Cement demand in India increased by 6-7 per cent YoY to 128Mt with most regions seeing expansion of 5-8 per cent YoY in the fourth quarter of FY24-25.
The average pan-India cement price in the 4QFY24-25 is expected to rise approximately 2.5 per cent QoQ, led by a three per cent QoQ increase in most regions, according to analysts at Antique Stock Broking Ltd. However, in the south a price drop of one per cent QoQ and nine per cent YoY.
Volumes are forecast to grow 11 per cent YoY and 26 per cent QoQ, led by the consolidation of acquired entities’ volumes by UltraTech Cement and Abuja Cement. Total cost per tonne is expected to fall INR150/t (US$1.75/t) QoQ and INR100/t YoY aided by operating leverage and lower fuel costs. Accordingly, the average EBITDA per tonne may rise INR225/t QoQ, however, it may still decline INR50/t YoY to INR 1015/t, says Antique Stock Broking.
