Cement industry records highest ever OPBIDTA per mt in Q1 FY22

16 Sep 2021 CW Team

The all-India cement production decreased by 12% quarter on quarter (QoQ) to 82 million mt in Q1 FY 2022, owing to the state-wise lockdowns due to the pandemic, which had an impact on demand in April-May 2021. However, it was higher by 54% year on year (YoY) because of the lower base in April 2020 on the back of lockdown.

In 4M FY 2022, the production is less by 2% compared to pre-covid levels. ICRA anticipates the all-India cement production to record a rise of about 12% in FY 2022, aided by the pent-up demand, the pickup in infrastructure activity, and rural housing demand.

ICRA, Corporate Ratings, Assistant Vice President & Sector Head, Anupama Reddy, told the media that the sales amounts of ICRA’s sample one observed a drop of 20% QoQ due to the impact of the second wave of Covid-19, however, higher by 44% YoY. The net sales realisations saw an increase of 4% YoY and 5% QoQ on the back of the price hikes led by cement firms in Q1 FY 2022.

While the cement company observed cost-side pressures, in Q1 FY 2022, the companies report the highest ever OPBIDTA per mt at Rs 1,372 per mt, exceeding the prior peak of Rs 1,306 per mt obtained in Q1 FY 2021, majorly backed by the higher net sales realisations and the cost optimisation measures initiated. The major input prices observed an improvement in Q1 FY 2022 by 26%, 26%, and 9% individually on a YoY basis.

While the OPBIDTA per mt in Q1 FY 2022 exceeded the prior peaks, the elevated and increasing input prices could exert pressure on operating margins, which are expected to decrease by 200 to 230 bits per second (bps) in FY 2022, said Reddy.

Image Source

Also read: Indian cement industry to add 80 mt cement capacity through FY24

Cement companies in India recorded the highest ever OPBIDTA per mt at Rs 1,372 per mt in quarter 1 (Q1) FY 2022, surpassing the previous peak of Rs 1,306 per mt achieved in Q1 FY 2021, despite cost side pressures, said ICRA Limited. The all-India cement production decreased by 12% quarter on quarter (QoQ) to 82 million mt in Q1 FY 2022, owing to the state-wise lockdowns due to the pandemic, which had an impact on demand in April-May 2021. However, it was higher by 54% year on year (YoY) because of the lower base in April 2020 on the back of lockdown. In 4M FY 2022, the production is less by 2% compared to pre-covid levels. ICRA anticipates the all-India cement production to record a rise of about 12% in FY 2022, aided by the pent-up demand, the pickup in infrastructure activity, and rural housing demand. ICRA, Corporate Ratings, Assistant Vice President & Sector Head, Anupama Reddy, told the media that the sales amounts of ICRA’s sample one observed a drop of 20% QoQ due to the impact of the second wave of Covid-19, however, higher by 44% YoY. The net sales realisations saw an increase of 4% YoY and 5% QoQ on the back of the price hikes led by cement firms in Q1 FY 2022. While the cement company observed cost-side pressures, in Q1 FY 2022, the companies report the highest ever OPBIDTA per mt at Rs 1,372 per mt, exceeding the prior peak of Rs 1,306 per mt obtained in Q1 FY 2021, majorly backed by the higher net sales realisations and the cost optimisation measures initiated. The major input prices observed an improvement in Q1 FY 2022 by 26%, 26%, and 9% individually on a YoY basis. While the OPBIDTA per mt in Q1 FY 2022 exceeded the prior peaks, the elevated and increasing input prices could exert pressure on operating margins, which are expected to decrease by 200 to 230 bits per second (bps) in FY 2022, said Reddy. Image Source Also read: Indian cement industry to add 80 mt cement capacity through FY24

Infrastructure Urban

17 Sep 2025

DCPC Prepares for Special Campaign 5.0 with Focus on E-Waste

The Department of Chemicals and Petrochemicals (DCPC), Ministry of Chemicals and Fertilisers, is gearing up for Special Campaign 5.0, to be held from 2nd to 31st October 2025. The initiative will focus on e-waste disposal as per MoEFCC’s E-Waste Management Rules 2022, space optimisation, and enhancing workplace efficiency across field offices.Special Campaign 4.0, conducted between October 2023 and October 2024, delivered notable results in record management, grievance redressal, scrap disposal, and cleanliness drives.Key outcomes of Special Campaign 4.0Records management: 2,443 physical fil..

Real Estate

17 Sep 2025

BlackRock India Leases 1.4 Lakh Sq Ft in Bengaluru

BlackRock Services India, the domestic arm of global asset manager BlackRock, has leased 1.4 lakh sq ft of office space at IndiQube Symphony in Bengaluru, according to Propstack data. The 10-year deal is valued at around Rs 4.10 billion.The lease, among the largest transactions in India’s co-working sector, highlights the growing preference of global institutions for flexible office providers. The agreement, commencing October 1, 2025, covers ground plus five floors in KNG Tower 1 at Ashoknagar, MG Road — one of Bengaluru’s prime commercial hubs.As per the lease document, BlackRock will ..

Infrastructure Transport

17 Sep 2025

L&T Bags Rs 25–50 Bn Order for Mumbai-Ahmedabad Bullet Train Track Works

Larsen & Toubro’s (L&T) Transportation Infrastructure business has secured an order valued between Rs 25 crore and Rs 50 billion from the National High Speed Rail Corporation Limited (NHSRCL) for the Mumbai-Ahmedabad High Speed Rail (MAHSR) corridor.The contract, Package T1, involves the design, supply, construction, testing, and commissioning of 156 route km of high-speed ballastless track on a Design-Build Lump Sum Price basis. The stretch runs from Mumbai’s Bandra-Kurla Complex to Zaroli village in Gujarat and includes 21 km of underground track and 135 km of elevated viaduct.Se..