Concrete

Cement industry to witness improved demand from July 2021

Published

5 years ago

October 19, 2021

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CARE Rating states that a double-digit cement volume growth seems unlikely at present for FY22, considering the uncertainty for the constantly evolving Covid situation in the country. However, it also states that the profitability for cement players expects to remain healthy during FY22, considering the factors such as expected higher volumes and continuing pricing power enjoyed by cement companies which are likely to balance the cost pressures considerably. In terms of debt, most of the cement companies will be seen to continue their focus on strengthening their balance sheet during FY22. Moreover, report says that profits for FY22 will remain moderate due to increasing input costs for pet coke, diesel, coal, and packing materials, etc.

Today, the economic conditions of our country remain volatile. Considering this into account, the unlocking process that was earlier predicted for May 2021, has now been pushed to July 2021. This has affected the overall demand for cement for Q1FY22. The second wave came with a lot of uncertainties and shattered the overall demand during the last quarter of FY21. On the one hand, we see that the supply constraints are low because of the reopening of operations for the cement manufacturing companies; however, with a higher rate of infection in the rural areas, the demand for cement from rural got weaker.

CARE Ratings expects that for FY22, the domestic cement production may grow by around 4 to 7 per cent y-o-y after two consecutive years of de-growth against the initial estimate of 11-14 per cent. Demand for cement will directly depend on factors like the government?? push and spending towards infrastructure creation and development, pent-up urban demand, and continuing rural demand. However, the severity of ongoing pandemic will have direct impact on the timelines for demand revival for the cement industry.

Looking at Q1FY21, which was severely hit by the pandemic, the industry witnessed a swift recovery wherein domestic cement production reached 88 per cent of pre-Covid levels (i.e., 88 per cent of Q2FY20, states CARE Rating report. It further reports that during Q2FY21 and for Q3FY21, production was 96 per cent of the corresponding period the previous year. Monthly domestic cement reached pre-Covid levels during March 2021 and was approximating to March 2019 levels. Overall, the domestic cement production has fallen by 12 per cent during FY21 vis-?-vis FY20 as against the initial estimate of de-growth of 25-30 per cent made in April 2020.

For FY22, CARE Ratings estimates its entire portfolio of investment-grade cement companies will report stable performance with the aggregate rated debt of around Rs 23,964 crore. Most cement companies will be focusing on strengthening their balance sheets. However, it also states that the profitability for cement players is expected to remain moderate during FY22, due to increasing input costs especially for pet coke, diesel, coal, and packing materials, etc. Furthermore, CARE Rating also states that the liquidity for a majority of the CARE-rated investment grade portfolio is likely to remain strong or adequate in FY 2022.

Some of the key drivers identified by CARE Rating are:

Positives:

Increased capital outlay towards infrastructure creation by 26 per cent to Rs 5.54 lakh crore
Enhanced outlay of Rs 1,18,101 crore for MoRTH of which Rs 1,08,230 crore is for capital.
Central counterpart funding to various metros aggregating to Rs 88,059 crore
Proposals to further incentivise and boost affordable housing.
Pent up urban demand and continuing rural demand.

Negatives:

Slow pick up of demand with ongoing Covid II
Increase in input costs
Excess capacities

Way ahead

For FY22, CARE Ratings estimates its entire portfolio of investment grade cement companies with aggregate rated debt of around Rs 23,964 crore to report stable performance. Although the profitability for cement players is expected to moderate during FY22 owing to increasing input costs especially for pet coke, diesel, coal and packing materials, etc, the impact of the same on cash accruals is envisaged to be less, backed by higher volumes and stable prices. In terms of debt, most of the cement companies are envisaged to continue their focus on strengthening their balance sheet during FY22. Furthermore, liquidity for majority of the CARE-rated investment grade portfolio is likely to remain strong or adequate for FY22 supported by high cash balances, un-utilised or minimally utilised working capital funding lines and healthy cash flows.

Courtesy: CARE Ratings

Concrete

Cement Margins to Erode as Energy Costs Rise: CRISIL

CRISIL warns of 150–200 bps margin decline this fiscal

Published

2 days ago

April 17, 2026

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Crisil Intelligence (CRISIL) released a report on April 13, 2026, indicating Indian cement manufacturers face margin erosion of 150–200 basis points this fiscal, reducing operating margins to between 16 per cent and 18 per cent. The firm noted that this represents a reversal from the prior year when margins expanded by 260–280 basis points. The analysis attributed the shift to rising input costs despite steady demand.

The report said that power and fuel, which typically account for about 26–28 per cent of production cost, are expected to increase by 10–12 per cent year on year, driven by higher prices for crude oil, petroleum coke and thermal coal. Brent crude was assessed as likely to trade between $82 and $87 per barrel, and industrial diesel prices rose by 25 per cent in March, raising logistics and procurement expenses. Such increases have therefore heightened cost pressures across the value chain.

Producers plan to raise selling prices by one–three per cent, which would put the average retail price of a cement bag at around Rs355–Rs360, according to the report. CRISIL’s director Sehul Bhatt was cited as saying that these hikes will at best offset a four–six per cent rise in production costs, leaving little room for higher profitability. The report added that intense competition and continual capacity additions constrain the extent to which firms can pass on costs.

Demand conditions remain supportive, with CRISIL projecting volume growth of six point five–seven point five per cent this fiscal on the back of accelerated infrastructure projects and steady industrial and commercial consumption. Nonetheless, the pace of recovery is sensitive to developments in West Asia, the speed of government infrastructure execution and monsoon performance. The agency noted that any further escalation in energy prices or delays in project execution would widen margin pressures.

Overall, the sector will continue to grow but with compressed margins as energy cost inflation outpaces the limited ability to raise prices. Investors and policymakers will therefore monitor both input cost trajectories and policy measures aimed at alleviating supply chain constraints.

Concrete

Haver & Boecker Niagara to showcase solutions at Hillhead

Focus on screening tech, diagnostics and quarrying efficiency

Published

2 days ago

April 17, 2026

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Haver & Boecker Niagara will showcase its mineral processing technologies at Hillhead 2026, scheduled from June 23–25 in Buxton, UK.

At Stand PA3, the company will present its end-to-end solutions including screeners, screen media and advanced diagnostics, with a focus on improving efficiency, uptime and throughput for aggregates producers.

Highlighting its screen media portfolio, the company will feature Ty-Wire media with hybrid design offering up to 80 per cent more open area, alongside FLEX-MAT® solutions designed to enhance wear life and throughput while reducing blinding and clogging.

The showcase will also include its PULSE Diagnostics suite, comprising vibration analysis, condition monitoring and impact testing, aimed at assessing equipment health and preventing unplanned downtime.

Commenting on the event, Martin Loughran, Sales Manager, UK & Ireland, said, “Hillhead presents an excellent opportunity for us to demonstrate how we deliver innovative technologies along with long-term service and technical support.”

The company will also highlight its Niagara F-Class vibrating screen, designed to reduce structural vibration and improve operational reliability under demanding conditions.

The participation reflects Haver & Boecker Niagara’s focus on supporting quarrying operations with advanced screening solutions and predictive maintenance technologies.

Concrete

Siyaram Recycling Secures Rs 21.03 mn Order From Anurag Impex

Domestic Fixed Cost Contract To Be Executed Within Seven Days

Published

4 days ago

April 15, 2026

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Siyaram Recycling Industries Limited (Siyaram Recycling) has informed the stock exchange that it has secured a purchase order for brass scrap honey from Anurag Impex. The company submitted the intimation on 10 April 2026 from Jamnagar and requested the filing be taken on record. The filing was made under the provisions of regulation 30 of the SEBI listing regulations and accompanying circular. The intimation referenced the SEBI circular dated 13 July 2023 and included an annexure detailing the terms.

The order carries a fixed cost value of Rs 21.03 million (mn) and is to be executed domestically within seven days. The contract was described as a fixed cost engagement and the customer was identified as Anurag Impex. The announcement specified that the order size contributes a short term consideration to the company. Owing to the brief execution window, logistics and dispatch were expected to be prioritised.

The filing clarified that neither the promoter group nor group companies have any interest in the purchaser and that the transaction does not constitute a related party transaction. Details were provided in an annexure and the document was signed by the managing director, Bhavesh Ramgopal Maheshwari. The company referenced compliance with SEBI disclosure requirements in its notification. The notice indicated that no related party approvals were required owing to the nature of the transaction.

The order is expected to provide a modest near term revenue inflow and to be processed within the stated execution window given the nature of the product and the fixed cost terms. Management indicated the contract will be executed in accordance with standard operational procedures and accounting recognition at completion. The development signals continuing demand in the secondary metals market for brass scrap.