Price hikes improve cement profitability outlook: CLSA

30 Jun 2021 CW Team

Capital markets and investment group Credit Lyonnais Securities Asia (CLSA) Limited, told the media that the recent price hikes of the cement manufacturers aided the margin growth of the cement companies in FY22.

Cement companies had a consecutive increase in prices in March, April, and May. The current prices of all the Indian blended cement are 5-7% above Q4 FY21.

According to CLSA, the cement sector's profitability outlook has improved after the increases in prices.

It forecasts the industry's Ebitda per tonne will increase 3% year-on-year in FY22. Ebitda is short for earnings before interest, tax, depreciation, and amortization. CLSA expects that by FY24, the industry's profitability will be around 85% for a greenfield project to break even.

Some of the discretionary costs can be returned in FY22. Also, prices of higher commodities like coal, petroleum coke, and diesel are likely to increase. Cash cost per tonne is expected to increase 4% year-on-year in FY22.

For Q4 FY21, cement volumes were 15% higher and improved more than 25% year-on-year, while Ebitda per tonne was 3% up, compared to the previous quarter.

The impact of the second wave of Covid-19 is a key risk factor for the sector, CLSA said.

CLSA expects cement demand to grow 10% year-on-year in FY22 on a low base in FY21. According to the CLSA report, FY23 is likely to become normal before picking up again in FY24, a pre-election year.

Rural Independent Home Builders (IHB) and infrastructure will be the key demand drivers soon, with urban real estate likely to pick up with a lag. The sector's capacity and utilisation are poised to improve.

Image Source

Also read: Cement industry to witness improved demand from July 2021

Also read: Ambuja Cements and ACC bring industry 4.0 to Indian cement sector

Infrastructure Urban

06 Apr 2026

InsideFPV Delivers ₹10 Crore Kamikaze Drone Order Under MoD’s EPR Route

InsideFPV, a Surat-based drone technology manufacturer, has successfully executed a ₹10 crore defence contract to supply indigenous kamikaze drones under the Ministry of Defence’s Emergency Procurement Route (EPR). The company completed the delivery of hundreds of FPV kamikaze drone platforms within a rapid two-month timeframe, highlighting its ability to meet urgent military procurement timelines.The supply orders were fulfilled under the emergency procurement mechanism, which is aimed at fast-tracking acquisitions for immediate operational needs. InsideFPV’s quick execution reflects it..

Vedanta Resources Secures Fitch Upgrade to ‘BB-’, Best Rating Since 2015

Vedanta Resources Limited (VRL), a global player in metals, oil & gas, critical minerals, power and technology, has received a credit rating upgrade from Fitch Ratings, marking its strongest bond rating in over a decade.Fitch has raised Vedanta Resources’ Long-Term Foreign-Currency Issuer Default Rating (IDR) to ‘BB-’ from ‘B+’, while maintaining a Stable Outlook. The agency also upgraded VRL’s senior unsecured rating, along with the ratings of US dollar-denominated bonds issued by Vedanta Resources Finance II Plc and guaranteed by VRL, to ‘BB-’.The upgrade represents Vedan..

NAREDCO NextGen NCR Chapter Launched

The NAREDCO NextGen NCR Chapter was recently launched at Excelerate 2026 in Mumbai, marking a key step towards integrating emerging real estate leaders from the National Capital Region with the national platform. The initiative aims to promote sustainable and responsible urban development through collaboration and knowledge exchange.The event brought together young developers, entrepreneurs, and professionals from across NCR, including Noida, Gurugram, Ghaziabad, Faridabad, Bhiwadi, and Meerut. Discussions focused on urban development, finance, sustainability, innovation, and policy, emphasisi..