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 70-80 per cent cheaper. Over the last decade, the price of a 50-kg cement bag has increased by only 50 per cent, compared to a 400 per cent increase in the price of a cup of tea. The industry has seen a mere 1 per cent CAGR in cement prices over the past decade.

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History of this topic

Cement's growth surge: 50% CAGR projected by 2027 – Are these stocks ready?
1 week, 2 days ago

Cement's growth surge: 50% CAGR projected by 2027 – Are these stocks ready?

Live Mint  

Despite record-breaking home sales, robust infrastructure projects, and a thriving economy, the sector has struggled to keep pace, weighed down by pricing pressures, overcapacity, and sustainability challenges. View Full Image Source: Cement Sector Outlook by IKIGAI However, the sector performed much below the GDP growth rate in the next decade due to economic issues. View Full Image Source: Cement Sector …

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 …

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, …

Cement makers are buying green power and private ships. Here's why
1 month, 3 weeks ago

Cement makers are buying green power and private ships. Here's why

Live Mint  

Indian cement makers, once reliant on pricing power, are shifting gears to survive a bruising price war that’s eroding margins even as demand climbs. Race to cut production costs Cement makers are looking to save an average of ₹200 per tonne, according to analysts. Adani aims to reduce costs by an ambitious ₹530 per tonne by FY28, leveraging synergies across …

Shree Cement Q2 Results Live: Profit Falls by 82.89% YOY
1 month, 4 weeks ago

Shree Cement Q2 Results Live: Profit Falls by 82.89% YOY

Live Mint  

Shree Cement Q2 Results Live : Shree Cement declared their Q2 results on 11 November 2024, revealing a significant decline in performance compared to the previous year. Shree Cement has experienced negative returns in recent months, delivering -1.8% return in the last week, -6.06% return over the past six months, and -14.78% year-to-date. As of 12 November 2024, out of …

Shree Cement Q2 Results: Profit tanks 81% YoY to ₹93 crore but beats estimates on higher-than-expected volume growth
Trending News
1 month, 4 weeks ago

Shree Cement Q2 Results: Profit tanks 81% YoY to ₹93 crore but beats estimates on higher-than-expected volume growth

Live Mint  

India's Shree Cement topped second-quarter profit estimates on Monday, as higher-than-expected sales volumes helped mitigate low prices of the key construction material. The country's third-biggest cement maker by market capitalisation reported a net profit of 931.3 million rupees for the three months ended Sept. 30, down 81% from year-ago. For further earnings highlights, KEY CONTEXT Shree Cement logged a volume …

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, …

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 …

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 …

Shree Cement is losing its edge over peers, but valuation remains pricey
1 year, 5 months ago

Shree Cement is losing its edge over peers, but valuation remains pricey

Live Mint  

Shree Cement Ltd has been in focus lately, but not for the right reasons. Further, akin to close competitor Ulltratech Cement Ltd, the company is also going full throttle on capacity additions, amid robust demand outlook. Importantly, the company has accelerated its growth plans by announcing a fresh capacity expansion of clinker/cement capacity by 7.3 million tonne per annum /12mtpa …

Ultratech Q4 profit climbs 12.7% excluding one-offs
1 year, 8 months ago

Ultratech Q4 profit climbs 12.7% excluding one-offs

Live Mint  

Ultratech Cement Ltd on Friday reported a net profit of ₹1,666 crore for the quarter ended 31 March, a 32.3% decline from ₹2,460.51 crore posted in the same period a year earlier. It commissioned a cement capacity of 5.6 mt per annum during the quarter, taking the total grey cement capacity of the company to 126.95 mtpa in India. Including …

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 …

Why JK Cement can’t rest on Q1 laurels
2 years, 4 months ago

Why JK Cement can’t rest on Q1 laurels

Live Mint  

The availability of low-cost inventory saved the day for JK Cement Ltd in the June quarter. “Increased diversification in central India, attractive regional prices, and demand growth prospects make the expansion project value-accretive," said analysts at Kotak Institutional Equities. However, after the recent run-up in the stock’s price, valuation has become expensive, especially given the weak performance of its white …

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 …

UltraTech sees steady fourth quarter, rocky road ahead spoils prospects
4 years, 7 months ago

UltraTech sees steady fourth quarter, rocky road ahead spoils prospects

Live Mint  

The Aditya Birla Group-owned UltraTech Cement Ltd’s stock closed 3% higher on Wednesday, cheering a strong March quarter performance. The pan-India cement maker gained from strong product prices and lower material cost, as did its peers that have declared results in the last fortnight. The moot point now is whether cement prices will sustain to give UltraTech’s profits a leg …

Shree Cement stock valuation prices in profit beat in trying times
4 years, 7 months ago

Shree Cement stock valuation prices in profit beat in trying times

Live Mint  

Shree Cement Ltd’s efforts to trim costs combined with a favourable market mix led to a strong profit beat in the March quarter. In addition to lower raw material, power and fuel costs, a phenomenon seen across the industry during the quarter, Shree Cement scored on reducing employee costs. Shree Cement’s ebitda/tonne too jumped by about 34% yoy, sustaining the …

Shree Cement Q3 net profit up 3% to ₹309.95 crore
4 years, 10 months ago

Shree Cement Q3 net profit up 3% to ₹309.95 crore

Live Mint  

Mumbai: Cement manufacturer Shree Cement Ltd on Friday posted a 3% increase in its net profit at ₹309.95 crore in the quarter ended December 31, 2019 helped by drop in fuel and other input costs. The company said cement sales went up 6% to 5.98 million ton from 5.64 million ton recorded in the corresponding quarter of the previous year. …

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 …

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 …

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