Economy & Market

Cement firms may face strain on profitability

Published

4 years ago

October 14, 2021

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Rating agency ICRA expects cement companies to suffer from strain on their profitability in the coming quarter because of weak demand and the hike in rail freight charges in February 2013.

The government announced a slew of measures in the Union Budget 2013-14 to provide a fillip to infrastructure and housing demand such as additional interest deduction of up to Rs 1 lakh on housing loan, enhancement in provisions under Rural Housing Fund and improving funding of infrastructure projects.

In order to boost fund flow to infrastructure sector, the government encouraged the setting up of infrastructure debt funds, issuance of tax-free infrastructure bonds, credit enhancement by IIFCL.

Besides, it set up regulatory authority to address the problems faced by road projects, planned award of 3,000 km highway projects and extension of 80IA benefits for power projects by one year.

Although the rating agency expect these measures announced to support demand for cement in the long term, in the short-term cement demand may be driven by uptick in construction activities and government spending.

It may be noted that weak demand for cement post July 2012 reduced the overall growth in all-India cement production to 5.6 percent during 2012-13 from 6.7 percent in the previous year.

Concrete

Shree Cement reports 2025 financial year results

Published

3 days ago

June 17, 2025

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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/

Concrete

Rekha Onteddu to become director at Sagar Cements

Published

3 days ago

June 17, 2025

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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/

Concrete

India’s cement consumption set to rise

Published

3 days ago

June 17, 2025

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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/