Economy & Market

Cement market bullish

Published

10 years ago

November 30, 2014

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According to market reports, the September quarter results of many cement companies show a positive trend with the government?s thrust on infrastructure sector. Market analysts feel that shares of cement companies are already pricing in the start of an upcycle in the industry.

Mangalam Cement hits record high
Mangalam Cement has surged 4 per cent to Rs 330 on National Stock Exchange (NSE) after India Capital Fund purchased 602,596 equity shares or 2.26 per cent stake of the company through open market.

On November 17, 2014 India Capital Fund bought 446,414 shares of Mangalam Cement at Rs 315 on the BSE and bought 156,182 shares at Rs 315 on the NSE, according to the bulk deal data.

The stock opened at Rs 320 and touched a record high of Rs 336 on NSE. A combined 190,417 shares changed hands on the counter till 1107 hours on NSE and BSE.

The company?s trailing 12-month (TTM) EPS was at Rs 9.70 per share. (Sep, 2014). The stock?s price-to-earnings (P/E) ratio was 32.48. The latest book value of the company is Rs 189.93 per share. At current value, the price-to-book value of the company was 1.66. The dividend yield of the company was 1.9 per cent.

Shree Cement Q2 net dips 37 per cent
Shree Cement reported a 37 per cent dip in net profit for the July-September quarter of the current fiscal at Rs 108.81 crore on higher expenses. The company, which has an annual capacity of 17.5 million tonne, had clocked Rs 172.22 crore net profit in the same quarter last fiscal, according to its BSE filing.

Total income, however, rose to Rs 1,608.08 crore during the reporting quarter from Rs 1,247.54 crore in the corresponding period, a year earlier. Expenses, on a host of heads including raw material and fuel costs, on the other hand, rose to Rs 1,490.51 crore from Rs 1,112 crore in the year-ago period.

The company consumed raw material worth Rs 137.41 crore from Rs 104.53 crore. Power and fuel costs escalated to Rs 413.47 crore from Rs 300.45 crore. Freight expenses went up to Rs 316.99 crore from Rs 249.32 crore. Depreciation charges in the quarter also increased to Rs 222.65 crore from Rs 113.87 crore in the same period, last year.

India Cements back on profit track
The India Cements has reported a satisfactory performance during second quarter of this year against cost pressure and weak demand in the south. According to official estimates, cement industry grew 9 per cent at the national level in the first half of this year ending September 30, 2014 against practically nil growth in the previous year. South was the weakest among the regions.

India Cements, during the second quarter ending September 30, 2014 improved its net plant realisation which helped to offset the drop in volume and the cost increases. This resulted in an EBIDTA (operating profit) of Rs 183 crore in Q2, FY 15 against Rs 134 crore in the same quarter of the previous year.

The company reported a net profit of Rs 7.49 crore. Net sales improved to Rs 1131.68 crore (Rs 1093.78 crore). The board at the meeting held on November 12, 2014 approved the proposal for raising an amount not exceeding Rs 500 crore by way of issue of issue of QIP/FCCB/GDR/other securities to improve the leverage and for meeting normal capital expenditure.

Ramco Cements Q2 net jumps five-fold
The Ramco Cements Ltd, formerly Madras Cements Ltd, reported about five-fold jump in its standalone net profit to Rs 89.71 crore for the second quarter ended September on the back of cost reduction and improved realisation. The company had posted a net profit after taxes, minority interest and share in profit/(loss) of associates at Rs 18.27 for the same period in the previous fiscal, it said in a statement.

Total income from operations for the July-September quarter also increased by Rs 30.72 crore to Rs 951.43 crore from Rs 920.71 crore in the same period a year ago. For the half-year ended September 30, the net profit of the company escalated 44.59 per cent to Rs 125.97 crore from Rs 87.12 crore in the year-ago period. For the first half of the current fiscal, Ramco?s total income from operations increased marginally and stood at Rs 1,910.58 crore, up from Rs 1,907.89 crore in the corresponding period of the previous fiscal.

The lower production and sale of cement during the half-year under review is due to continued slackness in demand for cement in key areas of its market, the company said. The fillip for infrastructure activities due to bifurcation of Andhra Pradesh is expected to materialise in the coming months.

Concrete

15th Cement EXPO: A Step Forward in Cement Innovation

Published

3 weeks ago

January 17, 2025

admin

Mumbai

Following the immense success of the 14th Cement EXPO, held on December 14-15, 2023, at the Manekshaw Centre, New Delhi, the next edition of this premier event is set to take place in March 2025. The 15th Cement EXPO will be hosted at Yashobhoomi, Delhi, on 12th and 13th November 2025.

Meanwhile, the Cement Expo Forum 2025 is scheduled for 5th and 6th March 2025 at Taj Krishna in Hyderabad. This exciting 3-in-1 event, organised by FIRST Construction Council (FCC) and Indian Cement Review (ICR), will bring together industry leaders, innovators, and stakeholders to discuss the future of the cement sector.

Building on the Success of the 14th Cement EXPO

The 14th Cement EXPO was widely praised for its strong participation, attracting over 1,500 senior managers and decision-makers from across the cement industry. The event was inaugurated by Dr. Vibha Dhawan, Director General of TERI, and Ali Emir Adiguzel, Founder and Director of the World Cement Association, alongside Pratap Padode, Founder of FIRST Construction Council (FCC). The two-tiered exhibition space featured cutting-edge products and innovations from top companies within the cement industry’s supply chain.

The event also garnered significant support from key government bodies, including the Ministry of Road Transport and Highways, Government e-Marketplace (GeM), and the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry, Government of India (GoI).

Recognition and Excellence in the Cement Industry

The 7th Indian Cement Review Awards celebrated excellence by presenting awards to 11 companies in various categories, recognising their contributions to growth and innovation within the industry. Notably, Parth Jindal, Managing Director of JSW Cement, was honoured with the prestigious Indian Cement Review – Person of the Year Award 2023. Meanwhile, Vinita Singhania, Vice Chairman and Managing Director of JK Lakshmi Cement Ltd, received the Lifetime Achievement Award for her outstanding leadership and contributions to the sector.

A Vision for Sustainability

With the theme of “Driving Sustainability Through Technology,” the 9th Indian Cement Review Conference hosted thought-provoking discussions and presentations, highlighting the industry’s commitment to adopting innovative, sustainable practices. The conference served as a platform for dialogue on the latest technological advancements aimed at transforming the cement sector, addressing key challenges, and fostering growth.

What to Expect from Cement EXPO 2025

The 15th Cement EXPO, along with the 10th Indian Cement Review Conference and the 8th Indian Cement Review Awards, is set to be even bigger and more impactful than the 2023 edition. With an expanded exhibition space, greater participation, and more in-depth discussions, the 2025 event will continue to drive the industry forward. This 3-in-1 event promises to be a pivotal moment in the ongoing transformation of the cement sector.

As the industry evolves, the 15th Cement EXPO 2025 will serve as a crucial platform for showcasing innovations, discussing emerging trends, and forging new partnerships to shape the future of cement and construction.

For more details:

Cement Expo Forum 2025: https://cementexpo.in/forum

15^th Cement Expo 2025: https://cementexpo.in/

FOR CONFERENCE SPONSORSHIPS

Sheetal Talreja

Mob: +91 842 2874 030

Email: sheetal@IndianCementReview.com

FOR EXHIBITION/SPONSORSHIPS

Sujoy Gomes

Mob: +91 865 7795 881

Email: Sujoy.g@ASAPPinfoGlobal.com

FOR SPONSORSHIPS

Ratan Rajbhar

Mob: +91 842 2874 021

Email: ratan.r@ASAPPinfoGlobal.com

Concrete

Construction sector growth slows to 8-10% for FY2025: ICRA

Published

3 weeks ago

January 15, 2025

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The revenue growth for construction companies in FY2025 is projected at 8-10 per cent, down from the earlier estimate of 12-15 per cent, according to ICRA. This marks the slowest growth in three years, driven by factors such as the Model Code of Conduct in Q1, prolonged monsoons, and milestone-based billing in Q2, particularly affecting road-focused players.
ICRA’s analysis of 19 companies with a combined turnover of Rs.1.28 trillion in FY2024 shows modest revenue growth of 1.5 per cent YoY in H1 FY2025. While execution is expected to improve in H2, FY2025 growth remains below the historical CAGR of ~15 per cent (FY2018-FY2024).
Order inflows in urban transport, water and sewage projects are healthy, but road-focused entities face challenges due to muted inflows and high competition. Operating margins are projected to remain range-bound at 10.5-11 per cent, with debt levels rising to manage working capital needs, though debt coverage metrics remain stable.

Concrete

SANY India expands Pune factory to boost production capacity

Published

3 weeks ago

January 15, 2025

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SANY India inaugurated a cutting-edge factory expansion at its 90-acre Pune facility, elevating its production capacity to over 14,000 units annually, alongside a robust fabrication capacity of 100,000 metric tonnes.

The advanced facility reinforces SANY’s commitment to ‘Make in India’ by enhancing localised manufacturing and supporting global exports. Chairman Xiang Wenbo highlighted the strategic importance of India as a global hub, while Vice Chairman Deepak Garg emphasised the expansion’s role in driving innovation and infrastructure development. This investment enhances efficiency, reduces timelines, and strengthens SANY’s leadership in the construction equipment sector.