Cement firms get a grip on profitability, but not price

Competition is up with the addition of new capacity, but cooling input costs have helped

- Ujjval Jauhari

New Delhi: Cement price hikes at the end of March and early April have failed to hold as more capacity came on stream during the year; however, rising volumes and cooling input costs are expected to lift profitability for cement makers, analysts said.

During the first four months of 2023, cement makers attempted to raise prices at least thrice; however, the hikes did not sustain, said Mangesh Bhadang at Centrum Institutional Research. Cement prices averaged at ₹358 per 50 kg bag during Q4, almost at same levels as in Q3. According to Bhadang, while the North region saw prices improve by a marginal ₹5-10, most other regions so no change.

Analysts at Asian Market Securities said the attempted price hikes after the end of FY23 were not going through, except in a few states.