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ICR reviews the quarterly results of a few cement manufacturers.

Shree Cement performed exceedingly well beyond expectations. No other cement company will be able to match the number produced by Shree Cement. It has once again proven its ability to deliver operating results irrespective of market dynamics with its change in strategy.

In the view of analysts, the earnings of Shree Cement not merely depends on the market price but are connected with many other contributors of cost and volume. Supply chain is a significant contributor in the cost management. It is observed, Shree Cement has significant opportunities with advent of Internet of Things (IoT) and Artificial Intelligence (AI) in supply chain management. It is able to show the peers on what lies ahead of them. Shree Cement can fundamentally and structurally gap-up its EBITDA trend v/s peers, sustainably. Shree Cement has been able to show the opportunity that exists in managing supply chain despite unhealthy market conditions says Vaibhav Agarwal, Research Analyst at PhillipCapital.

Vaibhav feels with this new focus of Shree Cement, it is the only manufacturer in the sector having a potential to touch EBITDA mark of Rs 1,800 to 2,000 per tonne in the longer term, when the industry is still struggling to be at Rs 1,000 to 1,500 per tonne. In short, the numbers produced by Shree Cement were much above the market exceptions. There may be much more surprises from Shree Cement yet to come. Vaibhav strongly recommends the investors to buy Shree Cement scrip, driven by Shree Cement’s consistent ability to remain sustainable on operating performance, irrespective of market conditions and peer performances. Vaibhav further adds that Shree Cement’s full potential with these new initiatives is yet to unfold. Shree Cement is the only manufacturer in his view which can significantly and structurally redefine its earnings.

Century proves to be a drag
The numbers produced by UltraTech are after adjusting the merger of Century Textiles Cement division assets. EBIDTA was a shed better. Volumes are in line with the market expectations but EBIDTA was lower. However, the Century assets are yet to contribute anything to the numbers – at operating and overall performance. On the other hand, the contribution to Q2 numbers from Century has been negative as reported by Agarwal.

Vaibhav further adds that here is a big structural opportunity for UltraTech. UltraTech, being industry’s undisputed leader in supply chain management, we believe it will be able to turnaround Century’s performance faster than anticipated driven by it’s on the ground efforts on this front. More importantly such turnaround steps will not just be a game changer for UltraTech but in our view, for the industry as it will fundamentally change business methodologies especially in East and Central India in the long run.

Having said that, the next couple of quarters may be a minor drag for UltraTech, especially with Century merger as the process of transition and bringing supply chain efficiencies in acquired assets will be a tough task and UltraTech will need to time to deliver these results. However, once requisite protocols in supply chain are in place and being followed, the changes will be structural and also remain sustainable, in our view.

Vaibhav firmly believes the most important parameter to define earnings profile of any cement manufacturer is supply-chain which is beyond volumes, prices and costs. As one delivers on better supply-chain management, the result is either better prices or lower costs.

Few takeaways: About 14.6 million tonne capacity of Century assets now added to the numbers of UltraTech. Brand transition for all plants except Chhattisgarh unit is to be completed by December 2019. Chhattisgarh unit will continue under the umbrella brand "Birla Gold" for another year or so and later on to be rechristened to UltraTech brands. New brownfield and greenfield projects are coming up in East India. Vaibhav is more optimistic on unfolding the incremental potential rather than demand revival in the present situation.

ACC: EBIDTA margins are better
Based on the analysis carried out by Vivek Maheshwari of CLSA, we appreciate that the overall cement demand declined all across India in the last quarter. The macroeconomic condition is taking a toll on institutional market. The sluggish trend in the infrastructure sector adds to the woes of industry. Pricing volatility and a sharp inventory build-up has impacted the overall realisation. The volume of cement declined marginally by 2 per cent year on year basis but the volume of premium products grew by 8 per cent YOY basis. ACC is yet to take a call on choosing the corporate tax rate and hence there has been no change in the rate this quarter.

Talking about Q3 results, which are much better than the expectations of the analysts in general, the operating EBIDTA grew by 26 per cent YOY basis. The other income was higher than expected. Net earnings rose 46 per cent YOY basis. Blended unit cement realisations declined 5 per cent QoQ to Rs 269 per bag, which was slightly lower. Management is positive in its demand outlook, led by infra and affordable housing. For the current session ACC?s EBIDTA is up 20 percent while net earnings are up 40 per cent YoY.

Vivek raises EPS estimates 3-4 per cent as and lowers cost assumptions. He recommends a BUY rating with an Rs 2,050 target price. A pickup in demand as well as cement pricing is key drivers of the stock price, in his view.

Key highlights about costs: a) Sourcing of Material has been optimised through better supply chain efficiency. b) Reduction in packing cost due to lowering of cost on account of PP granule price.

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Concrete

Cement Makers Reaffirm Commitment to Sustainable Growth

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World Environment Day spotlight on innovation and circularity

On World Environment Day, the Indian cement industry reiterated its commitment to supporting India’s climate ambitions through sustainable manufacturing, resource efficiency and the adoption of cleaner technologies.

The Cement Manufacturers’ Association (CMA) said the sector remains aligned with the Government of India’s Net Zero commitments and is accelerating efforts to reduce its environmental footprint while supporting the country’s infrastructure and development agenda.

Parth Jindal, President, CMA and Managing Director, JSW Cement, said the industry is increasingly adopting cleaner technologies, improving energy efficiency and expanding the use of alternative fuels and raw materials. He also highlighted the growing importance of circular economy practices, where industrial by-products and waste streams from one sector are utilised as resources in another.

“The Indian Cement Industry is aligned to the Government’s commitments on carbon mitigation and is accelerating the adoption of cleaner technologies, resource efficiency and circular economy practices while actively exploring the potential of Carbon Capture, Utilisation and Storage (CCUS) as a critical pathway for deep decarbonisation,” said Jindal.

He added that coprocessing industrial waste and by-products helps conserve natural resources, reduce disposal requirements and lower the environmental footprint across multiple sectors.

According to Jindal, sustainability is no longer limited to manufacturing processes but is increasingly influencing investment decisions, innovation strategies and long-term growth plans within the industry.

Echoing similar views, Dr Raghavpat Singhania, Vice President, CMA and Managing Director, JK Cement, said sustainable development extends beyond emissions reduction and must also focus on responsible resource utilisation and waste minimisation.

“Sustainability in the built environment cannot be measured by emissions alone. It is equally about how efficiently we use resources, how effectively we minimise waste and how responsibly we create the infrastructure that will serve future generations,” said Singhania.

He noted that the cement industry is advancing its sustainability agenda through greater resource efficiency, increased circularity, technological innovation and continuous improvements in manufacturing practices. As a key contributor to India’s infrastructure development, the sector has a critical role to play in balancing economic growth with environmental responsibility.

On the occasion of World Environment Day, industry leaders reaffirmed their commitment to supporting India’s climate goals while delivering the materials required for resilient, durable and sustainable infrastructure.

 

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Concrete

Building a Greener Future Together

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Environmental sustainability requires immediate action, not just long-term commitments and discussions. Recycling, circular economy practices, and technology-driven waste management can help industries reduce environmental impact while supporting sustainable growth.

Author: Jignesh Kundaria, Director and CEO, Fornnax Technology

World Environment Day serves as an important reminder that environmental sustainability can no longer remain confined to discussions, reports, or long-term commitments. The environmental challenges facing the world today demand immediate, measurable, and collective action. Across industries and communities, waste generation continues to outpace our ability to process it responsibly, placing increasing pressure on ecosystems, natural resources, public health, and the well-being of future generations.

One of the most significant shifts required today is a change in how society perceives waste. Rather than being viewed as a material to be discarded, waste must be recognised as a valuable resource that can contribute to both economic growth and environmental protection when managed through the right technologies and systems. This mindset forms the foundation of the circular economy model that countries across the world are increasingly adopting to reduce landfill dependence, recover valuable materials, and create more sustainable industrial ecosystems.

India has made meaningful progress in strengthening awareness around sustainability, recycling, and environmental responsibility over the past decade. Significant efforts are being made to formalise the recycling sector through improved infrastructure, technology adoption, policy implementation, and broader stakeholder participation. These developments are creating a stronger foundation for responsible waste management and resource recovery across the country.

However, achieving long-term environmental impact requires collaboration from all stakeholders. Industries, policymakers, technology providers, and communities must work together with greater accountability to strengthen recycling ecosystems, encourage responsible waste management practices, and create sustainable outcomes through consistent execution rather than temporary interventions.

As someone closely associated with the recycling industry, I firmly believe that technology will play a decisive role in addressing future environmental challenges. Advanced recycling systems have the potential to recover valuable resources, reduce pollution, minimise landfill burdens, and conserve energy, creating a more sustainable future for generations to come. This belief is deeply reflected in Fornnax’s motto, “Committed to Create a Green Future,” which embodies our commitment to building long-term environmental value through innovation and responsible action.

At the same time, technology alone cannot deliver meaningful change. Real progress requires intent, awareness, participation, and a shared sense of responsibility. Sustainable development can only be achieved when innovation is supported by collective action and a genuine commitment to environmental stewardship.

On this World Environment Day, let us move beyond conversations and take meaningful steps towards creating a cleaner, greener, and more sustainable planet. By embracing innovation, strengthening recycling ecosystems, and acting responsibly today, we can create lasting environmental impact and secure a better future for generations to come.

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Concrete

JK Lakshmi Advances LC3 Cement Expansion

Company highlights commercial production and research partnerships

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The meeting reviewed progress in limestone calcined clay cement (LC3) technology and its commercial adoption in India’s cement sector, focusing on low-carbon alternatives to conventional binders. JK Lakshmi Cement noted that limestone calcined clay cement can reduce carbon dioxide emissions by up to 40 per cent compared with conventional cement and said this reduction supports industry decarbonisation. The company highlighted that it was among the first two cement manufacturers in India to move LC3 into commercial production after the Bureau of Indian Standards approved the technology as a cement standard.

Vinita Singhania said the transition of LC3 from research to commercial production reflected collaboration between industry, academia and international institutions. Maya Tissafi acknowledged JK Lakshmi Cement’s role in advancing LC3 adoption in India and its contribution in taking the technology from laboratory trials to commercial implementation. Both representatives underlined the growing relevance of sustainable construction materials as India expands infrastructure and urban development.

The meeting explored continued collaboration with Swiss research institutions such as EPFL, EMPA and ETH Zurich alongside Indian academic partners and development organisations. JK Lakshmi Cement has been associated with the LC3 initiative since 2014 and worked with EPFL, IIT Delhi, IIT Madras, Development Alternatives and Technology and Action for Rural Advancement. The company conducted one of the earliest industrial trials of LC3 and recently announced commercial production of Green Pro LC3 cement from its Jaykaypuram plant in Rajasthan.

India remains the world’s second-largest cement producer and expansion of infrastructure, urbanisation and housing demand continue to support long-term sector growth, increasing interest in low-carbon technologies. The company reported an annual turnover of more than Rupees (Rs) 60 bn and current cement capacity of about 18 million (mn) tonnes (t) per annum, with a target of reaching 30 million (mn) tonnes (t) by 2030. Apart from grey cement, the company also makes ready-mix concrete, gypsum plaster, wall putty, primers, adhesives and fly ash blocks, and both sides concluded on the need for continued collaboration to develop sustainable construction solutions.

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