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TOUGH YEAR AHEAD
August 2022
|Construction Philosophy
Cement companies in the country would have the lowest operating margins in the last seven years in FY2023.
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HIGHLIGHTS
• Cement volumes are expected to grow by 7-8% in FY2023 to around 388 million MT
• Elevated input costs are likely to result in a decline in operating profit margins by 440-490 bps in FY2023
ICRA, a Moody's investors' service company, has predicted very low operating margins for cement companies during fiscal 2023 owing to difficult demand-supply scenario and high input costs.
In its report on the prospects for the cement industry, ICRA said cement volumes would grow by 7-8% in FY2023 to around 388 million MT, aided by demand from housing, both rural and urban, and the infrastructure sectors.
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