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Earnings of cement firms may recover from September

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A report by Religare Research shows that the earnings of cement companies would recover only from the second half of 2013-14 (from September 2013) when demand for cement rises and these firms regain pricing power.

Therefore, the firm expects earnings of cement companies to remain under pressure during Apr-June quarter and Jul-Sep quarter.

The report attributes muted prospect for earnings of cement companies during these two quarters to lacklustre demand and muted realisations.

The topline of cement firms may decline 4 percent on a year-on-year basis and EBITDA may fall 29 percent and profit after tax by a whopping 32 percent in the June quarter, the report expects.

Volumes declined for most companies except those with a presence in South India. Some pick-up in cement prices in the latter half of Q1 would help minimise the fall in realisations quarter on quarter QoQ (avg), Religare Research Analyst Mihir Jhaveri said in the report.

Volume of firms operating in North or West India may fall sharply, the report expects. Following a weak March, prices failed to pick up in April due to subdued demand.

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Concrete

CCU testbeds in Tamil Nadu

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Tamil Nadu is set to host one of India’s five national carbon capture and utilisation (CCU) testbeds, aimed at reducing CO2 emissions in the cement industry as part of the country’s 2070 net-zero goal, as per a news report. The facility will be based at UltraTech Cement’s Reddipalayam plant in Ariyalur, supported by IIT Madras and BITS Pilani. Backed by the Department of Science and Technology (DST), the project will pilot an oxygen-enriched kiln capable of capturing up to two tonnes of CO2 per day for conversion into concrete products. Additional testbeds are planned in Rajasthan, Odisha, and Andhra Pradesh, involving companies like JK Cement and Dalmia Cement. Union Minister Jitendra Singh confirmed that funding approvals are underway, with full implementation expected in 2025.

Image source:https://www.heavyequipmentguide.ca/

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Concrete

JSW Cement gears up for IPO

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JSW Cement has set the price range for its upcoming initial public offering(IPO) at US$1.58 to US$1.67 per share, aiming to raise approximately US$409 million. As reported in the news, around US$91 million from the proceeds will be directed towards partially financing a new integrated cement plant in Nagaur, Rajasthan. Additionally, the company plans to utilise US$59.2 million to repay or prepay existing debts. The remaining capital will be allocated for general corporate purposes.

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Concrete

Cement industry to gain from new infrastructure spending

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As per a news report, Karan Adani, ACC Chair, has said that he expects the cement industry to benefit from the an anticipated US$2.2tn in new public infrastructure spending between 2025 and 2030. In a statement he said that ACC has crossed the 100Mt/yr cement capacity milestone in April 2025, propelling the company to get closer to its ambitious 140Mt/yr target by the 2028 financial year. The company’s capacity corresponds to 15 per cent of an all-India installed capacity of 686Mt/yr.

Image source:https://cementplantsupplier.com/cement-manufacturing/emerging-trends-in-cement-manufacturing-technology/

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