Summary

In fiscal 2018, cement demand growth hit a multi-year high driven by robust growth from the housing segment, especially in the rural belt, and a raft of infrastructure investments. To be sure, there was a low-base effect, too. But demand growth momentum has continued through the first half of this fiscal with volume rising a sharp 12.5-13.5% led by demand from the southern and eastern regions.

However, pricing growth continued to elude the industry on account of ramp-up of acquired assets, coupled with additions of around 24-26 million tonne capacities in the preceding nine months (last quarter of fiscal 2018 and first half of fiscal 2019).

Also, rising crude oil prices has cast cloud on the sustenance of profitability. Further, aggregate leverage of cement makers remains high (at over Rs 50,000 crore), driven by acquisitions, which has put some balance sheets under stress.

In this context, CRISIL is conducting a webinar on the cement industry, where its analysts will speak on:

• Nuances of demand-supply and regional picture
• Trends in realisation
• Impact of high crude prices and weaker rupee on cost
• Capex outlook of the cement sector
• Credit view on mid-size cement makers, given their high-leverage profiles

The webinar will include a presentation by CRISIL’s experts, followed by a panel discussion with senior industry leaders and a Q&A session.