Leading cement manufacturers have reported single-digit volume growth for the June quarter, despite facing pressure on their topline due to declining prices. Major companies like UltraTech, Ambuja Cements, ACC, Shree Cements and Dalmia Bharat saw volume increases ranging from 3% to 9%, along with improved capacity utilisation.
However, cement prices continued to be a challenge. The average all-India cement price was approximately Rs 348 per 50 kg bag in June 2024, down about 3% year-on-year but slightly higher than Rs 335 per bag in May 2024. For the first two months of FY25, the average price was Rs 340 per bag, an 8% decline from the previous year. This compares to Rs 365 per bag in FY24 and Rs 375 per bag in FY23. Additionally, the intense heatwave and general elections in April-May slowed construction activities.
- UltraTech Cement: Reported a stable consolidated net profit of Rs 16.96 billion for the June quarter, with revenue from operations increasing by 1.87% to Rs 180.69 billion. Volume sales grew by 7% to 31.95 million tonnes (MT). The company has also announced an open offer for India Cements Ltd after acquiring the promoter's stake.
- Ambuja Cements: Achieved a consolidated net profit of Rs 7.89 billion with revenue from operations at Rs 83.11 billion. Consolidated sales volume, including its subsidiary ACC, was 15.8 MT, up 2.6%. Standalone sales volume was 9.3 MT, a 2.2% increase.
- ACC: Reported a 22.46% decline in net profit to Rs 3.61 billion, with revenue from operations marginally down to Rs 51.54 billion. Sales volume increased by 9% to 10.2 MT, marking the highest volume in the last five years.
- Shree Cement: Experienced a 51.31% drop in consolidated net profit to Rs 2.78 billion, though revenue from operations rose by 1.73% to Rs 51.23 billion. Total sales volume increased by 8% to 9.64 MT. Premium products constituted 7.6% of total sales.
-Dalmia Bharat: Recorded a slight decrease in income from operations to Rs 36.21 billion but saw sales volume rise by 6.2% year-on-year to 7.4 MT.
Conversely, companies like JK Lakshmi Cement, Birla Corporation, and India Cements faced volume declines. Birla Corporation saw a slight drop from 4.41 MT to 4.38 MT due to weak prices and sluggish demand. JK Lakshmi Cement?s sales volume fell from 2.53 MT to 2.32 MT.
Looking ahead, cement companies anticipate a boost in demand driven by the housing and infrastructure sectors, supported by a normal monsoon and substantial investments in these areas.
(ET)
