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Penalty on cement players credit neutral – India ratings

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The Competition Commission of India’s penalty of over Rs 6,700 crore on 11 cement companies amounts to 20-75 per cent of the players’ 2015-16 operating profits, however, the move is credit neutral due to their low leverage levels, said India Ratings and Research.
"Most of the companies (eight out of 11) maintain a low leverage and thus will be in a position to absorb the burden, in the event the penalty has to be paid. The penalty, however, will put pressure on the credit metrics for companies with relatively high levels of leverage," the ratings agency said in a statement.
Fair trade regulator CCI in its order dated August 31, 2016 imposed a penalty of Rs 6,700 crore on 11 cement companies for alleged cartelisation.
"Maintaining high prices in the face of declining capacity utilisation has over the past few years allowed cement companies to contain decline in profits," it said.
India Ratings said it maintains a stable outlook for cement manufacturers for 2016-17 and expects the cement industry to grow in the range of 4 per cent-6 per cent during 2016-17.
"A favourable monsoon after two consecutive bad years, can give a leg-up to rural demand, and government initiatives (such as ‘Housing for All’ and the thrust on infrastructure activities) are expected to improve overall cement demand with a lag and show signs after FY17," the rating agency said

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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