The Indian cement industry is in an interesting phase. While demand remains robust, profitability has been shackled by elevated cost pressure. Plus, capex intensity has also increased.
To be sure, the gradual softening in coal/petcoke prices has lowered the cost of cement production, resulting in some improvement in profitability during the second half of fiscal 2023.
Will the cost pressure abate further? What would that mean for cement prices and profitability this fiscal?
On the demand side, infrastructure was a key driver last fiscal. Will the trend carry on? To be sure, the 17% increase in the budgetary allocation for infrastructure this fiscal may help.
How will demand from housing pan out in the near term? Will the momentum in industrial capex continue?
For a deeper analysis of the cement sector, CRISIL is organising a webinar, titled ‘Concrete pathways’ where its experts will present insights on:
Demand outlook: Regional and segment trends and drivers
Outlook on profitability: Trends in realisation, input costs and operating leverage
Capex outlook given the step-up in expansion plans and healthy balance sheets
Credit outlook: Impact of changing demand and profitability dynamics on credit profiles
This will be followed by a panel discussion with industry leaders and a Q&A session.
Disclaimer: This event and its content are intellectual property and confidential information of CRISIL. Any use of the same without written permission of CRISIL is illegal and hence punishable. Recording the webinar in any form in full or part or copying, altering, distributing or streaming the webinar is strictly prohibited and violation will attract legal action.
