The cement gross sales quantity is anticipated to have a wholesome 9 to 10 per cent progress within the present fiscal, led by demand from infrastructure and concrete housing sectors, in line with a report. Within the first half of this fiscal, the trade had a quantity progress of round 12 per cent within the April-September interval, mentioned a report from score company Icra.
Nevertheless, there can be “some moderation in progress in H2” on account of below-normal monsoons on the general crop output, adversely impacting farm incomes and demand for rural housing in some markets, it added. “Furthermore, with the upcoming state elections the discharge of funds in the direction of ongoing infra initiatives could decelerate, posing some draw back dangers to cement quantity off-take in H2 FY2024,” it mentioned.
Nevertheless, the working margins for the cement trade is anticipated “to enhance by 260-310 bps to 16.0-16.5 per cent in FY2024”. The rising give attention to inexperienced energy is more likely to decrease the cement trade’s dependence on high-cost thermal energy and grid for energy necessities, thereby lowering the working prices, it mentioned.
“Assuming thermal energy value at Rs 6.5/unit, waste warmth restoration system (WHRS) energy value at Rs 0.75/unit and solar energy value at Rs 4.5/unit, a 25 per cent substitute of thermal energy consumption by inexperienced energy might result in value financial savings of round 15-18 computer, whereas additionally lowering the carbon footprint,” it mentioned.
Moreover, the cement trade would additionally proceed its capability growth, supported by wholesome demand prospects, it mentioned. “The capability addition within the cement trade is estimated at 63-70 million MT throughout FY2024-FY2025, of which round 33-37 million MT will probably be added in FY2024, the very best addition within the final 5 years. The jap and central areas are anticipated to steer the growth,” mentioned Icra.
Within the final fiscal 12 months, the trade had added a complete capability of 27 million metric tonnes each year (MTPA). In keeping with the information from the Cement Producers’ Affiliation (CMA), India’s put in cement capability is 541 MT.
(This report has been printed as a part of the auto-generated syndicate wire feed. Aside from the headline, no modifying has been executed within the copy by ABP Dwell.)