Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us  
Google
Web www.equitybulls.com
Research

| More

CRISIL MI&A: Cement prices to dip 1-3% this fiscal despite healthy demand

Posted On: 2023-06-20 22:44:36 (Time Zone: IST)


Prices to remain in check amid cooling costs and intensifying competition

Cement prices are expected to slip 1-3% this fiscal, after clocking a 4% compound annual growth rate (CAGR) over the past four to a new all-time high of Rs 391 per 50 kg bag last fiscal.

The run-up was due to disruptions caused by Covid-19, followed by a sharp surge in input costs, especially thermal coal, further aggravated by the Russia-Ukraine war.

Now, heightening competitive intensity and softening input costs are set to reverse the trend.

To be sure, prices have moderated since early 2023 on the back of a gradual softening of energy costs and efforts of manufacturers to gain market share in a seasonally strong fourth quarter. Prices fell ~1% to Rs 388 per bag on average in the fourth quarter of last fiscal sequentially, despite manufacturers carrying high-cost inventory. On an on-year basis, though, prices have remained elevated.

The heightened competitive intensity can be gauged from the fact that, for the first time in several years, there were no pre-monsoon price hikes in April and May this fiscal despite steady demand. The push to improve market share is evident from the top five players comprising 55% volume share last fiscal compared with 49% pre-Covid-19.

Says Hetal Gandhi, Director - Research, CRISIL Market Intelligence and Analytics, "CRISIL MI&A Research expects cement demand growth to be strong at 8-10% on-year this fiscal, the pre-election year. This, however, will not propel prices up. On the contrary, prices are set to decline ~2% on-year to Rs 382-385 per bag, pulled lower also by relatively moderate growth in the trade segment."

Says Koustav Mazumdar, Associate Director - Research, CRISIL Market Intelligence and Analytics, "After the highs of $344 per tonne in fiscal 2023, Australian coal prices are forecast to decline to $150-200 per tonne this fiscal. Dated Brent Crude is also expected to correct over 17% in 2023, with diesel prices falling in tandem with crude oil prices in the latter half of the fiscal. Easing coal, petcoke and diesel prices will come as a relief for the cement industry, which was reeling under high costs and deteriorating profitability."


Click here to send ur comments or to feedback@equitybulls.com

Disclaimer:The article above is a gist / extract of the original report prepared by the research firm / brokerage firm. This article is not to be considered as an offer to sell or a solicitation to buy any securities. This article is meant for general information only. www.equitybulls.com, its employees or owners or the research firms, its employees or owners won't be responsible for any liability that may arise from information, errors or omissions in these articles. www.equitybulls.com or its employees or owners / the research firms or its employees or clients or owners may from time to time hold positions in securities referred in this article. For detailed research reports, please contact the concerned research firm directly.





Other Headlines:

CRISIL Ratings: Agrochemicals sector to see 7-9% growth amid modest exports

SBI Capital Markets: RBI Monetary Policy Dec'24 - RBI faces arduous task of managing all dynamics: Liquidity, Currency, Growth and Inflation

SBICAPS Monthly Ecocapsule Dec'24 : FY25 - A TALE OF TWO HALVES OR ONE OF FULL DESPAIR? - Executive Summary

CRISIL Ratings: Revenue growth of organised luggage makers to halve to 8-10%

CRISIL Ratings - Cement demand to grow at a moderate pace of 7-8% this fiscal

CRISIL Ratings: For small finance banks, RoA to dip ~40 bps this fiscal

Securitisation volumes witness strong growth; likely to reach ~Rs. 60,000 crore in Q2 FY2025: ICRA

CRISIL Ratings: Operating losses of state discoms to stay high despite 15-20% dip

CRISIL Ratings: Tamil Nadu garment exporters to see 8-10% revenue growth

CRISIL MI&A: Inflated natural rubber prices to puncture tyre maker margins

Infrastructure bond issuances by public sector banks to drive banks' bond issuances to an all-time high in FY2025: ICRA

CRISIL Ratings: Apparel retailers to stitch 8-10% growth with festivals, fast fashion

CRISIL Ratings: For ARCs, rising power consumption to boost recoveries from stressed operational thermal plants

Views of ICAI on SA 600 vs ISA 600

CRISIL Ratings: Wagon makers set to roll in ~20% revenue growth this fiscal

CRISIL Ratings: Basmati industry to see revenue grow ~4% on a high base this fiscal

CRISIL: Pharmaceutical sector set for 8-10% revenue growth this fiscal

CRISIL Ratings: Flexible packaging players' credit profiles to stay subdued this fiscal

Industry credit expected to grow over 12 per cent: FICCI-IBA Bankers' Survey

CRISIL Ratings: Decadal-low duty to push gold jewellery retailers' revenues up by 22-25%

CRISIL Ratings: Education loan AUM of NBFCs to top Rs 60,000 crore this fiscal

Evolving asset quality risks to impact growth and profitability of microfinance: ICRA

Near-term Consolidation; Focus Remains on Style & Sector Rotation - Axis Securities

CRISIL Ratings: Paper packaging volume to grow, but profitability to plumb lows

CRISIL MI&A: Corporate revenue growth likely moderated to 5-7% in April-June, the slowest in 15 quarters

CRISIL Ratings: Revenue growth of auto dealers to enter the slow lane this fiscal

Declining liquidity coverage ratios to slow down credit growth for banks: ICRA

CRISIL Ratings: Road developers to see slower revenue growth of 5-7% next fiscal

CRISIL Ratings: Small finance banks to grow advances 25-27% this fiscal

Global monetary easing to pick up pace - Puneet Pal, Head-Fixed Income, PGIM India Mutual Fund

Kotak Institutional Equities: Strategy: 1QFY25: Converging trends

CRISIL Ratings: Cement makers line up ~Rs 1.25 lakh crore capex over fiscals 2025-27

CRISIL Ratings: Urea import dependency to fall to 10-15% from this fiscal

CRISIL Ratings: 20% ethanol blending goal means more sugarcane utilisation

Kotak Institutional Equities: Automobiles & Components: 1QFY25 review: Steady quarter; demand outlook weakening

CRISIL MI&A: Macroeconomics First Cut - Goods exports fall, services soften

Kotak Institutional Equities: Consumer: 1QFY25 review- Uptick in staples, continued weakness in discretionary

CRISIL Ratings: Despite cash disbursement restriction gold-loan NBFCs shine

SBICAPS Report - The Green Pill: Labelled Bond Issuances, ESG Indices, Global Sustainable Funds

We expect the 10 yr benchmark bond yield to keep drifting lower gradually - PGIM India Mutual Fund

Strategy: Faith, froth and fundamentals by Kotak Institutional Equities

Earnings growth should be the key driver of returns hereon - Vinay Paharia - CIO, PGIM India Mutual Fund

IT Services: ERD services: Auto pulse-challenges ahead - Kotak Institutional Equities

Banks, Diversified Financials : Strong on expected lines across BFSI - Quarterly Review - Kotak Institutional Equities

Metals & Mining: SC ruling-empowers the states; marginal negative impact - Kotak Institutional Equities

CRISIL Ratings: Revised deposit norms unlikely to be onerous for HFCs

CRISIL Ratings: 6 gigawatt renewable energy storage to be added by fiscal 2028

CRISIL Ratings: Thermal share in power generation to dip over 500 bps next fiscal

Indian bond market issuances exceeded $105 billion, $25 billion new equity issued in FY24 - Shri Pramod Rao, ED, SEBI

One third of Nifty 100 companies hire thousands of young talent on apna.co


Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2020