Cement price likely to rise by Rs 15-20 per bag: Crisil
The rise in price has been attributed to inputs commodity cost pressure such as coal and diesel supported by rising demand.
Retail prices of cement is likely to rise again by another Rs 15-20 over the next few months and touch an all-time high of around Rs 400 per bag this fiscal, rating agency Crisil said on Thursday in a sector note.
The rise in price has been attributed to inputs commodity cost pressure such as coal and diesel supported by rising demand.
WATCH | Click on Zee Business Live TV Streaming Below:
Crisil in its report said amid rise in price the earnings before interest, tax, depreciation, and amortisation (EBITA) of cement makers will decline by Rs 100-150 per tonne this fiscal because of high input costs.
The recent rally in prices of imported coal (up more than 120 per cent on-year in the first half) and petcoke (up 80 per cent) is likely to increase power and fuel costs by Rs 350-400 per tonne (up around 40 per cent on-year) this fiscal as a large part of the cost inflation is yet to be absorbed, the note stated.
Cement sales volume is expected to rise 11-13 per cent this fiscal, albeit on a low base. This will largely offset the impact of cost pressure on cash accruals and keep credit profiles stable, the agency said, analysing 17 cement companies, which have a volume market share of 75 per cent in India.
Cement volume growth will be driven by demand revival across segments ? infrastructure, housing and industrial ? as the impact of COVID-19 wanes.
Cement demand saw a robust growth of over 20 per cent in the first half of this fiscal, but should moderate to 3-5 per cent in the second half, primarily because of a high-base effect, translating to 11-13 per cent growth for this fiscal, it said.
At the regional level, South India witnessed the steepest hike of Rs 54 per bag in October over the previous month, followed by the central region with Rs 20 per bag. The north saw a hike of Rs 12 riding on healthy demand, while in the west the price increased by Rs 10 per bag. The east saw a moderate increase of Rs 5 per bag.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Top 7 SWP Mutual Funds: Rs 50 lakh investment, Rs 70K monthly pension for 10 years, and Rs 42.30 lakh balance value; know more details
SIP Returns: How Rs 3,000, 5,000, and Rs 10,000 SIPs can help you build retirement corpus of Rs 1.06 cr, Rs 1.77 cr, and Rs 3.53 cr
Gold and Silver rate today (May 14, 2024): Precious metals trade in green; yellow metal above Rs 72,000 once again, white metal near Rs 85,350
RCB vs CSK IPL 2024 Ticket Booking Online: Where and how to buy RCB vs CSK tickets online - Check IPL Match 68 ticket price, other details
HDFC Bank's new credit card offers customers to decide their billing cycle, reward points and cashback; know more about it
Bandhan Bank Q4 FY24 Results Preview: PAT, interest income likely to grow in almost double digits; asset quality may improve
07:03 PM IST