Cement companies report volume growth in Q1 FY25
Cement

Cement companies report volume growth in Q1 FY25

Leading cement manufacturers have reported single-digit volume growth for the June quarter, despite facing pressure on their topline due to declining prices. Major companies like UltraTech, Ambuja Cements, ACC, Shree Cements and Dalmia Bharat saw volume increases ranging from 3% to 9%, along with improved capacity utilisation.

However, cement prices continued to be a challenge. The average all-India cement price was approximately Rs 348 per 50 kg bag in June 2024, down about 3% year-on-year but slightly higher than Rs 335 per bag in May 2024. For the first two months of FY25, the average price was Rs 340 per bag, an 8% decline from the previous year. This compares to Rs 365 per bag in FY24 and Rs 375 per bag in FY23. Additionally, the intense heatwave and general elections in April-May slowed construction activities.

- UltraTech Cement: Reported a stable consolidated net profit of Rs 16.96 billion for the June quarter, with revenue from operations increasing by 1.87% to Rs 180.69 billion. Volume sales grew by 7% to 31.95 million tonnes (MT). The company has also announced an open offer for India Cements Ltd after acquiring the promoter's stake.

- Ambuja Cements: Achieved a consolidated net profit of Rs 7.89 billion with revenue from operations at Rs 83.11 billion. Consolidated sales volume, including its subsidiary ACC, was 15.8 MT, up 2.6%. Standalone sales volume was 9.3 MT, a 2.2% increase.

- ACC: Reported a 22.46% decline in net profit to Rs 3.61 billion, with revenue from operations marginally down to Rs 51.54 billion. Sales volume increased by 9% to 10.2 MT, marking the highest volume in the last five years.

- Shree Cement: Experienced a 51.31% drop in consolidated net profit to Rs 2.78 billion, though revenue from operations rose by 1.73% to Rs 51.23 billion. Total sales volume increased by 8% to 9.64 MT. Premium products constituted 7.6% of total sales.

-Dalmia Bharat: Recorded a slight decrease in income from operations to Rs 36.21 billion but saw sales volume rise by 6.2% year-on-year to 7.4 MT.

Conversely, companies like JK Lakshmi Cement, Birla Corporation, and India Cements faced volume declines. Birla Corporation saw a slight drop from 4.41 MT to 4.38 MT due to weak prices and sluggish demand. JK Lakshmi Cement?s sales volume fell from 2.53 MT to 2.32 MT.

Looking ahead, cement companies anticipate a boost in demand driven by the housing and infrastructure sectors, supported by a normal monsoon and substantial investments in these areas.

(ET)

Leading cement manufacturers have reported single-digit volume growth for the June quarter, despite facing pressure on their topline due to declining prices. Major companies like UltraTech, Ambuja Cements, ACC, Shree Cements and Dalmia Bharat saw volume increases ranging from 3% to 9%, along with improved capacity utilisation. However, cement prices continued to be a challenge. The average all-India cement price was approximately Rs 348 per 50 kg bag in June 2024, down about 3% year-on-year but slightly higher than Rs 335 per bag in May 2024. For the first two months of FY25, the average price was Rs 340 per bag, an 8% decline from the previous year. This compares to Rs 365 per bag in FY24 and Rs 375 per bag in FY23. Additionally, the intense heatwave and general elections in April-May slowed construction activities. - UltraTech Cement: Reported a stable consolidated net profit of Rs 16.96 billion for the June quarter, with revenue from operations increasing by 1.87% to Rs 180.69 billion. Volume sales grew by 7% to 31.95 million tonnes (MT). The company has also announced an open offer for India Cements Ltd after acquiring the promoter's stake. - Ambuja Cements: Achieved a consolidated net profit of Rs 7.89 billion with revenue from operations at Rs 83.11 billion. Consolidated sales volume, including its subsidiary ACC, was 15.8 MT, up 2.6%. Standalone sales volume was 9.3 MT, a 2.2% increase. - ACC: Reported a 22.46% decline in net profit to Rs 3.61 billion, with revenue from operations marginally down to Rs 51.54 billion. Sales volume increased by 9% to 10.2 MT, marking the highest volume in the last five years. - Shree Cement: Experienced a 51.31% drop in consolidated net profit to Rs 2.78 billion, though revenue from operations rose by 1.73% to Rs 51.23 billion. Total sales volume increased by 8% to 9.64 MT. Premium products constituted 7.6% of total sales. -Dalmia Bharat: Recorded a slight decrease in income from operations to Rs 36.21 billion but saw sales volume rise by 6.2% year-on-year to 7.4 MT. Conversely, companies like JK Lakshmi Cement, Birla Corporation, and India Cements faced volume declines. Birla Corporation saw a slight drop from 4.41 MT to 4.38 MT due to weak prices and sluggish demand. JK Lakshmi Cement?s sales volume fell from 2.53 MT to 2.32 MT. Looking ahead, cement companies anticipate a boost in demand driven by the housing and infrastructure sectors, supported by a normal monsoon and substantial investments in these areas. (ET)

Related Stories

Gold Stories

Next Story
Resources

Schindler named among Forbes’ World’s Best Employers 2026

Schindler has been named among Forbes’ World’s Best Employers 2026, a global ranking recognising companies for their workplace environments.Compiled by Forbes in partnership with Statista, the ranking is based on independent employee feedback, including whether employees would recommend their organisation to friends and family.The company said the recognition reflected its focus on creating a workplace where employees can develop their expertise and build careers. ..

Next Story
Infrastructure Urban

India needs an export-execution mindset: Vishesh Jain

Interview with Vishesh Jain, Founder & CEO, EximpleWhat gaps in India’s global trade ecosystem led you to build Eximple, and what problem did you see businesses struggling with most?Eximple came out of a problem that all three founders had seen from different choke points in the trade ecosystem. India has millions of MSMEs and manufacturers, and many of them can make products that are genuinely competitive on quality. Yet only a small fraction is able to build meaningful international businesses. In our experience, the gap is usually not manufacturing capability; it is the ability to exe..

Next Story
Building Material

Nuvoco reports 13.5% revenue growth in Q2 FY27

Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid re..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code