Cement firms to see 21% slump in Q1 Ebitda/tonne: Jefferies

01 Jun 2022 CW Team

With a significant rise in input costs, the cement sector could experience a steep decline in its operating profit per tonne in the first quarter (Q1) of financial year 2022-23 (FY23), compared to a year ago. In fact, the year-on-year decline would be the deepest in the past 10 years.

Jefferies estimated that the average Ebitda/t for this quarter for cement companies under its coverage will decline by around Rs 451 year-on-year/Rs 45 quarter-on-quarter to Rs 958 (the YoY decline would be one of the highest in the past 10 years). Despite revival in volumes, an increase in input costs weighed on margins. International pet coke and coal prices are up 25-30% QoQ for Q1FY23. The brokerage’s analysts expect the increase in energy prices to reflect to some extent in Q1FY23, and its full impact to be felt in Q2FY23.

“We expect cement to report a 21% YoY Ebidta decline for 1QFY23 … the fall reflects lag in passing costs even as volume growth recovers to mid-teens YoY (soft base),” said the brokerage’s analysts in a recent report.

Companies have struggled to pass on the costs, especially those with exposure to the southern markets.

Also Read:
K Lakshmi launches new brand in central and eastern UP
Shree Cement to set up integrated cement unit in Guntur

Infrastructure Urban

09 Sep 2025

Amazon Signs Rs 400 Million Lease for Hooghly Warehouse

Amazon Seller Services, the marketplace division of Amazon Inc., has leased 560,000 sq. ft of warehousing space in West Bengal’s Hooghly district as part of its nationwide expansion of fulfilment infrastructure.The upcoming facility, set to serve as a fulfilment centre (FC), has been pre-leased from Nahar Industrial Enterprises Ltd. As per documents accessed via real estate analytics platform Propstack, the property handover will occur between January and June 2026, with the lease officially commencing on 1 June 2026. The agreement spans a period of 20 years.Amazon will pay a monthly rent of..

GDA to Buy Land for RNE Roads, Clear Maps for Housing

The Ghaziabad Development Authority (GDA) will now directly purchase land from owners for eight major roads under the zonal plan for Raj Nagar Extension (RNE), paving the way for improved road infrastructure and residential development in the area, officials confirmed on Wednesday.Seven of these roads have remained stalled due to land acquisition hurdles, prompting the GDA to approve a proposal for direct purchase. The plan includes five roads with widths of 45 metres each, one 30-metre-wide road, and two roads of 24 metres in width—all integral to the approved zonal plan for RNE.“This dec..

Nisus Acquires Majority Stake in NCCCL for Rs 700 Million

Nisus Finance Services Co Limited has acquired a majority stake in New Consolidated Construction Company Ltd (NCCCL) through its subsidiary, Nisus Finance Projects LLP. The management-led, all-cash buyout includes a Rs 700 million infusion as primary growth capital, aimed at strengthening NCCCL’s balance sheet and driving its expansion across India’s infrastructure landscape.The acquisition represents a strategic milestone in Nisus Finance’s goal to consolidate its urban infrastructure platform. As part of the transition, NCCCL’s Managing Director and CEO Mahesh Mudda will become the P..