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

05 Nov 2025

TBO Tek Q2 Profit Climbs 12%, Revenue Surges 26% YoY

TBO Tek Limited one of the world’s largest travel distribution platforms, reported a solid performance for Q2 FY26 with a 26 per cent year-on-year increase in revenue to Rs 5.68 billion, reflecting broad-based growth and improving profitability.The company recorded a Gross Transaction Value (GTV) of Rs 8,901 crore, up 12 per cent YoY, driven by strong performance across Europe, MEA, and APAC regions. Adjusted EBITDA before acquisition-related costs stood at Rs 1.04 billion, up 16 per cent YoY, translating into an 18.32 per cent margin compared to 16.56 per cent in Q1 FY26. Profit after tax r..

Northern Graphite, Rain Carbon Secure R&D Grant for Greener Battery Materials

Northern Graphite Corporation and Rain Carbon Canada Inc, a subsidiary of Rain Carbon Inc, have jointly received up to C$860,000 (€530,000) in funding under the Canada–Germany Collaborative Industrial Research and Development Programme to develop sustainable battery anode materials.The two-year, C$2.2 million project aims to transform natural graphite processing by-products into high-performance, battery-grade anode material (BAM). Supported by the National Research Council of Canada Industrial Research Assistance Programme (NRC IRAP) and Germany’s Federal Ministry for Economic Affairs a..

Antony Waste Q2 Revenue Jumps 16%; Subsidiary Wins Rs 3,200 Cr WtE Projects

Antony Waste Handling Cell Limited (AWHCL), a leading player in India’s municipal solid waste management sector, announced a 16 per cent year-on-year increase in total operating revenue to Rs 2.33 billion for Q2 FY26. The growth was driven by higher waste volumes, escalated contracts, and strong operational execution.EBITDA rose 18 per cent to Rs 570 million, with margins steady at 21.6 per cent, while profit after tax stood at Rs 173 million, up 13 per cent YoY. Revenue from Municipal Solid Waste Collection and Transportation (MSW C&T) reached Rs 1.605 billion, and MSW Processing re..