Cement volumes likely to grow by 7-8% on all-round demand

01 Sep 2022

Cement volumes are expected to grow by 7-8 per cent in FY2023 to around 388 million tonnes, aided by demand from housing, both rural and urban, and the infrastructure sector, according to an ICRA analysis. In the infrastructure segment, the significant increase of 24 per cent in capital expenditure to Rs.7.5 trillion in the FY23 budget estimates over FY2022 revised estimates, led by  Rs.1.8 trillion for roads and  Rs.1.4 trillion for railways, augurs well for cement demand. However, the elevated input costs are likely to adversely impact operating margins, which are expected to be the lowest in the last seven years.

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