Cement makers may log operating profit margin of 20% in FY2021

Crisil expects cement makers to report operating profitability of around 20 per cent in FY2021 as demand is expected to recover, driven by the infrastructure and affordable housing sectors. Stable realisations and benign input prices are also likely to lead to recovery in demand, as per CRISIL. According to the firm, operating profitability in the current fiscal is expected to touch a seven-year high of around 21 per cent, which translates to a 350-400 basis points increase from the year-ago level.