Concrete

Sharp rise in input cost dents cement firmsâ€™ profitability

Published

6 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

India’s Core Sector Growth Eases to 4.8 Per Cent in August

Cement, electricity and iron ore offset declines in other sectors

Published

13 hours ago

September 26, 2026

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India’s output across eight core industries grew 4.8 per cent year-on-year in August 2026, easing from the revised 5.0 per cent growth recorded in July, according to provisional data released by the Ministry of Commerce and Industry. The Index of Core Industries (ICI), which tracks eight key infrastructure sectors, accounts for a significant share of the Index of Industrial Production.

Cement production led the expansion with growth of 12.5 per cent, followed by electricity at 11.6 per cent and iron ore at 5.5 per cent. Steel output increased 3.4 per cent, while refinery products rose 2.6 per cent during the month. The ministry identified cement, electricity and iron ore as the main contributors to overall core sector growth in recent months.

The gains were partly offset by contractions in several sectors. Coal output declined 3.8 per cent year-on-year, while natural gas and crude oil production fell 4.9 per cent and 3.6 per cent, respectively. Fertiliser production recorded the sharpest decline, falling 12.4 per cent in August.

Cumulative growth in the ICI during April-August 2026 stood at 4.3 per cent, compared with 2.4 per cent in the corresponding period a year earlier. Steel output increased 4.1 per cent during the period, while cement and electricity production grew 10.3 per cent and 9.6 per cent, respectively.

Coal, natural gas, crude oil, refinery products and fertilisers recorded negative cumulative growth during April-August. Their contractions stood at 3.2 per cent, 4.4 per cent, 4.1 per cent, 1.4 per cent and 6.7 per cent, respectively. The ministry also revised the final ICI for July to 120.8 from the earlier provisional estimate of 121.2, resulting in a downward revision in the month’s growth rate to 5.0 per cent from 5.4 per cent.

Concrete

Jammu Division Begins First Cement Rail Traffic to Anantnag

Cement Loading From Kathua for Anantnag to Begin on September 14

Published

6 days ago

September 21, 2026

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Jammu Railway Division has placed an indent for the first movement of cement by rail within the division, linking Shaheed Captain Sunil Kumar Choudhary Kathua Railway Station with Anantnag Railway Station. Loading for the consignment is scheduled to begin on September 14.

Concrete

Hard Worker Wins Three Honours at Kyoorius Design Awards

Ramco Cements’ brand secures Grand Prix and two Blue Elephant honours.

Published

6 days ago

September 21, 2026

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The Ramco Cements Limited’s construction chemicals brand, Hard Worker, has won three honours at the Kyoorius Design Awards 2026, including the Grand Prix – Grey Elephant in the Design in Action category.

The brand also secured two Blue Elephant honours, one for Design in Action and another for Packaging, recognising the design approach behind its brand identity and packaging.

Launched in 2025, Hard Worker entered the construction chemicals segment with the brand promise, “Hard-working products for hardworking people.” Its visual identity uses animals and birds to represent product benefits. The camel represents the water-retention capability of Hard Worker Eco Plaster, while the cheetah represents the speed and performance of Hard Worker Block Fix.

The visual language has been extended across packaging, retail, communication, literature, digital platforms and other brand touchpoints. Hard Worker uses bold colours, distinctive animal illustrations and simple visual storytelling to communicate product benefits across markets and audiences, including construction workers and applicators.

“For Hard Worker, design was never an afterthought. It was fundamental to how we wanted to build the brand. In a category that is largely functional, we wanted to create a brand that people could recognise, understand and remember instantly. The Kyoorius recognition is a wonderful validation of this design-led approach,” said Mr. AV Dharmakrishnan, CEO, The Ramco Cements Limited.

Mr. Balaji K. Moorthy, Executive Director – Marketing, Ramco Cements said “In a category where communication has traditionally been product-led and functional, we wanted Hard Worker to stand apart by making design an integral part of the brand experience. From the distinctive animal-led packaging to our communication across consumer and trade touchpoints, every element was designed to make the brand more memorable and the product benefits easier to understand.”

Within its first 12 months, Hard Worker crossed Rs 3.5 bn in sales. The latest recognition follows six honours secured by the brand’s campaign at the Kyoorius Creative Awards earlier in 2026, including the Grey Elephant Grand Prix for its Eco Plaster film.

The Kyoorius Design Awards recognise outstanding design work in India’s visual communications sector across multiple categories and platforms. The 2026 awards were announced on 12 September in Goa.

The Ramco Cements Limited is part of the Ramco Group and operates across cement and allied building-material solutions. Hard Worker is its construction chemicals brand, offering solutions across key construction applications.