Cement industry production is expected to grow by 7-8% in FY24: ICRA
- IBEF
- July 4, 2023
According to a report released on July 3, 2023 by Investment Information and Credit Rating Agency (ICRA), the domestic cement industry is expected to experience volumetric growth of 7-8% in FY24, supported by increased demand from the housing and infrastructure sectors, giving a stable outlook for the sector. Additionally, the industry's operational profits before interest, tax, depreciation, and amortisation will increase by 14-18% year-on-year (YoY) to US$ 10.98-11.59 (Rs. 900-950) per million tonnes (MT) in FY24 because of the input cost softening, according to the report.
In addition, the cement sector is expected to increase capacity by 63-69 million metric tonnes (MMT) between FY24 and FY25, supported by strong demand prospects. This will add capacity worth around 33-36 million MT in FY24 and approximately 30-33 million MT in FY25. As per the report, the cement capacity is expected to increase by 6% in FY24, the highest addition in the last five years.
Furthermore, it was also reported that the operating margins will increase as power and fuel prices, which peaked in the first half (H1) of FY23, decreased in H2 FY23, and are predicted to further decline in FY24.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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