JK Cement Ltd, Orient Cement Ltd, JK Lakshmi Cement Ltd and The Ramco Cements Ltd have also announced capacity expansions. To tap the impending …

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 …

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 …

Why cement price hikes are hard to come by in East India
5 years, 9 months ago

Why cement price hikes are hard to come by in East India

Live Mint  

Cement prices across most of India increased in February, but East India was an exception. A dealer channel check by Kotak Institutional Equities Ltd showed cement prices in this region, on the contrary, declined by ₹5 per bag to ₹326. That said, cement prices in East India are unlikely to sharply reverse because of capacity additions. The eastern region is …

Cement spreads are improving but will they sustain?
5 years, 10 months ago

Cement spreads are improving but will they sustain?

Live Mint  

Thanks to steep cement price hikes and easing input costs, spreads of cement firms are improving. Since cement price hikes were mostly led by the southern and western parts of India, higher increases in spreads are seen for cement producers having exposure in these regions. The latest dealer channel check by the brokerage house showed that all-India cement prices increased …

How severely will wage hikes impact cement firms?
5 years, 10 months ago

How severely will wage hikes impact cement firms?

Live Mint  

Recently, raw material and energy costs began to ease for the cement sector. But even before those benefits could flow in, companies are faced with yet another expense that could keep their operating costs elevated. On Thursday, the Cement Manufacturers Association signed a new wage settlement pact with major trade unions, for increasing the gross monthly payment of employees by …

Vijayawada: Cement price to go up: CREDAI
5 years, 10 months ago

Vijayawada: Cement price to go up: CREDAI

Deccan Chronicle  

Vijayawada: Just 20 cement companies are dictating terms to the industry and controlling prices across the country, said the Confederation of Real Estate Developers Association of India on Thursday, demanding the government impose control on the cement manufacturers. CREDAI general secretary Ch Sudhakar said that cement prices are witnessing a hike every year in the summer when construction activity spikes. …

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