The Indian Cement Industry began 2018-2019 on firm ground as a majority of cement companies showed a decent volume growth in the first quarter. #ACC and #AmbujaCements, two of India's biggest cement companies who are part of the global cement giant #LafargeHolcim, reported commendable profits in the second quarter of 2018 on the back of healthy volume growth.
With a pick-up in infrastructure development activities, cement demand is expected to remain steady. Government spending on infrastructure, along with common-man housing schemes, is expected to push the Indian cement industry growth to 7%-8% in the current financial year.
On the cost front, the beginning of 2018 turned out to be a challenging as the Indian Cement industry faced multiple obstacles like sand mining ban, pet coke ban and rising fuel costs. However, the worst seems to be over as some of these cost dependant issues seem to have been solved. Relative to that, companies are showing minor improvement on a quarter-on-quarter (QoQ) basis as rising input cost pressure appear to have stabilised. Based on the latest quarter results, the operating profit margins of both ACC and Ambuja Cements have improved on a quarter-on-quarter (QoQ) basis.
The Indian Cement Industry is looking to improve capacity utilisation in near future as the cement demand environment riding on the back of pick-up in infrastructure and housing is expected to remain upbeat.
With a pick-up in infrastructure development activities, cement demand is expected to remain steady. Government spending on infrastructure, along with common-man housing schemes, is expected to push the Indian cement industry growth to 7%-8% in the current financial year.
On the cost front, the beginning of 2018 turned out to be a challenging as the Indian Cement industry faced multiple obstacles like sand mining ban, pet coke ban and rising fuel costs. However, the worst seems to be over as some of these cost dependant issues seem to have been solved. Relative to that, companies are showing minor improvement on a quarter-on-quarter (QoQ) basis as rising input cost pressure appear to have stabilised. Based on the latest quarter results, the operating profit margins of both ACC and Ambuja Cements have improved on a quarter-on-quarter (QoQ) basis.
The Indian Cement Industry is looking to improve capacity utilisation in near future as the cement demand environment riding on the back of pick-up in infrastructure and housing is expected to remain upbeat.
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