Cement volume registers 20 per cent growth recovery in June

With the gradual decrease in the Covid-19 curbs and pre-monsoon surge in demand, cement volume noted an increase of about 20 per cent in June, according to a report by India Ratings. The construction activities affected some parts of the country due to rains in June, resulting in 35-40 per cent YoY growth in the first quarter of FY22 on a low base. In FY21, cement industries saw a significant release in the working capital due to an increase in payables and reduction in inventory, as the companies tried to optimise the funds during the pandemic. The average net working capital decreased by 31 per cent YoY in FY21. The payables increased by 16 per cent YoY, and inventory and receivables declined by 6 per cent YoY and  3 per cent YoY, respectively.