Cement prices to rise in second half of FY22: HDFC Securities report
Cement

Cement prices to rise in second half of FY22: HDFC Securities report

According to the report by HDFC Securities, cement prices are likely to increase during the second half (H2) of FY22 owing to cost inflation.

Cement demand has increased from June 2021 as the Covid-19 pandemic decreases.

The cement demand continues to recover and has supported limited price correction during monsoon, the report says.

According to the report, the prices of cement will continue to rise during H2FY22 as the cost inflation is firming up and has impacted the cement industry. The rising demand and increased consolidation should support the industry's cost pass-through ability.

The report said that the prices of pet coke have increased by 20% quarter-on-quarter basis (QoQ). Imported thermal coal prices have also increased by 33% QoQ. The increasing prices of crude oil have pushed diesel prices by 7% QoQ. The industry has built Rs 80-100 million tonnes input cost inflation and Rs 20-40 million tonnes freight cost rise QoQ.

The brokerage expects aggregate revenue from its coverage to increase by 14% on a year-on-year (YoY) basis on higher volumes in the second quarter (Q2) of FY22.

Image Source

Also read: Cement production to increase by 12% in FY22: ICRA report

According to the report by HDFC Securities, cement prices are likely to increase during the second half (H2) of FY22 owing to cost inflation. Cement demand has increased from June 2021 as the Covid-19 pandemic decreases. The cement demand continues to recover and has supported limited price correction during monsoon, the report says. According to the report, the prices of cement will continue to rise during H2FY22 as the cost inflation is firming up and has impacted the cement industry. The rising demand and increased consolidation should support the industry's cost pass-through ability. The report said that the prices of pet coke have increased by 20% quarter-on-quarter basis (QoQ). Imported thermal coal prices have also increased by 33% QoQ. The increasing prices of crude oil have pushed diesel prices by 7% QoQ. The industry has built Rs 80-100 million tonnes input cost inflation and Rs 20-40 million tonnes freight cost rise QoQ. The brokerage expects aggregate revenue from its coverage to increase by 14% on a year-on-year (YoY) basis on higher volumes in the second quarter (Q2) of FY22. Image Source Also read: Cement production to increase by 12% in FY22: ICRA report

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