Cement industry to witness 18-20% volume growth in FY22: Report

24 Mar 2022 CW Team

According to a report, the cement industry might witness 18-20% volume-based growth and exceed pre-Covid-19 levels by 6% in the current fiscal year.

Investment Information and Credit Rating Agency (ICRA) said that the high input costs on account of inflationary pressure resulted in a decline in operating margins by 440-480 basis points (bp) to around 19.8-20.2% in FY22.

For FY22, ICRA expects 18-20% volume-based growth to around 355 million metric tonnes (mt), which will surpass the pre-Covid levels by 6%, driven by robust rural housing demand and pick-up in infrastructure activity.

Assistant Vice President (AVP) and Sector Head of IRCA, Anupama Reddy, told the media that despite the increase in the net sales by 5%, the Operating Profit Before Interest, Taxes, Depreciation and Amortisation (OPBITDA) per metric tonne declined by 10% year-on-year (YoY) in the first nine months of FY22 to Rs 1,124.

She said that it is primarily due to increasing input costs, the raw material, power and fuel and freight expenses which are higher by 12%, 31% and 5% YoY, respectively. For 2022, the continued elevated costs would push down the OPBITDA per mt by 16-18% to Rs 1,030-1,050 per mt.

As per the report, all-India cement production witnessed 25% growth at 290 million mt in the first ten months of FY22, compared to the same period a year ago. It was up by 4%, compared to pre-Covid-19 pandemic levels of ten months of FY20.

Image Source

Also read: Paving the way for a carbon-negative cement industry

Real Estate

07 Jul 2026

Pecan Realty Completes Rs 1.5 Billion Transactions

Pecan Realty has recently completed four institutional transactions worth over Rs 1.5 billion over the past two years, strengthening its position as an execution-led real estate platform. The deals include resolution-led acquisitions, structured finance transactions and capital partnerships across its development portfolio.The transactions covered acquisitions through the National Company Law Tribunal process and helped provide repayment or exits to both private and public sector lenders. The company said the deals demonstrate its ability to resolve complex project situations, work with instit..

SNN Estates Expands North Bengaluru Housing Project

SNN Estates has announced an expansion of its SNN Estates Felicity residential project in North Bengaluru following strong buyer demand, with 75 per cent of the first-phase inventory sold within three days of launch.The developer will add 76 apartments in the new phase, taking the project's estimated revenue potential to around Rs 1,000 crore upon completion of Phase 2.Spread across 6.5 acres in Rachenahalli, near Manyata Tech Park, the project comprises 604 apartments in 1.5, 2, 2.5, 3 and 4 BHK configurations. The development includes a 50,000-sq-ft clubhouse with amenities such as sports co..

SCG Drives ASEAN Industrial Transformation Strategy

SCG is strengthening its focus on ASEAN as a key growth region by advancing industrial transformation, enhancing competitiveness and building resilient regional value chains. Thammasak Sethaudom, President and Chief Executive Officer, SCG, highlighted the need for industries to continuously develop capabilities, strengthen resilience and deepen regional cooperation to achieve sustainable long-term growth.SCG views ASEAN as an important growth engine alongside China, supported by favourable demographics, trade connectivity and investment flows. With ASEAN’s GDP projected to grow by around 4.7..