Higher input costs to push cement prices to all- time high in FY22

13 Dec 2021 CW Team

High input costs are expected to push cement retail prices to an all-time high of Rs 400 per bag in FY22.

The main inputs used in the sector are coal and diesel. According to rating agency Crisil, after rising by an average of Rs 10 to 15 per bag since August, another rise of Rs 15 to 20 is likely in the coming months.

Moreover, cement manufacturers' earnings before interest, taxes, depreciation, and amortisation (EBITDA) are expected to fall by Rs 100-150 per tonne in FY22.

According to the rating agency this fiscal year, cement sales are expected to increase 11 to 13% year over year, albeit from a low base. This will largely mitigate the impact of cost pressure on cash accruals while also maintaining credit profiles. The analysis by the agency covers 17 cement companies, accounting for 75% of the total market share.

Crisil Research Director Isha Chaudhary said that as the impact of Covid-19 fades, demand for cement will pick up across all segments, including infrastructure, housing, and industry.

Cement demand grew by more than 20% in the first half of this fiscal year but should moderate to 3 to 5% in the second half due to a high base effect, translating to 11 to 13% growth for this fiscal year.

South India saw the largest increase of Rs 54 per bag in October compared to the previous month, followed by the central region with Rs 20 per bag. North India saw a Rs 12 increase, while west India saw a Rs 10 increase.

Crisil Associate Director Ankit Kedia told the media that while the cost pressure may ease over time as coal and diesel prices fall from their October highs, it will take two to three quarters for this to be reflected in the cost of production.

As a result, cement producers' operating profitability, or Ebitda per tonne, is expected to fall by Rs 100-150, or 300-400 basis points, this fiscal. Absolute profits, on the other hand, will be unaffected because the higher volume will offset the impact of margin moderation.

Image Source

Also read: Cement prices to surge on the back of rising coal costs
Also read: Cement firms in India increase cement costs as input prices inflate

High input costs are expected to push cement retail prices to an all-time high of Rs 400 per bag in FY22. The main inputs used in the sector are coal and diesel. According to rating agency Crisil, after rising by an average of Rs 10 to 15 per bag since August, another rise of Rs 15 to 20 is likely in the coming months. Moreover, cement manufacturers' earnings before interest, taxes, depreciation, and amortisation (EBITDA) are expected to fall by Rs 100-150 per tonne in FY22. According to the rating agency this fiscal year, cement sales are expected to increase 11 to 13% year over year, albeit from a low base. This will largely mitigate the impact of cost pressure on cash accruals while also maintaining credit profiles. The analysis by the agency covers 17 cement companies, accounting for 75% of the total market share. Crisil Research Director Isha Chaudhary said that as the impact of Covid-19 fades, demand for cement will pick up across all segments, including infrastructure, housing, and industry. Cement demand grew by more than 20% in the first half of this fiscal year but should moderate to 3 to 5% in the second half due to a high base effect, translating to 11 to 13% growth for this fiscal year. South India saw the largest increase of Rs 54 per bag in October compared to the previous month, followed by the central region with Rs 20 per bag. North India saw a Rs 12 increase, while west India saw a Rs 10 increase. Crisil Associate Director Ankit Kedia told the media that while the cost pressure may ease over time as coal and diesel prices fall from their October highs, it will take two to three quarters for this to be reflected in the cost of production. As a result, cement producers' operating profitability, or Ebitda per tonne, is expected to fall by Rs 100-150, or 300-400 basis points, this fiscal. Absolute profits, on the other hand, will be unaffected because the higher volume will offset the impact of margin moderation. Image Source Also read: Cement prices to surge on the back of rising coal costs Also read: Cement firms in India increase cement costs as input prices inflate

Infrastructure Transport

11 May 2026

Shivraj Chouhan Launches PMGSY IV and Announces Package for Madhya Pradesh

Union Minister Shivraj Singh Chouhan launched the Pradhan Mantri Gram Sadak Yojana (PMGSY) IV at Bhairunda in Sehore district during the 25 year celebrations and announced a development package for Madhya Pradesh. The programme was organised by the Union Ministry of Rural Development and attended by Chief Minister Dr Mohan Yadav, ministers of state, state ministers, legislators and senior officials from the centre and the state. The minister said the central government under the Prime Minister is committed to strengthening rural livelihoods through improved connectivity, housing and women's in..

Infrastructure Urban

11 May 2026

DMR Engineering Reports FY 25-26 Financial Results

DMR Engineering reported its half year results for the financial year ended 31 March 2026 and published full year figures on a standalone basis. Standalone revenue from operations decreased by 2.01 per cent year-over-year to Rs 102.58 million (mn), while profit after tax declined by 43.94 per cent to nine point five six mn, leaving a profit after tax margin of nine point zero five per cent. Earnings per share stood at Rs zero point nine two, a fall of 44.71 per cent year-over-year. The company attributed part of the decline to one-off provisioning for bad debts and additional financing charges..

Infrastructure Urban

11 May 2026

Atlanta Electricals Posts Strong FY26 Growth And Debt Free Finish

Atlanta Electricals reported audited consolidated results for the quarter and year ended 31 March 2026. The company recorded significant year-on-year revenue growth driven by capacity ramp-up at new facilities and higher utilisation at legacy plants. The announcement summarised operating improvements and strategic milestones achieved during the year. For Q4 the company reported revenue of Rs 7.48 bn and for FY26 revenue of Rs 18.52 bn, representing robust growth versus the prior year. EBITDA in Q4 was Rs. 1.49 bn and Rs. 3.44 bn for the full year, with margins expanding to 20 per cent in the q..