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Cement firms to see 21% slump in Q1 Ebitda/tonne: Jefferies

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Ebidta/tonne will decline by around Rs 451 YoY for cement makers in QIFY23

With a significant rise in input costs, the cement sector could experience a steep decline in its operating profit per tonne in the first quarter (Q1) of financial year 2022-23 (FY23), compared to a year ago. In fact, the year-on-year decline would be the deepest in the past 10 years.

Jefferies estimated that the average Ebitda/t for this quarter for cement companies under its coverage will decline by around Rs 451 year-on-year/Rs 45 quarter-on-quarter to Rs 958 (the YoY decline would be one of the highest in the past 10 years). Despite revival in volumes, an increase in input costs weighed on margins. International pet coke and coal prices are up 25-30% QoQ for Q1FY23. The brokerage’s analysts expect the increase in energy prices to reflect to some extent in Q1FY23, and its full impact to be felt in Q2FY23.

“We expect cement to report a 21% YoY Ebidta decline for 1QFY23 … the fall reflects lag in passing costs even as volume growth recovers to mid-teens YoY (soft base),” said the brokerage’s analysts in a recent report.

Companies have struggled to pass on the costs, especially those with exposure to the southern markets.

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Concrete

15th Cement EXPO: A Step Forward in Cement Innovation

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Mumbai

Following the immense success of the 14th Cement EXPO, held on December 14-15, 2023, at the Manekshaw Centre, New Delhi, the next edition of this premier event is set to take place in March 2025. The 15th Cement EXPO will be hosted at Yashobhoomi, Delhi, on 12th and 13th November 2025.

Meanwhile, the Cement Expo Forum 2025 is scheduled for 5th and 6th March 2025 at Taj Krishna in Hyderabad. This exciting 3-in-1 event, organised by FIRST Construction Council (FCC) and Indian Cement Review (ICR), will bring together industry leaders, innovators, and stakeholders to discuss the future of the cement sector.

Building on the Success of the 14th Cement EXPO

The 14th Cement EXPO was widely praised for its strong participation, attracting over 1,500 senior managers and decision-makers from across the cement industry. The event was inaugurated by Dr. Vibha Dhawan, Director General of TERI, and Ali Emir Adiguzel, Founder and Director of the World Cement Association, alongside Pratap Padode, Founder of FIRST Construction Council (FCC). The two-tiered exhibition space featured cutting-edge products and innovations from top companies within the cement industry’s supply chain.

The event also garnered significant support from key government bodies, including the Ministry of Road Transport and Highways, Government e-Marketplace (GeM), and the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry, Government of India (GoI).

Recognition and Excellence in the Cement Industry

The 7th Indian Cement Review Awards celebrated excellence by presenting awards to 11 companies in various categories, recognising their contributions to growth and innovation within the industry. Notably, Parth Jindal, Managing Director of JSW Cement, was honoured with the prestigious Indian Cement Review – Person of the Year Award 2023. Meanwhile, Vinita Singhania, Vice Chairman and Managing Director of JK Lakshmi Cement Ltd, received the Lifetime Achievement Award for her outstanding leadership and contributions to the sector.

A Vision for Sustainability

With the theme of “Driving Sustainability Through Technology,” the 9th Indian Cement Review Conference hosted thought-provoking discussions and presentations, highlighting the industry’s commitment to adopting innovative, sustainable practices. The conference served as a platform for dialogue on the latest technological advancements aimed at transforming the cement sector, addressing key challenges, and fostering growth.

What to Expect from Cement EXPO 2025

The 15th Cement EXPO, along with the 10th Indian Cement Review Conference and the 8th Indian Cement Review Awards, is set to be even bigger and more impactful than the 2023 edition. With an expanded exhibition space, greater participation, and more in-depth discussions, the 2025 event will continue to drive the industry forward. This 3-in-1 event promises to be a pivotal moment in the ongoing transformation of the cement sector.

As the industry evolves, the 15th Cement EXPO 2025 will serve as a crucial platform for showcasing innovations, discussing emerging trends, and forging new partnerships to shape the future of cement and construction.

For more details:

Cement Expo Forum 2025: https://cementexpo.in/forum

15th Cement Expo 2025: https://cementexpo.in/

FOR CONFERENCE SPONSORSHIPS

Sheetal Talreja

Mob: +91 842 2874 030

Email: sheetal@IndianCementReview.com

FOR EXHIBITION/SPONSORSHIPS

Sujoy Gomes

Mob: +91 865 7795 881

Email: Sujoy.g@ASAPPinfoGlobal.com

FOR SPONSORSHIPS

Ratan Rajbhar

Mob: +91 842 2874 021

Email: ratan.r@ASAPPinfoGlobal.com

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BTL EPC strengthens portfolio with MBE-CMT acquisition

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BTL EPC, a flagship of the Shrachi Group, has acquired MBE Coal and Mineral Technology India (MBE-CMT), formerly Humboldt Wedag India. This strategic move integrates MBE-CMT’s expertise in centrifuges, crushers, screens, and feeders, bolstering BTL EPC’s capabilities in bulk material handling and mineral beneficiation. The acquisition includes MBE-CMT’s advanced Kharagpur facility, offering room for expansion and innovation. Managing Director Ravi Todi emphasized that this merger aligns with the company’s vision of growth and diversification, enhancing its manufacturing capabilities and strengthening its product business to deliver greater value to clients.

 

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KPIL secures Rs.10.11bn in new orders

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Kalpataru Projects International Limited (KPIL) has secured Rs.10.11 billion in new orders across transmission and distribution (T&D), railways, and buildings and factories in India and overseas. Manish Mohnot, MD and CEO, highlighted the robust order book exceeding Rs.173 billion, driving sustainable growth. “These achievements further bolster our confidence in achieving sustainable and profitable growth, driven by our robust expertise and leadership in the market,” he said.

 

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