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Economy & Market

Cement Industries wobble in Q2

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With GST rolling over at the start of quarter of July-September 2017, the cement industry was caught off guard about the new process, but more than euphoric on the One Nation One Tax regime. Pegged under the highest slab rate of 28 per cent, the cement industry was found wobbling under the new tax regime due to the temendous paper work, added with the inconsistency in the chain’s backward and forward link. Other problems include the temporal problem fixing by the government and above all multiple rates for buying raw materials and selling final goods.

The GST rates and the processess kept tinkering in order to overcome pointed anomalies and issues relating to filing of the returns. Nevertheless, the quarter being seasonally dull for the cement industry due to low construction activity during monsoon, and with falling production volumes, the performance of most of the companies was under strain from both, the demand and the supply side. Further, points such as the avaliability of sand, the ban on the usage of petcoke and furnace oil will continue to haunt the cement companies. Nitin Madkaikar reviews the performance of cement companies during the quarter July to September 2017, only to come to a conclusion that there is long way to go under the new tax regime for all related activities to be on the same page.

Financial results of 33 large and small cement companies which represent around 50 per cent of the sales for the quarter ended September 2017 showed a growth of 12 per cent in top line in a year on year (YOY) comparison but down 16per cent sequentially (September over June). The bottom line was negative in both comparisons declining sequentially by 5.6 per cent and 42 per cent respectively. These companies are categorised into large (those with quarterly net sales of over Rs.1,000 crore), medium (those with net sales of Rs.200-1,000 crore) and small (companies with net sales of less than Rs.200 crore). The financial results of quarters ending September 2016, June 2017 and September 2017 are considered for review in this analysis.

In the previous quarter, (June 2017) the cement business had suffered due to the wholesalers and retailers reducing stocks prior to the Goods and Services Tax (GST) roll out. This quarter was mired by the implementation of the new tax regime, the GST, resulting in performance below market expectation. Nevertheless, the quarter is seasonally dull for cement business due to low construction activity during the South West monsoon.

Of the 33 companies under review, 10 companies posted declined in yoy sales (including 4 large) but QoQ decline was posted by 23 companies (including 6 large companies). So top line was down across categories and not for a particular category. Similarly, yoy net profits were down in 18 companies (including 7 large companies) while QoQ saw net profits down in 24 companies (including 8 large companies). This implies, the bottom line was adversely affected across all size of companies.

The overall profitability (Net Profit/Net Sales) was at 6.1 per cent in September 2017 quarter, down from 7.3 per cent in quarter of September 2016 and 9 per cent in quarter of June 2017. Almost all companies could manage to post positive margin excepting five companies who recorded net loss during the September 2017 quarter. Only three companies Ambuja Cements, Ramco Cements and OCL India could manage to maintain their margins across three quarters under review. 16 companies saw profitability drop below their levels a year ago while 24 companies saw profitability levels below previous quarter.

The weak performance can also be drawn from the macro factors like production. In Q1 2017-18, total cement production was down 3.3 per cent year on year (at 73 million tons) which could not revive in Q2 and fell again although marginally by 0.4 per cent (68 million tons). Thus, the first half of 2017-18 saw production fall 2 per cent compared to 5 per cent increase (in similar comparison) in the same period a year ago. The GDP growth also tapered in Q1 2017-18 to 5.7 per cent but recovered slowly to 6.3 per cent in Q2. Many GDP growth predictions for the year are revisited but mostly points towards a lower economic growth for the year.

Prospects
As per the predictions of industry experts, there will be a growth in the industry at 5-6 per cent CAGR between FY’17 and FY’20 and the domestic consumption is set to out pace the supply in the next three fiscal years. In the Union Budget 2017-18, Rs 22,500 crore was allocated to achieve government’s mission of ‘Housing for All by 2022’. the housing sector alone accounts for nearly 67 per cent of the total cement consumption in India. The increased allocation to rural low-cost housing under Pradhan Mantri Awaas Yojana- Gramin scheme to Rs 23,000 crore is likely to result in a rise of 2 per cent in the cement demand.

For the year, the cement demand is expected to register a modest rise of 1 per cent in 2017-18 pushed by pick-up in affordable and rural housing and road and irrigation projects, said rating agency ICRA. As per the agency, the cement offtake was weak in first half of the year which extended into October due to factors like weak real estate activity, sand shortage and GST implementation issues. However, new project announcements from private sector will remain weak. The demand is expected to rebound in from the fourth quarter of the year as against the earlier expectation of the third quarter, the rating agency said.

Company-wise Performance Ambuja Cement
Ambuja Cement delivered strong numbers while focusing on brand building, through differentiated offerings for individual home builders, building and infrastructure segments. According to Ajay Kapur, Managing Director and CEO, the company’s strategy to focus on key markets, premium products and value based pricing has paid off, leading to strong net sales and EBITDA growth.

During July-September 2017 quarter Ambuja Cement recorded higher sales and growth in value-added pricing, but it also faced cost pressures relating to rising fuel costs, packaging and raw material prices. Thus, there has been a move to increase the use of petcoke and alternative fuels further, as against 67 per cent it achieved in June 2017. Ambuja Cement’s net sales rose 14 per cent YOY to Rs 2,320 crore even as sales volume grew slower at 11.6 per cent to 5.02 million ton. Net profits, however, moderated 2 per cent to Rs 272 crore for the quarter. EBITDA per ton rose 3 per cent to Rs 706.

UltraTech cement
UltraTech Cement reported a 28 per cent decline in net profit (in standalone) to Rs 431 crore for the quarter ended September 2017. It had clocked net profit of Rs 601 crore in the July-September 2016. The company’s net sales were up 6.1 per cent at Rs 6,571 crore during Q2 2017-18 as against Rs 6,196 crore in same quarter the year-ago.

This quarter continued to witness increasing cost trends, attributable to increase in fuel price while total expenses were up 11per cent at Rs 6,095 crore as against Rs 5,491 crore. Depreciation increased 59 per cent to Rs 499 crore while interest cost doubled to Rs 376 crore due to cost involving new cement plant acquisition. Meanwhile, EBITDA increased 24 per cent to Rs 1,350 crore, translating into EBITDA/ton of Rs 1,028 and margin of 21per cent.

The company stated that the acquisition of cement plants of Jaiprakash Associates and Jaypee Cement Corp had helped it augment capacity to 93 million ton per annum. The acquisition has also enhanced its footprint in the high growth markets of central India, eastern UP and coastal Andhra Pradesh, where the company has been focusing to increase its presence.

ACC
Ace cement maker ACC reported over two-fold increase in net profit to Rs 178 crore for the quarter ended September 2017, largely driven by increased productivity and cost optimisation. Net sales was up 24 per cent Rs 3,116 crore for the quarter under review against Rs 2,519 crore in the corresponding period a year ago.

According to the company, the strong result is the reflection of increased focus on premium products, improved customer service levels and relentlessly driving productivity and cost optimisation.

The company expect demand for cement to remain favourable in the coming quarter spurred by the government’s increased spending on infrastructure.

Prism Cement
The company reported net sales for Q2 at Rs 2,238 crore but posted net loss of Rs 24 crore in quarter versus net profit of Rs 17 crore in the corresponding quarter of 2016-17.

The company’s volumes were impacted due to near complete sand mining ban in UP and Bihar, which together constitutes approximately 70 per cent of the sales. Further, a slowdown in the execution and new launches of real estate projects due to RERA registration of existing projects impacted volumes of tiles and ready mixed concrete segment.

Shree Cement
Financial results of Shree Cements were a mixed set of earnings in quarter ended September 2017, as it was slightly better than the low expectations.

According to H M Bangur, Managing Director, the worst seems to be over for the cement industry – the impact of demonetisation, GST now behind. The company expect better results in Q3 because of low base effect.

Availability of sand was a problem for the cement makers but believes to be over soon. Historically, demand for cement in Q3 is maximum, Bangur pointed out.

Shree Cement expects demand to grow 15per cent in next three years with sales volumes up 12per cent in 2017-18 for the company and able to achieve sales of 20 million tons against 18 million tons last year. However, pressure on margins will increase in transportation costs and freight costs. The freight costs have increased 17per cent YoY, at Rs 200 a ton during the quarter.

The Supreme Court’s ban on use of petcoke and furnace oil in Delhi-NCR region will not impact the company since it follows all emission standards of using Petcoke.

India Cements
India Cements reported net profits of Rs 24 crore for the quarter ending September 2017 against Rs 62 crore during the same quarter previous year. Net sales during the quarter came down to Rs 1,268 crore as against Rs 1,314 crore last year. The financial numbers are not comparable with last year since sales include excise duty besides its subsidiary Trinetra Cements was merged with it.

According to N Srinivasan, Vice-Chairman and Managing Director, the ‘sluggishness’ in performance cannot be attributed alone to demonetisation introduced last year or GST or general economic slowdown, but a combination of all three factors. However, absence of freely availability of sand was also a reason. In Tamil Nadu cement volume could not rise despite the demand. He also stated that this was the first time the company witnessed a de-growth.

OCL India
Although performance of OCL in the Q2 improved, it fell short of expectations as the numbers were weaker than expected. While net sales declined 3 per cent , net profit fell 8 per cent.

JK Cement
The company reported over two-fold increase in its net profit to Rs 93.14 crore for the quarter ended September 2017 and net sales up 3 per cent at Rs 1,108 crore in the quarter. The company, part of the US$4 billion JK Group, operates integrated cement facilities at Sirohi (Rajasthan), Durg (Chhattisgarh), Kalol and Surat (Gujarat) and Jharli (Haryana).

Birla Corp
Birla Corporation, a large cement company, saw net profit plunge 84 per cent to Rs 4 crore on higher expenses. Net sales declined 10 per cent to Rs 797 crore in the September quarter compared to Rs 887 crore in the year-ago period. Total expenses increased 17.6 per cent in Q2 while finance cost almost doubled to Rs 105 crore during the quarter under review.

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Economy & Market

Smart Pumping for Rock Blasting

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SEEPEX introduces BN pumps with Smart Joint Access (SJA) to improve efficiency, reliability, and inspection speed in demanding rock blasting operations.
Designed for abrasive and chemical media, the solution supports precise dosing, reduced downtime, and enhanced operational safety.

SEEPEX has introduced BN pumps with Smart Joint Access (SJA), engineered for the reliable and precise transfer of abrasive, corrosive, and chemical media in mining and construction. Designed for rock blasting, the pump features a large inspection opening for quick joint checks, a compact footprint for mobile or skid-mounted installations, and flexible drive and material options for consistent performance and uptime.

“Operators can inspect joints quickly and rely on precise pumping of shear-sensitive and abrasive emulsions,” said Magalie Levray, Global Business Development Manager Mining at SEEPEX. “This is particularly critical in rock blasting, where every borehole counts for productivity.” Industry Context

Rock blasting is essential for extracting hard rock and shaping safe excavation profiles in mining and construction. Accurate and consistent loading of explosive emulsions ensures controlled fragmentation, protects personnel, and maximizes productivity. Even minor deviations in pumping can cause delays or reduce product quality. BN pumps with SJA support routine maintenance and pre-operation checks by allowing fast verification of joint integrity, enabling more efficient operations.

Always Inspection Ready

Smart Joint Access is designed for inspection-friendly operations. The large inspection opening in the suction housing provides direct access to both joints, enabling rapid pre-operation checks while maintaining high operational reliability. Technicians can assess joint condition quickly, supporting continuous, reliable operation.

Key Features

  • Compact Footprint: Fits truck-mounted mobile units, skid-mounted systems, and factory installations.
  • Flexible Drive Options: Compact hydraulic drive or electric drive configurations.
  • Hydraulic Efficiency: Low-displacement design reduces oil requirements and supports low total cost of ownership.
  • Equal Wall Stator Design: Ensures high-pressure performance in a compact footprint.
  • Material Flexibility: Stainless steel or steel housings, chrome-plated rotors, and stators in NBR, EPDM, or FKM.

Operators benefit from shorter inspection cycles, reliable dosing, seamless integration, and fast delivery through framework agreements, helping to maintain uptime in critical rock blasting processes.

Applications – Optimized for Rock Blasting

BN pumps with SJA are designed for mining, tunneling, quarrying, civil works, dam construction, and other sectors requiring precise handling of abrasive or chemical media. They provide robust performance while enabling fast, reliable inspection and maintenance.With SJA, operators can quickly access both joints without disassembly, ensuring emulsions are transferred accurately and consistently. This reduces downtime, preserves product integrity, and supports uniform dosing across multiple bore holes.

With the Smart Joint Access inspection opening, operators can quickly access and assess the condition of both joints without disassembly, enabling immediate verification of pump readiness prior to blast hole loading. This allows operators to confirm that emulsions are transferred accurately and consistently, protecting personnel, minimizing product degradation, and maintaining uniform dosing across multiple bore holes.

The combination of equal wall stator design, compact integration, flexible drives, and progressive cavity pump technology ensures continuous, reliable operation even in space-limited, high-pressure environments.

From Inspection to Operation

A leading explosives provider implemented BN pumps with SJA in open pit and underground operations. By replacing legacy pumps, inspection cycles were significantly shortened, allowing crews to complete pre-operation checks and return mobile units to productive work faster. Direct joint access through SJA enabled immediate verification, consistent emulsion dosing, and reduced downtime caused by joint-related deviations.

“The inspection opening gives immediate confidence that each joint is secure before proceeding to bore holes,” said a site technician. “It allows us to act quickly, keeping blasting schedules on track.”

Framework agreements ensured rapid pump supply and minimal downtime, supporting multi-site operations across continents

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Concrete

Digital process control is transforming grinding

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Satish Maheshwari, Chief Manufacturing Officer, Shree Cement, delves into how digital intelligence is transforming cement grinding into a predictive, stable, and energy-efficient operation.

Grinding sits at the heart of cement manufacturing, accounting for the largest share of electrical energy consumption. In this interview, Satish Maheshwari, Chief Manufacturing Officer, Shree Cement, explains how advanced grinding technologies, data-driven optimisation and process intelligence are transforming mill performance, reducing power consumption and supporting the industry’s decarbonisation goals.

How has the grinding process evolved in Indian cement plants to meet rising efficiency and sustainability expectations?
Over the past decade, Indian cement plants have seen a clear evolution in grinding technology, moving from conventional open-circuit ball mills to high-efficiency closed-circuit systems, Roller Press–Ball Mill combinations and Vertical Roller Mills (VRMs). This shift has been supported by advances in separator design, improved wear-resistant materials, and the growing use of digital process automation. As a result, grinding units today operate as highly controlled manufacturing systems where real-time data, process intelligence and efficient separation work together to deliver stable and predictable performance.
From a sustainability perspective, these developments directly reduce specific power consumption, improve equipment reliability and lower the carbon footprint per tonne of cement produced.

How critical is grinding optimisation in reducing specific power consumption across ball mills and VRMs?
Grinding is the largest consumer of electrical energy in a cement plant, which makes optimisation one of the most effective levers for improving energy efficiency. In ball mill systems, optimisation through correct media selection, charge design, diaphragm configuration, ventilation management and separator tuning can typically deliver power savings of 5 per cent to 8 per cent. In VRMs, fine-tuning airflow balance, grinding pressure, nozzle ring settings, and circulating load can unlock energy reductions in the range of 8 per cent to 12 per cent. Across both systems, sustained operation under stable conditions is critical. Consistency in mill loading and operating parameters improves quality control, reduces wear, and enables long-term energy efficiency, making stability a key operational KPI.

What challenges arise in maintaining consistent cement quality when using alternative raw materials and blended compositions?
The increased use of alternative raw materials and supplementary cementitious materials (SCM) introduces variability in chemistry, moisture, hardness, and loss on ignition. This variability makes it more challenging to maintain consistent fineness, particle size distribution, throughput and downstream performance parameters such as setting time, strength development and workability.
As clinker substitution levels rise, grinding precision becomes increasingly important. Even small improvements in consistency enable higher SCM utilisation without compromising cement performance.
Addressing these challenges requires stronger feed homogenisation, real-time quality monitoring and dynamic adjustment of grinding parameters so that output quality remains stable despite changing input characteristics.

How is digital process control changing the way grinding performance is optimised?
Digital process control is transforming grinding from an operator-dependent activity into a predictive, model-driven operation. Technologies such as online particle size and residue analysers, AI-based optimisation platforms, digital twins for VRMs and Roller Press systems, and advanced process control solutions are redefining how performance is managed.
At the same time, workforce roles are evolving. Operators are increasingly focused on interpreting data trends through digital dashboards and responding proactively rather than relying on manual interventions. Together, these tools improve mill stability, enable faster response to disturbances, maintain consistent fineness, and reduce specific energy consumption while minimising manual effort.

How do you see grinding technologies supporting the industry’s low-clinker and decarbonisation goals?
Modern grinding technologies are central to the industry’s decarbonisation efforts. They enable higher incorporation of SCMs such as fly ash, slag, and limestone, improve particle fineness and reactivity, and reduce overall power consumption. Efficient grinding makes it possible to maintain consistent cement quality at lower clinker factors. Every improvement in energy intensity and particle engineering directly contributes to lower CO2 emissions.
As India moves toward low-carbon construction, precision grinding will remain a foundational capability for delivering sustainable, high-performance cement aligned with national and global climate objectives.

How much potential does grinding optimisation hold for immediate energy
and cost savings?
The potential for near-term savings is substantial. Without major capital investment, most plants can achieve 5 per cent to 15 per cent power reduction through measures such as improving separator efficiency, optimising ventilation, refining media grading, and fine-tuning operating parameters.
With continued capacity expansion across India, advanced optimisation tools will help ensure that productivity gains are not matched by proportional increases in energy demand. Given current power costs, this translates into direct and measurable financial benefits, making grinding optimisation one of the fastest-payback operational initiatives available to cement manufacturers today.

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Concrete

Refractory demands in our kiln have changed

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Radha Singh, Senior Manager (P&Q), Shree Digvijay Cement, points out why performance, predictability and life-cycle value now matter more than routine replacement in cement kilns.

As Indian cement plants push for higher throughput, increased alternative fuel usage and tighter shutdown cycles, refractory performance in kilns and pyro-processing systems is under growing pressure. In this interview, Radha Singh, Senior Manager (P&Q), Shree Digvijay Cement, shares how refractory demands have evolved on the ground and how smarter digital monitoring is improving kiln stability, uptime and clinker quality.

How have refractory demands changed in your kiln and pyro-processing line over the last five years?
Over the last five years, refractory demands in our kiln and pyro line have changed. Earlier, the focus was mostly on standard grades and routine shutdown-based replacement. But now, because of higher production loads, more alternative fuels and raw materials (AFR) usage and greater temperature variation, the expectation from refractory has increased.
In our own case, the current kiln refractory has already completed around 1.5 years, which itself shows how much more we now rely on materials that can handle thermal shock, alkali attack and coating fluctuations. We have moved towards more stable, high-performance linings so that we don’t have to enter the kiln frequently for repairs.
Overall, the shift has been from just ‘installation and run’ to selecting refractories that give longer life, better coating behaviour and more predictable performance under tougher operating conditions.

What are the biggest refractory challenges in the preheater, calciner and cooler zones?
• Preheater: Coating instability, chloride/sulphur cycles and brick erosion.
• Calciner: AFR firing, thermal shock and alkali infiltration.
• Cooler: Severe abrasion, red-river formation and mechanical stress on linings.
Overall, the biggest challenge is maintaining lining stability under highly variable operating conditions.

How do you evaluate and select refractory partners for long-term performance?
In real plant conditions, we don’t select a refractory partner just by looking at price. First, we see their past performance in similar kilns and whether their material has actually survived our operating conditions. We also check how strong their technical support is during shutdowns, because installation quality matters as much as the material itself.
Another key point is how quickly they respond during breakdowns or hot spots. A good partner should be available on short notice. We also look at their failure analysis capability, whether they can explain why a lining failed and suggest improvements.
On top of this, we review the life they delivered in the last few campaigns, their supply reliability and their willingness to offer plant-specific custom solutions instead of generic grades. Only a partner who supports us throughout the life cycle, which includes selection, installation, monitoring and post-failure analysis, fits our long-term requirement.

Can you share a recent example where better refractory selection improved uptime or clinker quality?
Recently, we upgraded to a high-abrasion basic brick at the kiln outlet. Earlier we had frequent chipping and coating loss. With the new lining, thermal stability improved and the coating became much more stable. As a result, our shutdown interval increased and clinker quality remained more consistent. It had a direct impact on our uptime.

How is increased AFR use affecting refractory behaviour?
Increased AFR use is definitely putting more stress on the refractory. The biggest issue we see daily is the rise in chlorine, alkalis and volatiles, which directly attack the lining, especially in the calciner and kiln inlet. AFR firing is also not as stable as conventional fuel, so we face frequent temperature fluctuations, which cause more thermal shock and small cracks in the lining.
Another real problem is coating instability. Some days the coating builds too fast, other days it suddenly drops, and both conditions impact refractory life. We also notice more dust circulation and buildup inside the calciner whenever the AFR mix changes, which again increases erosion.
Because of these practical issues, we have started relying more on alkali-resistant, low-porosity and better thermal shock–resistant materials to handle the additional stress coming from AFR.

What role does digital monitoring or thermal profiling play in your refractory strategy?
Digital tools like kiln shell scanners, IR imaging and thermal profiling help us detect weakening areas much earlier. This reduces unplanned shutdowns, helps identify hotspots accurately and allows us to replace only the critical sections. Overall, our maintenance has shifted from reactive to predictive, improving lining life significantly.

How do you balance cost, durability and installation speed during refractory shutdowns?
We focus on three points:
• Material quality that suits our thermal profile and chemistry.
• Installation speed, in fast turnarounds, we prefer monolithic.
• Life-cycle cost—the cheapest material is not the most economical. We look at durability, future downtime and total cost of ownership.
This balance ensures reliable performance without unnecessary expenditure.

What refractory or pyro-processing innovations could transform Indian cement operations?
Some promising developments include:
• High-performance, low-porosity and nano-bonded refractories
• Precast modular linings to drastically reduce shutdown time
• AI-driven kiln thermal analytics
• Advanced coating management solutions
• More AFR-compatible refractory mixes

These innovations can significantly improve kiln stability, efficiency and maintenance planning across the industry.

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