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Cement production growth forecast downgraded

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Cement producers will be hit by the country’s demonetisation programme and higher pet coke prices, according to ratings agency, India Ratings and Research (Ind-Ra).
According to Ind-Ra, cement production is likely to grow by 4 per cent in the 2017 fiscal (FY17). This is down from its earlier estimate of 4-6 per cent, as the real estate and construction sectors bear the brunt of the economic impacts of demonetisation, which saw the government ban higher denomination currency notes.
Lower cement output is expected to be focused in the November-December 2016 period, Ind-Ra said. Production growth was just 0.5 per cent in November, compared to 6.2 per cent in October and 4.3 per cent on average between April and November. Prices have also fallen between Rs 15 and Rs 20 per bag.
In addition to weaker demand, Indian cement producers are having to deal with a rise in the cost of pet coke to around $60-70 per tonne from $40 per tonne at the start of FY17. More costly pet coke – as well as higher diesel prices – increases input costs for cement production, while lower demand limits the ability of cement companies to pass on higher prices to their customers, squeezing margins.
This could place smaller-scale producers under stress in coming quarters, according to Ind-Ra, although the outlook for bigger cement producers is more stable.

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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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