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Cement sector’s outlook stable for FY17

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The Indian cement sector has managed to bag a ‘stable’ rating outlook for FY17 from India Ratings and Research. The rating agency in its latest report – FY17 Outlook said, "Cement demand is likely to grow between 4 per cent and 6 per cent in FY17." Cement demand grew at 2.1 per cent during April-November 2015, which is a lot lower than the agency’s forecast of 6.5 per cent – 8 per cent in FY16.

"The agency does not expect any significant pick-up in urban housing demand as the real estate sector across major six cities (except Kolkata) is still ailing with high inventory levels," it said in the report.

While the southern part of India is giving signals of a spurt in capacity utilisation to 60-61 per cent in FY17 from 57 per cent in FY16, the eastern part, which is doing well, at 75 per cent is expected to see a downtrend and may fall by 8-9 per cent in FY17. Other regions are expected to maintain the current capacity utilisation.

If at all there are no improvements on the capacity utilisation, the cement manufacturers will continue to enjoy and maintain profitability on the back of lower fuel and freight prices.

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Concrete

Shree Cement reports 2025 financial year results

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Shree Cement posted revenue of US$2.38 billion for FY2025, marking a 5.5 per cent decline year-on-year. Operating costs rose 2.9 per cent to US$2.17 billion, resulting in an EBITDA of US$528 million—down 12 per cent from the previous year. Net profit fell 50 per cent to US$141 million. The company reported cement sales of 9.84Mt in Q4 FY2025, a 3.3 per cent increase from 9.53Mt in Q4 FY2024, with premium products making up 16 per cent of total sales.

Image source:https://newsmantra.in/

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Concrete

Rekha Onteddu to become director at Sagar Cements

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Sagar Cements has announced the appointment of Rekha Onteddu as a non-executive independent director, effective 30 June 2025. According to People in Business News, Rekha Onteddu is currently serving in a similar capacity at Andhra Cements, the parent company of Sagar Cements.

Image source:https://sagarcements.in/

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Concrete

India’s cement consumption set to rise

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According to a Moody’s report, India’s cement consumption is projected to rise by 50 per cent over the next five years, increasing from 445 million metric tons per annum (MMTPA) in FY24 to 670 MMTPA by 2030. This growth is expected to be driven by government infrastructure spending and rising housing demand, with an anticipated annual growth rate of 6-7 per cent. To meet this demand, major cement companies are likely to continue acquiring smaller, less profitable firms.

Image source:https://www.telegraphindia.com/

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