Cement firms report strong volume growth amidst realisation challenges
Cement

Cement firms report strong volume growth amidst realisation challenges

Cement companies experienced robust double-digit volume growth in the previous quarter due to strong domestic demand, according to data from 42 firms. Despite this, limited improvement in realisations and higher-than-expected raw material costs resulted in a mixed performance. Net profit for the quarter improved by 5.8% year-on-year (y-o-y), but declined 12% sequentially. The year-on-year profit before interest and tax increased by 14.4%, while sequentially it declined by 7.5%. Realisations dropped by 1% sequentially on average, impacting operating performance despite the volume growth. Average cement prices per 50kg bag also saw a decline. Cement companies' performance slightly missed expectations due to stagnant profitability and lower-than-anticipated cost reductions. While the average Ebitda per tonne improved slightly, it was still lower by 7.8% compared to the previous year.

Challenges persist in the current quarter as construction activities slow down post-monsoon. Analysts highlight the importance of cement price stabilisation for future earnings support. Despite the obstacles, analysts remain positive about strong volume growth in the upcoming fiscal year and closely monitor cement price trends for future developments. The correction in blended fuel costs provides a potential support factor for manufacturers' earnings.

Cement companies experienced robust double-digit volume growth in the previous quarter due to strong domestic demand, according to data from 42 firms. Despite this, limited improvement in realisations and higher-than-expected raw material costs resulted in a mixed performance. Net profit for the quarter improved by 5.8% year-on-year (y-o-y), but declined 12% sequentially. The year-on-year profit before interest and tax increased by 14.4%, while sequentially it declined by 7.5%. Realisations dropped by 1% sequentially on average, impacting operating performance despite the volume growth. Average cement prices per 50kg bag also saw a decline. Cement companies' performance slightly missed expectations due to stagnant profitability and lower-than-anticipated cost reductions. While the average Ebitda per tonne improved slightly, it was still lower by 7.8% compared to the previous year. Challenges persist in the current quarter as construction activities slow down post-monsoon. Analysts highlight the importance of cement price stabilisation for future earnings support. Despite the obstacles, analysts remain positive about strong volume growth in the upcoming fiscal year and closely monitor cement price trends for future developments. The correction in blended fuel costs provides a potential support factor for manufacturers' earnings.

Next Story
Technology

AirBrick Infra Sets Rs 1 billion Target, Expands to Dubai and Tier-II Cities

AirBrick Infra, one of India’s fastest-growing AI-led commercial interior design and build firms, has announced a sales order target of Rs 1 billion for FY 2025–26. The projection represents a 50 per cent growth over the previous fiscal year and reflects rising demand, increased repeat business, and the company's robust tech-first delivery model.  Now in its third year of operations, AirBrick continues its rapid scale-up, having successfully delivered over 70 projects spanning 3 lakh sq ft in FY 2023–24. FY 2024–25 witnessed the onboarding of several Fortune 500 clients, sett..

Next Story
Resources

Virtusa Foundation Powers Green Education Drive in Bengaluru

The Virtusa Foundation, CSR arm of digital engineering and technology leader Virtusa Corporation, has announced key infrastructure and mobility initiatives at the Ramakrishna Mission, Shivanahalli, Bengaluru. The launch marks the inauguration of a 16-room residential facility for lady teachers and the deployment of two solar-powered electric buses, underscoring Virtusa’s commitment to its core pillars of Education, Environment and Empowerment (3Es).  Located on the forest fringe near Bannerghatta National Park, the initiative supports tribal and underserved communities, complementi..

Next Story
Infrastructure Urban

Godrej Enterprises Drives India’s Smart Green Logistics Shift

As India accelerates its transformation into a global manufacturing and logistics hub, Godrej Enterprises Group (GEG) is taking the lead with its smart, sustainable intralogistics solutions. Through its Material Handling Equipment (MHE) and Storage Solutions businesses, GEG is redefining operational efficiency in modern warehouses and factories using IoT, automation, and AI. GEG has consistently maintained a 20–25 per cent market share in the intralogistics sector over the past three years. Today, over 37 per cent of GEG’s revenues come from its Good & Green portfolio, and its net..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?