ICRA’s Post

Demand growth from cement in the October-December 2023 period was subdued, registering a 3-4% growth #Cementsales #q3results #cement #Q3WithBS https://mybs.in/2dTSxFT

India's cement industry has immense growth potential driven by various factors. The industry has been a significant contributor to the country's economic development, thanks to the abundant availability of high-quality limestone deposits across the nation. In this post, we will explore the current state, geographical distribution, and future projections that paint an optimistic picture of the cement sector in India. 🔁Repost this ✅ Follow Feedback Advisory for more updates #feedbackadvisory #cementindustry #construction

#MarketWire The cement demand will be supported by the increase in capex allocation in the interim budget of FY25, albeit at a moderated pace of growth as expected. The announcement of construction of new houses under the Pradhan Mantri Awas Yojna (PMAY) Rural and Housing Scheme for Middle Class will enhance the medium term visibility of cement demand from affordable housing. Besides, the proposed cement corridor could reduce costs and improve logistics efficiency for cement companies in the medium-to-long run. Read more at :https://rb.gy/q94eir #IndiaRatings #cement #budget2024 #outlook #PMAY

Indian Cement Industry : Heading Towards Growth path Key Takeaways * As per report from ICRA, India Cement Industry is expected to post a Volume growth of 7% to 8% in FY24 * Capacity additions to increase by 6% in FY24 at 63mn metric tonnes. * India per capita cement consumption is just 250 kg vs World consumption of 500 -550kg Key Drivers of Cement Industry growth * The outlay of PM Awaas Yogana increased to Rs 79000cr * Creation of Urban Infrastructure in Tier 2 and Tier 3 cities with initial corpus of Rs 10000cr . * Healthy demand from Housing i.e. constitute 63% of cement demand and Infrastructure Sector . Views Is demand in Cement Industry at Inflection point (Turning Point) now with Govt thrust on Rural and Urban housing , Infra development ? Disclaimer The above views shared are personal .. #cementplant #cementindustry #cement #demand #ruralindia #urbaninfrastructure #infrastructure The Below 👇 is the graph for Cement Production Growth and per capita consumption

Cement Q1 Preview: Analysts Predict Mixed Performance With Declining Realisations, Rising Volumes The Indian Cement industry is going through an interesting phase. Prices and realization are falling due to intense competition for increased market share and volumes. Big players are improving their margins through better utilization of assets and cost efficiency but smaller players have started losing margins due to price and volume loss. We are also seeing a plethora of M&A activities wherein companies like UltraTech, Adani, and Shree are consolidating their positions for future challenges. NDTV presented a good analysis for cement industry professionals and those with keen interest in the Infrastructure sector.

India's UltraTech to buy Kesoram's cement business for $645 mln Nov 30, 2023 India's UltraTech Cement today said that it will buy the cement business of Kesoram Industries in an all-stock deal valued at 53.79 billion rupees ($645.41 million), in a move to add heft to its hold in the southern part of the country. As a part of the deal, UltraTech will issue one share for every 52 shares of Kesoram and give UltraTech ownership of two integrated cement units in the southern Indian states of Karnataka and Telangana. The deal implies an offer price of 173.15 rupees per share, a 24.2% premium to Kesoram's last close. UltraTech is looking to boost its capacity ambitions in a highly competitive Indian cement sector, months after smaller peer Ambuja Cements, owned by billionaire Gautam Adani, bought a majority stake in Sanghi Industries. The transaction, expected to be completed within 9-12 months, will provide the company "the opportunity to extend its footprint in the highly fragmented, competitive and fast growing Western and Southern markets in the country," UltraTech said. The proposed transaction will accelerate UltraTech's path to achieving its stated goal of 200 million tons per annum (mtpa) #cement capacity in India, it added. Ultratech currently has a consolidated capacity of 137.85 MTPA, with 23 integrated manufacturing units.

UltraTech Cement Q2 net profit up 68.75% to Rs 1,280cr, sales at Rs 16,012.13cr Full Article Link >>> https://lnkd.in/gu52Au9a NEW DELHI: UltraTech Cement Ltd on Thursday reported a 68.75 per cent jump in consolidated net profit at Rs 1,280.38 crore for the second quarter ended September 30, 2023.The company had posted a consolidated net profit of Rs 758.7 crore in the same quarter last fiscal, UltraTech said in a regulatory filing.Consolidated revenue from operations […] Latest For Me . . . . #trendingnews #newstrending #trendingtopicnews #lifestyle #business #news #healthylifestyle #smallbusiness #supportsmallbusiness #lifestyleblogger #luxurylifestyle #businessowner #businesswoman #smallbusinessowner #businessnews

The Ramco Cements Limited (RAMCOCEM) is a well-known cement manufacturing company in India. It was established in 1961 and belongs to the Ramco Group. The company's main business is the production and sale of various types of cement and related products, including precast concrete and dry-mix mortar, mainly serving the construction and engineering industries. As one of the largest cement manufacturers in southern India, RAMCOCEM focuses on adopting efficient and environmentally friendly production technologies to ensure product quality and sustainable development. In addition to its core cement business, the company also operates in areas such as software services and fiber cement boards through subsidiaries, constantly seeking expansion and innovation, and is committed to becoming a leading company in the industry. ~1. Technical aspect: In the weekly level analysis, we can clearly identify a rising five-wave structure, in which the market has clearly entered the first wave stage of the correction after experiencing a continuous decline. The emergence of this callback suggests an important correction of the market's previous upward trend, in which the high point of the last upward cycle was located at 1058.20. The current market situation shows that the current price is in a three-wave correction structure, which puts pressure on short-term market conditions. ~2. Fundamentals: 1. Financial position: Outstanding performance in the third quarter of fiscal 2024 (October 1 to December 31, 2023). Sales increased 5% to $254 million. Among them, cement sales increased by 9.9% to 4 million tons, driving sales growth. Despite some disruption from the weather, the company achieved 37% growth in earnings before interest, depreciation, tax and amortization (EBITDA) to $48.4 million. Additionally, earnings growth was driven by a 28% decline in cement fuel prices to $138 per ton of cement. However, cement capacity utilization declined compared to the previous quarter, falling from 82% to 74%. ~Summary: Although the fundamentals are good and the market will have greater demand in the future, the short-term technical performance is weak. Please note that the short-term structure is not suitable for buying and opening positions, and a larger retracement may occur.

Cement Sales Slip in Q 4 for FY 24 : #indiancement #infrastructure The dip in cement sales in the fourth quarter of fiscal year 2024 due to poor demand & Price war by Leading Players may attribute to various factors: (i) Economic Slowdown: A general economic slowdown can lead to reduced construction activities, thereby decreasing the demand for cement. (ii) Seasonal Variations: In some regions, the fourth quarter might coincide with a period of unfavorable weather conditions, which can hamper construction projects and subsequently reduce cement demand. (iii) Supply Chain Disruptions: Issues within the supply chain, such as delays in raw material procurement or transportation bottlenecks, can affect cement production and availability, impacting sales. (iv) Housing Market Trends: Changes in the housing market, such as decreased investments in real estate or a decline in housing starts, can directly impact cement sales as construction is a primary consumer of cement. (v) Infrastructure Spending: Government spending on infrastructure projects can influence cement demand. If there's a slowdown or delay in infrastructure projects, it can affect the overall demand for cement. (vi) Competitive Factors: Increased competition from alternative building materials or cement suppliers has also impacted sales performance. (vii) Price Slippages : WSP of Major brands UltraTech , Adani , Dalmia & J K Super have further slipped by Rs.10-12/ Per Bag in March '24 across Regions. Consumer Confidence: Overall consumer confidence and sentiment towards long-term investments, such as construction projects has influenced cement sales.