Concrete

Core sectors register notable improvement in Sept 2020

Published

4 years ago

October 19, 2021

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The eight core sectors registered a notable improvement in September 2020 recording a marginal fall of 0.8 per cent compared with negative growth of (-) 7.3 per cent in August 2020 and (-)5.1 per cent in the corresponding month last year. This recovery in the core sector has been on account of double digit growth in the coal segment and positive growth in the electricity segment for the first time in the last seven months. Positive growth recorded in coal, steel and electricity does indicate that the unlock programme has had a positive impact on these three segments. Moreover, a low base effect has also led to a perceptible pick-up in September 2020. Despite the sharp recovery, the core sector index has declined for the seventh consecutive month. The oil segments continue to record negative growth along with the cement and fertilisers segment.

There has been an improvement in the estimate for August wherein the fall is (-)7.3 per cent as against the earlier estimate of (-)8.5 per cent. During April-September 2020, the core sector output has contracted by 8 per cent as against a positive growth of 1.3 per cent during the same period of FY20, which can be ascribed to the coronavirus pandemic induced nation-wide lockdown that brought production activities to a near standstill. All sectors barring fertilizers registered de-growth in industrial output during the first half of FY21.

Key highlights:

l Coal production recorded its highest growth in the new series, registering a double digit growth of 21.2 per cent reflective of resumption of industrial activities and higher thermal power demand. A negative base (-20.5 per cent in September 2019) also supported the growth in coal production.

l Crude oil production contracted by 6 per cent in September 2020 compared with a negative growth of (-)6.3 per cent in August 2020 and (-)5.3 per cent in the corresponding month last year. This is the 34th consecutive month in which crude oil production has recorded a contraction. This fall in production can be ascribed to technical mishaps such as unavailability of drilling equipment or installation of new platforms, closure of wells due to less offtake because of the COVID-19 coupled with limitations and restriction in movement of onshore field operations.

l Natural gas production recorded a negative growth of (-)10.6 per cent in September, the 16th consecutive month of decline. This fall can be attributed to restricted off-take by major consumers and temporary closure of gas-wells in western off-shores.

l Refinery production, having high weightage in eight core, contracted by (-)9.5 per cent in September but registering an improvement over the previous month (-19.5 per cent in August). This is the seventh consecutive month in which there has been negative growth in this segment. The improvement on MoM levels can be ascribed to further unlocking of the economy, dropping of lockdown restrictions, and improvement in the capacity utilisation to 85 per cent in September (78 per cent in August). However, it continues to remain negative reflective of absence of revival in the transport segment.

l Output of steel sector grew by 0.9 per cent in September, its first positive growth after 6 consecutive months of negative growth. This corroborates the picture revealed by some of the steel companies which have seen good demand especially from the construction and auto sector.

l Cement production continues to record negative growth and has fallen by (-)3.5 per cent in September. However there has been a sharp improvement in this segment compared with the previous months during the fiscal. Robust increase in construction activity following returning back of labour to construction activities can be a key reason for this improvement.

l Output of fertilizers fell marginally by (-)0.3 per cent in September compared to 7.3 per cent growth in August and 5.5 per cent growth in the corresponding period last year.

l Electricity production rose to seven-month high of 3.7 per cent in September after six previous months of sustained negative growth. This improvement reflects higher industrial and business activity and a similar pattern is witnessed in coal as well.

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The sharp improvement in the core sector output is encouraging and collates well with the higher consumer spending seen in early October. A low base effect in the next month and the further unlocking of the economy is likely to push this growth into positive territory in the next month. The negative growth in the oil segment will further narrow in the coming months as the unlock process becomes more prevalent in the country. IIP growth for this month may be expected to be between -2-5 per cent.

Courtesy: CARE Ratings

ABOUT THE AUTHOR:

Sushant Hede, Associate Economist at CARE Ratings. Email: sushant.hede@careratings.com | Tel: +91-22-6837 43406

Disclaimer: This report is prepared by CARE Ratings Ltd. CARE Ratings has taken utmost care to ensure accuracy and objectivity while developing this report based on information available in public domain. However, neither the accuracy nor completeness of information contained in this report is guaranteed. CARE Ratings is not responsible for any errors or omissions in analysis/inferences/views or for results obtained from the use of information contained in this report and especially states that CARE Ratings has no financial liability whatsoever to the user of this report.

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Concrete

Cement Margins to Erode as Energy Costs Rise: CRISIL

CRISIL warns of 150–200 bps margin decline this fiscal

Published

3 hours 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

3 hours 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

2 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.