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

UltraTech Cement FY26 PAT Crosses Rs 80 bn

Company reports record sales, profit and 200 MTPA capacity milestone

Published

3 days ago

April 29, 2026

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UltraTech Cement reported record financial performance for Q4 and FY26, supported by strong volumes, higher profitability and improved cost efficiency. Consolidated net sales for Q4 FY26 rose 12 per cent year-on-year to Rs 254.67 billion, while PBIDT increased 20 per cent to Rs 56.88 billion. PAT, excluding exceptional items, grew 21 per cent to Rs 30.11 billion.

For FY26, consolidated net sales stood at Rs 873.84 billion, up 17 per cent from Rs 749.36 billion in FY25. PBIDT rose 32 per cent to Rs 175.98 billion, while PAT increased 36 per cent to Rs 83.05 billion, crossing the Rs 80 billion mark for the first time.

India grey cement volumes reached 42.41 million tonnes in Q4 FY26, up 9.3 per cent year-on-year, with capacity utilisation at 89 per cent. Full-year India grey cement volumes stood at 145 million tonnes. Energy costs declined 3 per cent, aided by a higher green power mix of 43 per cent in Q4.

The company’s domestic grey cement capacity has crossed 200 MTPA, reaching 200.1 MTPA, while global capacity stands at 205.5 MTPA. UltraTech also recommended a special dividend of Rs 2.40 billion per share value basis equivalent to Rs 240.

Concrete

Towards Mega Batching

Optimised batching can drive overall efficiencies in large projects.

Published

4 days ago

April 28, 2026

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India’s pace of infrastructure development is pushing the construction sector to work at a significantly higher scale than previously. Tight deadlines necessitate eliminating concreting delays, especially in large and mega projects, which, in turn, imply installing the right batching plant and ensuring batching is efficient. CW explores these steps as well as the gaps in India’s batching plant market.

Choose well

Large-scale infrastructure and building projects typically involve concrete consumption exceeding 30,000-50,000 cum per annum or demand continuous, high-volume pours within compressed timelines, according to Rahul R Wadhai, DGM – Quality, Tata Projects.

Considering the daily need for concrete, “large-scale concreting involves pouring more than 1,000–2,000 cum per day while mega projects involve more than 3,000 cum per day,” says Satish R Vachhani, Advanced Concrete & Construction Consultant…

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Concrete

Andhra Offers Discom Licences To Private Firms Outside Power Sector

Policy allows firms over 300 MW to seek distribution licences

Published

5 days ago

April 27, 2026

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The Andhra Pradesh government will allow private firms that require more than 300 megawatt (MW) of power to apply for distribution licences, making the state the first to extend such licences beyond the power sector. The policy targets information technology, pharmaceuticals, steel and data centres and aims to reduce reliance on state utilities as demand rises for artificial intelligence infrastructure.

Approved applicants will be able to procure electricity directly from generators through power purchase agreements, a change officials said will create more competitive tariffs and reduce supply risk. Licence holders will use the Andhra Pradesh Transmission Company (APTRANSCO) network on payment of charges and will not need a separate distribution network initially.

Licences will be granted under the Electricity Act, 2003 framework, with the Central and State electricity regulators retaining authority over terms and approvals. The recent Electricity (Amendment) Bill, 2025 sought to lower entry barriers, enable network sharing and encourage competition, while the state commission will set floor and ceiling tariffs where multiple discoms operate.

Industry players and original equipment manufacturers welcomed the policy, saying competitive supply is vital for large data centre investments. Major projects and partnerships such as those involving Adani and Google, Brookfield and Reliance, and Meta and Sify Technologies are expected to benefit as capacity expands in the state.

Analysts noted India’s data centre capacity is forecast to reach 10 gigawatts (GW) by 2030 and cited International Energy Agency estimates that global data centre electricity consumption could approach 945 terawatt hours by the same year. A one GW data centre needs an equivalent power allocation and one point five times the water, which authorities equated to 150 billion litres (150 bn litres).

Advisers warned that distribution licences will require close regulation and monitoring to prevent misuse and to ensure tariffs and supply obligations are met. Officials said the policy aims to balance investor requirements with regulatory oversight and could serve as a model for other states.