Cement production slumps 12% in Q1 FY22: ICRA report

17 Sep 2021 CW Team

Cement production declined 12% to 82 million tonne (mt) in April-June FY21-22 against the previous quarter as Covid-19 induced lockdowns in several states affected demand, according to an ICRA report.

The output was 54% higher, helped by a lower base on account of nationwide lockdown in April 2020 year-on-year (YoY), the ICRA said.

The cement production in 4M FY2022 is lower by 2% against pre-Covid levels, it said.

Though ICRA anticipates total production in the country to increase by 12% in the current FY, supported by factors like pent-up demand, pick-up in infrastructure activity, and rural housing demand.

ICRA Assistant Vice President & Sector Head, Corporate Ratings Anupama Reddy said that the sales volumes of ICRA's sample witnessed a fall of 20% QoQ due to the impact of the second wave of Covid-19, however, higher by 44% YoY. The net sales realisations observed an increase of 4% YoY and 5% QoQ on the back of the cost hikes taken by cement companies in June quarter 2021-22.

These price hikes are majorly driven by the increase in input costs, mainly power and fuel and freight expenses over the last few months.

While the industry observed cost side pressures, the companies report the highest ever OPBIDTA per mt at Rs 1,372 per mt in Q1 FY22, exceeding the previous peak of Rs 1,306 per mt achieved in Q1 FY2021, Reddy said.

The raw material prices rise due to higher additive prices such as fly ash and inward freight prices due to a rise in diesel costs and the rise in the power and fuel price per mt was due to the increase in coal and pet coke costs. In the June quarter, the coal costs rose by 154% YoY and the pet coke costs by 98% YoY.

Image Source

Also read: Cement prices in August fell by 3% to Rs 328 per 50 kg

Infrastructure Energy

25 Jun 2026

Centre Prioritising Energy Security With Coal Gasification

Union minister for Coal and Mines G Kishan Reddy said the Centre is prioritising energy security through a strategic shift to coal gasification and has announced incentives totalling Rs 460 billion (bn) to support the effort. He said more than 35 companies will start coal gasification activities in India within two months and that the government is encouraging firms that bring technology to close the domestic technology gap. The minister described the initiative as aimed at reducing import dependence and developing indigenous capacity. India has the fifth-largest coal reserve in the world, and..

BHEL and Coal India Invest Rs 250 bn in Odisha Gasification

Bharat Heavy Electricals (BHEL) and Coal India (CIL) are jointly investing Rs 250 billion in a coal gasification project in Odisha, with the Prime Minister laying the foundation stone in Jharsuguda. Union Coal and Mines Minister G Kishan Reddy described the initiative as a transformative shift in coal utilisation that will open industrial avenues for the state. The project moves coal beyond conventional power generation to industrial feedstocks. Coal gasification will convert coal into synthesis gas, a versatile feedstock for chemicals, fertilisers and synthetic fuels, and the technology is ex..

BCCL Hands Over Dugdha Coal Washery To JSW Steel

Bharat Coking Coal has handed over the Dugdha Coal Washery to JSW Steel, marking the first coal washery asset monetisation under the Ministry of Coal's asset monetisation programme. The handover took place in the presence of senior officials from Bharat Coking Coal Ltd, JSW Steel and JSW Energy. The washery has a capacity of two million tonnes per annum (mn t per annum), and its transfer is intended to introduce private sector practices into coal beneficiation operations. The monetisation is aimed at modernising coal sector assets, improving operational efficiency and enhancing resource utilis..