After almost three years of stellar demand, the Indian cement industry has entered a phase of moderation in volume growth, but recovery in margins. This, even as there has been a significant step up in capital expenditure (capex) and consolidation of late.
Since fiscal 2022, robust spending in the infrastructure and housing sectors had cranked up cement demand before sluggishness set in from the second half of last fiscal. How are the demand drivers stacked up for coming years, and can the current momentum sustain?
As for profitability, the sector saw an improvement last fiscal after two years owing to softening of pet coke/coal prices. With prices of fuels benign, are there internal levers to improve profitability in the near-to-medium term?
Also, what factors are driving the significant step up in capacity addition and acquisitions, and how will this impact capacity utilisation, cement prices and credit profile of players?
For deliberations and answers, CRISIL Ratings is organising a webinar, titled 'On a firm footing', where its experts will present their views on:
Demand outlook: Regional and segment trends along with drivers
Outlook on profitability: Trends in cement prices, input costs and operating leverage
Capex: Expected capacity addition and cash outflow over the medium term
Credit outlook: Impact of increased capex spending and changing demand-supply dynamics
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.
