Indian cement volumes forecast to rise 6% in 4QFY22-23

India’s cement sector is expected to see growth in the 4QFY22-23 of around six per cent YoY and 13 per cent QoQ, according to a new report by Antique Stock Broking Ltd (ABS). Industry volume is predicted to reach around 109Mta with a utilisation rate of 80 per cent in the 4QFY22-23.

UltraTech Cement has already reported grey cement volumes of 30Mt, up 14 per cent YoY, implying a utilisation rate of 94 per cent on expanded capacities.

The total cost per tonne of cement is forecast to decline by around 3.5 per cent QoQ (approximately INR160/t US$1.95/t). UltraTech Cement, Shree Cement and Dalmia Cement (Bharat) are most likely to lead says ABS with Less than INR1050/t, followed by Ambuja Cements at INR1000/t. Companies may attempt  seasonal price hikes of INR30-50/bag in the south ad INR15-20/bag in the rest of India, concludes ABS.