Cement production finally turns the corner

03 Dec 2020 Editorial Team

Domestic manufacturers’ capacity utilisation has been around 47% during 7M-FY21 as units have been operating at sub-par capacities along with staggered shifts but has increased from it being 45% during H1-FY21. Given the fall in demand and companies looking to conserve their capital/cash flows, cement manufacturers had cut down or deferred capex. Although lately, some players have been announcing capex expansion of capex guidance plans.

Cement demand is closely linked to the overall economic growth of the housing and infrastructure sector. Increasing demand from affordable housing and construction work for other government infrastructure projects, cheap housing loans and the need for space, non-trade segment gaining momentum with the resumption of construction work of institutional infrastructure projects drive the demand for cement.

A significant factor which aids the growth of this sector is the ready availability of limestone and coal. Due to various cost rationalisation measures and overhead controls undertaken by cement manufacturers, there has been an increase in the operating profit margins (OPM), net profit margins (NPM) and interest coverage ratio during Q2-FY21 and H1-FY21. Cost of raw materials too declined by 20.3% during H1-FY21 due to the overall fall in the prices of limestone but has increased by 3.7% on a y-o-y basis and by 44.8% on a q-o-q basis. The overall sales revenue has increased by 6% during Q2-FY21 y-o-y but has declined sharply by 11.6% during H1-FY21 y-o-y.

Despite registering a negative growth rate in the previous seven months, cement production increased by 2.8% in October, the latest report from CARE Ratings says. The report cites major reasons as increase in demand with the pickup in infrastructure projects that had been stalled due to the nationwide lockdown, receding of the monsoons and return of several migrant workers. Domestic cement production has fallen by 21.3% during 7M-FY21 compared with the 15% growth and 0.6% degrowth in production achieved during 7M-FY19 and 7M-FY20.Domestic manufacturers’ capacity utilisation has been around 47% during 7M-FY21 as units have been operating at sub-par capacities along with staggered shifts but has increased from it being 45% during H1-FY21. Given the fall in demand and companies looking to conserve their capital/cash flows, cement manufacturers had cut down or deferred capex. Although lately, some players have been announcing capex expansion of capex guidance plans. Cement demand is closely linked to the overall economic growth of the housing and infrastructure sector. Increasing demand from affordable housing and construction work for other government infrastructure projects, cheap housing loans and the need for space, non-trade segment gaining momentum with the resumption of construction work of institutional infrastructure projects drive the demand for cement. A significant factor which aids the growth of this sector is the ready availability of limestone and coal. Due to various cost rationalisation measures and overhead controls undertaken by cement manufacturers, there has been an increase in the operating profit margins (OPM), net profit margins (NPM) and interest coverage ratio during Q2-FY21 and H1-FY21. Cost of raw materials too declined by 20.3% during H1-FY21 due to the overall fall in the prices of limestone but has increased by 3.7% on a y-o-y basis and by 44.8% on a q-o-q basis. The overall sales revenue has increased by 6% during Q2-FY21 y-o-y but has declined sharply by 11.6% during H1-FY21 y-o-y.

Infrastructure Urban

04 May 2026

Jyoti Structures FY26 profit rises 56.5%

Jyoti Structures (JSL) recently reported strong financial results for the quarter and year ended 31 March 2026, driven by disciplined execution, cost management and steady progress across its order book.For Q4 FY2025-26, total income rose 44.2 per cent to Rs 2.41 billion from Rs 1.67 billion in Q4 FY2024-25. EBITDA increased 58.6 per cent to Rs 237 million, while EBITDA margin improved by 89 basis points to 9.84 per cent. Profit before tax grew 53.3 per cent to Rs 188.5 million, and net profit rose 51.9 per cent to Rs 181.4 million.For FY2025-26, total income grew 53.1 per cent to Rs 7.72 bill..

Infrastructure Energy

04 May 2026

Cat BEPU to Power Doppstadt Separator at IFAT 2026

Caterpillar’s Cat Battery Electric Power Unit (BEPU) has been selected by Doppstadt to power its SWS 6 Spiral Shaft Separator, which will be showcased for the first time at IFAT 2026 in Munich, Germany, from 4–7 May.The compact plug-and-play BEPU is designed to replace a diesel engine within the same space, using the same mounting locations and relative machine position. It integrates the battery, motor, inverter, onboard charging, cooling and controls, enabling OEMs to electrify existing chassis platforms without extensive redesign.Caterpillar and Cat dealer Zeppelin Power Systems have be..

Infrastructure Urban

04 May 2026

VECV sales rise 6.9% in April 2026

VE Commercial Vehicles, a joint venture between Volvo Group and Eicher Motors, recorded sales of 7,318 units in April 2026, compared to 6,846 units in April 2025, registering 6.9 per cent growth. The total included 7,159 units under the Eicher brand and 159 units under the Volvo brand.Eicher branded trucks and buses reported sales of 7,159 units during the month, up 6.6 per cent from 6,717 units in April 2025. In the domestic commercial vehicle market, Eicher sales rose 8.6 per cent to 6,797 units from 6,257 units a year earlier.Exports declined 21.3 per cent, with VECV recording 362 units in ..