Concrete

Sharp rise in input cost dents cement firmsâ€™ profitability

Published

5 years ago

March 5, 2021

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A significant increase in input costs has resulted in a steady increase in cement prices across India over the current quarter. However, the rise in retail prices is unlikely to benefit cement companies in the short term. In fact, cement manufacturers are likely to see an impact on their profitability during the quarter, say analysts tracking the sector.

According to research agency ICRA, cement companies have already undertaken price hikes to the tune of around 7 per cent on average year-on-year (3 per cent-8 per cent month-on-month) during March 2021 due to the increase in input costs. ??his hike is driven by the increase in the input costs, primarily power and fuel expenses and freight expenses over the last few months. Further, the prices are likely to largely sustain in the near term supported by the healthy rural demand and the significant uptick in infrastructure activity,??it said in a report.

Power and fuel, and freight expenses account for 50-55 per cent of the total costs for cement manufacturers and the cost of production is likely to be higher by 3-4 per cent year-on-year during the current quarter. Coal prices have also increased from $49 per tonne in September 2020 to $88 per tonne in February 2021, and $84 per tonne in March 2021.Pet coke, another key input resource for cement, has seen prices reach Rs 12,600 per tonne in March 2021 from Rs 8,000 per tonne in September 2020. In the fourth quarter of FY21, these prices have been higher by 73 per cent year-on-year and 29 per cent quarter-on-quarter.

The increase in the power and fuel expenses caused by higher pet coke prices and the rise in freight expenses due to higher diesel prices has resulted in a decline in cement companies??operational profit margins by 8.7 per cent compared to the previous quarter. This figure has been declining since the second quarter of the previous year??alling 7.6 per cent quarter-on-quarter in Q2 FY21 and a 9 per cent quarterly fall in Q3 FY21.

??hile the cement prices are likely to largely sustain driven by the significant uptick in the demand, the higher input costs due to the increasing crude oil prices are likely to result in moderation of PBIDTA/MT??With the decline in OPBIDTA/MT, the debt coverage metrics are expected to witness marginal deterioration in FY2022 – TD/OPBIDTA to 1.8x times from 1.6x times and interest cover to 6.4x times from 7.0x times in FY2021,??the ICRA report said.

Concrete

Niraj Cement JV Wins Railway and Metro Contracts

Two orders worth over Rs 1.64 billion boost infrastructure portfolio

Published

3 days ago

December 11, 2025

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Niraj Cement Structurals (JV) has secured two major contracts from the Northeast Frontier Railway (NF Railway) and the Mumbai Metropolitan Region Development Authority (MMRDA), strengthening its position in large-scale infrastructure development.

The first contract, valued at Rs 815.2 million, has been awarded by NF Railway. It involves the construction of multiple-span 12.20-metre PSC slab underpasses, a major bridge (No. 727), retaining and guide walls, embankments and one minor bridge along the proposed UP and Down line near Deepor Beel. The project covers Km 163/00 to 164/200 between Azara and Kamakhya stations and forms part of the New Bongaigaon–Goalpara Town–Kamakhya (NBQ–GLPT–KYQ) railway doubling programme.

The second contract, worth Rs 826.6 million, has been awarded by MMRDA for constructing a foot overbridge (FOB) equipped with a travellator to improve connectivity between the SGMC monorail station and the Mahalaxmi metro and suburban railway stations.

The two projects underscore the company’s technical capabilities in both transportation infrastructure and environmentally sensitive construction, further strengthening its portfolio in key railway and urban mobility developments.

Concrete

Peddapalli MP Seeks Clear Timelines for Rs 42.10 Bn Projects

Peddapalli MP Gaddam Vamshi Krishna has urged the Union Government to specify execution timelines for major infrastructure projects worth Rs 42.10 billion in his constituency.

Published

3 days ago

December 11, 2025

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Peddapalli MP Gaddam Vamshi Krishna has called on the Centre to provide definitive timelines for a series of sanctioned infrastructure works that he said are essential for the region’s economic progress. Speaking in the Lok Sabha, he stressed that many approved projects remain stalled without clear implementation schedules, limiting their potential impact on connectivity and employment.

A key pending work is the Peddapalli–Manuguru Railway Line, a 137 km stretch linking Peddapalli with Manuguru in Bhadradri Kothagudem district. Although the line has received required approvals and special project status, the execution schedule has not yet been announced. The project is expected to support freight efficiency, improve coal logistics, and strengthen local job creation.

Extending his appeal beyond physical infrastructure, the MP urged the Centre to consider including Peddapalli in the India Semiconductor Mission, citing the district’s industrial ecosystem, skilled workforce, and readiness to support advanced manufacturing.

By pressing for structured timelines, Krishna emphasised the need for coordinated planning and timely execution to advance the constituency’s long-term development goals.

Concrete

IndiaAI, Gujarat Govt Host Regional Conclave Ahead of 2026 AI Summit

A regional pre-summit event in Gandhinagar recently gathered leaders to advance AI for good governance.

Published

3 days ago

December 11, 2025

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The IndiaAI Mission under the Ministry of Electronics and Information Technology, along with the Government of Gujarat and IIT Gandhinagar, convened a Regional Pre-Summit Event at Mahatma Mandir, Gandhinagar. The initiative is part of the build-up to the India–AI Impact Summit 2026, scheduled for 15–20 February 2026 at Bharat Mandapam, New Delhi.

The conclave brought together senior policymakers, technology leaders, researchers and industry practitioners to examine how AI can accelerate economic, digital and social transformation across sectors. The programme focused on the overarching theme of ‘AI for Good Governance: Empowering India’s Digital Future’.

The inaugural session featured key dignitaries including Bhupendrabhai Rajnikant Patel, Chief Minister of Gujarat; Harsh Rameshbhai Sanghavi, Deputy Chief Minister of Gujarat; Arjunbhai Devabhai Modhwadia, Minister for Science & Technology, Government of Gujarat; Manoj Kumar Das, Chief Secretary, Government of Gujarat; Abhishek Singh, Additional Secretary, MeitY and Director General, NIC; and Ponugumatla Bharathi, Secretary, Department of Science & Technology, Government of Gujarat.

High-impact keynote sessions led by national and global experts from MeitY, Bhashini, Google Cloud, Microsoft, IBM Research, NVIDIA, Oracle and AWS examined themes including AI in governance, public service delivery, urban development, rural transformation, healthcare, agriculture, fintech and multilingual accessibility enabled through Bhashini.
Delegates also visited an Experience Zone curated by IndiaAI and DST Gujarat, which showcased AI solutions across governance, agriculture, health and industry.

By convening government, industry and academic stakeholders, the conclave aimed to strengthen India’s AI ecosystem through frameworks that prioritise trust, scalability and public interest. Insights generated from the event will contribute directly to the agenda and outcomes of the India–AI Impact Summit 2026.