Concrete

The government needs to strictly enforce cement usage in rural and urban roads

Published

11 years ago

January 31, 2015

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Faisal Alam, President-Sales & Marketing, Kalyanpur Cement
Overall cement demand will go up which will increase the present capacity utilisation levels from 50-60 per cent to around 80 per cent, says Faisal Alam, President-Sales & Marketing, Kalyanpur Cement. Excerpts from the interview…Which sectors will drive cement demand in 2015?
According to the recent Government of India guidelines, most of the highways and roads will be built using concrete. This should have happened much earlier. If this happens, infrastructure demand will take the lead as is the case in China. The gap between China and India as first and second largest producer of cement in the world is primarily on account of cement being used in roads and bridges in China. The overall specs of the roads is for 100 years or more horizon. Rest of the sectors will grow at 7 to 8 per cent.

What will be the likely demand-supply scenario in 2015?
This will depend on cement usage in roads and bridges. In case of 100 per cent conversion to cement for road and highway building, the overall growth may easily reach double-digit figures. That will lead to demand outstripping supply (at 100 per cent capacity utilisation) but in not less than a year and a half time. We are yet to catch up with developed nations in as far as FAR vs Road width vs height is concerned. The emphasis on low-cost housing will also make a difference if it is well supported by government. This is a more important area than building smart cities.

What is your estimate on the cement prices in 2015 and how will it impact the market?
Cement prices will cross Rs 400 mark per bag across the country in order that cement companies survive in line with rising costs and a huge tax burden.

What is the export/import scenario in 2015 for cement and its raw materials?
Export levels will go up but not at a very large variance than what has been in recent years because I believe Indian cement will be dearer with rupee consolidating against foreign currencies. Raw material import will go up, specially coal and gypsum.

What are the policy initiatives you expect from the government?
The government needs to strictly enforce cement usage in ?all? roads, rural or urban. Improve building laws to encourage sky scrapers on smaller footprints, incentivise low cost housing, reduce interest rates on housing loans and also reduce income tax rates on disposable income.

Increase coal output in the country by bringing in modern technology for higher output of coal. Simultaneously, encourage R&D at premier institutes to substitute usage of coal (gas pipelines?) Better roads are needed. Also encourage washeries so that less ash and more coal is transported. Today, coal is Railways? highest transported commodity followed by steel and cement. Average ash from pit is in the range of 30-40 per cent. Railways is therefore transporting huge amount of ash which is further leading to disposal problems of fly ash at thermal power plants.

Concrete

Shree Digvijay Cement Reports Annual And Quarterly Results

Annual revenue rises as EBITDA expands sequentially

Published

2 days ago

May 5, 2026

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Shree Digvijay Cement Company Limited reported consolidated financial results for the quarter and year ended 31 March 2026, showing higher revenues and improved profitability. Revenue from operations for the quarter was Rs 2,084.7 mn, up from Rs 1,833.4 mn in the prior quarter, while revenue for the year was Rs 7,491.0 mn versus Rs 7,251.5 mn a year earlier. EBITDA for the quarter rose to Rs 251.0 mn from Rs 38.4 mn in the preceding quarter and reached Rs 746.1 mn for the year. Profit after tax for the year was Rs 250.0 mn.

Sales volume for the company s grinding and cement operations was zero point three six four mn t in the quarter and one point four zero three mn t for the year, while traded volumes were zero point zero three mn t in the quarter. EBITDA per tonne improved to Rs637 in the quarter and averaged Rs521 for the year. Under a brand usage, supply and distributorship agreement the company sold 29,928 t of Hi Bond cement, which generated Rs153.6 mn in revenue and Rs20.0 mn in EBITDA during the period.

The company said that it had commenced purchase and distribution of Hi Bond cement effective 19 March 2026 pursuant to the long term distributorship agreement, and that it had paid a refundable security deposit of Rs four bn under the same arrangement. Management indicated that the strategic integration with the Hi Bond network would support future growth and strengthen distribution capabilities. The board cited seasonally higher demand and improved pricing as factors behind the sequential improvement in realisations.

The board recommended a final dividend of Rs one per equity share subject to shareholder approval at the ensuing annual general meeting. The company reiterated focus on sustaining the positive momentum in revenue and margin metrics while integrating the new distributorship, and will continue to monitor market conditions and pricing trends to support further improvement in outcomes.

Concrete

Cement Production Up Eight Point Six Per Cent To 491.4 mn t In FY26

Icra Sees Seven To Eight Per Cent Growth In FY27

Published

3 days ago

May 4, 2026

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Icra reported that cement production volumes rose by eight point six per cent in the financial year 2026 to 491.4 million (mn) metric tonne (t). March output was 48.4 mn t, up four per cent year on year on a high base.

The agency projected that volumes are expected to grow by seven to eight per cent in the current financial year, supported by sustained demand from the housing and infrastructure sectors. Average cement prices were reported to have remained flat in March at Rs 340 per bag on a month on month basis, while prices for FY26 increased by two per cent to Rs 345 per bag year on year.

Among inputs, coal prices declined by 17 per cent year on year to USD 102 per t in April 2026 while petcoke prices rose sharply by 19 per cent month on month and 22 per cent year on year to around Rs 15,800 per t in April. Petcoke was higher by about five per cent year on year in FY26 and diesel prices were reported to have remained steady. Icra noted that coal, petcoke and diesel are expected to trend higher in FY27 and remain exposed to risks from the ongoing West Asia conflict.

The report emphasised that operating margins for Icra’s sample set of companies are estimated to moderate by 200 to 400 basis points (bps) in FY27 on account of a likely increase in input costs, with further downside risks should crude prices rise owing to geopolitical tensions. However, debt protection metrics are projected to remain comfortable and Icra maintained a stable outlook on the Indian cement sector.

Concrete

UltraTech Cement FY26 PAT Crosses Rs 80 bn

Company reports record sales, profit and 200 MTPA capacity milestone

Published

1 week ago

April 29, 2026

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UltraTech Cement reported record financial performance for Q4 and FY26, supported by strong volumes, higher profitability and improved cost efficiency. Consolidated net sales for Q4 FY26 rose 12 per cent year-on-year to Rs 254.67 billion, while PBIDT increased 20 per cent to Rs 56.88 billion. PAT, excluding exceptional items, grew 21 per cent to Rs 30.11 billion.

For FY26, consolidated net sales stood at Rs 873.84 billion, up 17 per cent from Rs 749.36 billion in FY25. PBIDT rose 32 per cent to Rs 175.98 billion, while PAT increased 36 per cent to Rs 83.05 billion, crossing the Rs 80 billion mark for the first time.

India grey cement volumes reached 42.41 million tonnes in Q4 FY26, up 9.3 per cent year-on-year, with capacity utilisation at 89 per cent. Full-year India grey cement volumes stood at 145 million tonnes. Energy costs declined 3 per cent, aided by a higher green power mix of 43 per cent in Q4.

The company’s domestic grey cement capacity has crossed 200 MTPA, reaching 200.1 MTPA, while global capacity stands at 205.5 MTPA. UltraTech also recommended a special dividend of Rs 2.40 billion per share value basis equivalent to Rs 240.