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Cement firms face another worry
Mint Mumbai
|March 03, 2025
The narrative for cement companies is shifting from pricing to cost trends. Cement prices have yet to significantly improve, and realizations have remained lacklustre. Meanwhile, rising costs are adding pressure, raising concerns about profitability and future earnings.
The market absorbed price increases by cement manufacturers towards the end of the December quarter (Q3FY25). So far in Q4, all-India average cement prices have risen by ₹10 per bag, or 3%, sequentially to ₹326, according to an IIFL Securities dealer channel check. This could offer some respite to Q4 earnings, particularly for pan-India cement players.
Prices in northern and central India have risen 5-6% sequentially in Q4-to-date, followed by a 2.5% rise in western India, according to an IIFL report of 24 February. However, southern and eastern India continue to face pricing pressure due to higher competition and weak demand, respectively.
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