Cement demand to sustain: India Ratings and Research

31 Mar 2021 CW Staff

According to an India Ratings and Research (Ind-Ra) report, Cement demand growth is expected to continue in Q4 FY21.

The agency pointed out the aggregate sale volumes of listed cement companies grew 9% year-on-year (YoY) in Q3 FY21.

This trend, Ind-Ra cited, was led by the continued momentum in the rural segment and some traction in infrastructure.

The strong performance in Q3 FY21 restricted the volume decline at 6% YoY in 9M FY21. Given the low Covid-impacted March 2020 base, Ind-Ra expects continued volume growth in Q4 FY21, resulting in an overall decline of just around 2% YoY for FY21.

According to the agency, the eastern region is likely to clock growth in FY21, while the central and north have also witnessed a smooth recovery.

The report stated that the recovery in the southern region has been slower, given its higher exposure to institutional sales and a prolonged monsoon, though exceptions such as NCL Industries Limited (NCL) and Deccan Cements Limited witnessed double digit growth in 9M FY21.

Notwithstanding some recovery Q3 FY21 onwards, the western region would decline the sharpest in FY21, given the highest incidence of Covid-19 within the country.

Besides, Ind-Ra said capex completions in FY21 delayed due to Covid-19, the bulk of the expected additions for the year would come on stream only in Q4 FY21.

Ind-Ra expects capacities of 12.7 million tonne (mt) to be added in Q4 of FY21 (9M FY21: 5.2 mt). However, Ind-Ra estimates the effective capacity addition during the year at around 10 mt, resulting in less than 65% capacity utilisations due to the demand impact. The listed universe would continue to report higher utilisations than the overall industry average.

On the rising input prices, the agency said that per coke prices hit $125 per mt in March 2021 and are likely to be almost 60% YoY higher in Q4 FY21, while coal price, which started increasing from September 2020, is likely to be around 30% YoY higher. The report also said diesel prices are likely to be 20-25% higher YoY basis in Q4 FY21.

Image Source

Also read: Cement production finally turns the corner

Also read: Cement demand expected to rise by up to 20% in fiscal 2022: ICRA

According to an India Ratings and Research (Ind-Ra) report, Cement demand growth is expected to continue in Q4 FY21. The agency pointed out the aggregate sale volumes of listed cement companies grew 9% year-on-year (YoY) in Q3 FY21. This trend, Ind-Ra cited, was led by the continued momentum in the rural segment and some traction in infrastructure. The strong performance in Q3 FY21 restricted the volume decline at 6% YoY in 9M FY21. Given the low Covid-impacted March 2020 base, Ind-Ra expects continued volume growth in Q4 FY21, resulting in an overall decline of just around 2% YoY for FY21. According to the agency, the eastern region is likely to clock growth in FY21, while the central and north have also witnessed a smooth recovery. The report stated that the recovery in the southern region has been slower, given its higher exposure to institutional sales and a prolonged monsoon, though exceptions such as NCL Industries Limited (NCL) and Deccan Cements Limited witnessed double digit growth in 9M FY21. Notwithstanding some recovery Q3 FY21 onwards, the western region would decline the sharpest in FY21, given the highest incidence of Covid-19 within the country. Besides, Ind-Ra said capex completions in FY21 delayed due to Covid-19, the bulk of the expected additions for the year would come on stream only in Q4 FY21. Ind-Ra expects capacities of 12.7 million tonne (mt) to be added in Q4 of FY21 (9M FY21: 5.2 mt). However, Ind-Ra estimates the effective capacity addition during the year at around 10 mt, resulting in less than 65% capacity utilisations due to the demand impact. The listed universe would continue to report higher utilisations than the overall industry average. On the rising input prices, the agency said that per coke prices hit $125 per mt in March 2021 and are likely to be almost 60% YoY higher in Q4 FY21, while coal price, which started increasing from September 2020, is likely to be around 30% YoY higher. The report also said diesel prices are likely to be 20-25% higher YoY basis in Q4 FY21. Image Source Also read: Cement production finally turns the corner Also read: Cement demand expected to rise by up to 20% in fiscal 2022: ICRA

Infrastructure Transport

07 Apr 2026

Tunnelling Begins for Thane, Borivali twin tunnel project

Tunnelling work has commenced for the 11.84-km Thane–Borivali Twin Tunnel, set to be India’s longest urban road tunnel, marking a key milestone in Mumbai’s infrastructure development.As per a post shared by Mumbai Metropolitan Region Development Authority on social media platform X, the tunnel boring machine (TBM) ‘Nayak’—the country’s largest single-shield hard rock TBM for an urban tunnel—was launched by Devendra Fadnavis on Tuesday. The event was attended by Eknath Shinde and Sunetra Pawar, among other dignitaries. A second TBM, ‘Arjuna’, is expected to be launched so..

Infrastructure Transport

07 Apr 2026

Large Format Store Planned At M G Road Metro Station

M G Road station in Bengaluru is set to host the city’s first large-format commercial and experience space, with planning led by Bangalore Metro Rail Corporation Limited. BMRCL has invited proposals to develop and operate a central business district destination at the Purple?Pink Line interchange. The plan positions the station as a commercial hub designed to serve a broad commuter base across the city. The proposal is part of a broader effort to activate transit nodes commercially. Tender documents set a minimum monthly rental of Rs 0.944 million (mn), inclusive of GST, for the large-format..

Infrastructure Energy

07 Apr 2026

Government Cancels Auction Of Eleven Critical Mineral Blocks

The government has cancelled the auction of 11 critical and strategic mineral blocks after receiving a poor investor response and failing to attract a sufficient number of qualified bidders. The decision represents a setback to plans to ramp up domestic exploration and production of critical minerals amid global supply chain disruptions and rising demand for materials used in clean energy and advanced technologies. The mines ministry issued an annulment notice setting out the reasons for the cancellations. The annulment notice indicated that the auction process for five mineral blocks was canc..