Cement demand to surpass 340 million tonnes in FY22: ICRA - The Hindu BusinessLine

April 06, 2021
Demand rebound driven by rural housing, infrastructure
The domestic cement demand is expected to be highest in a decade and estimated to surpass 340 million tonnes in FY2022, driven by sustained rural housing demand and significant pick-up in the infrastructure activity.
On the supply side, the capacity additions are also expected to increase by 22-25 million tonnes per annum in FY2022.
As per an ICRA note, while the cement prices are expected to largely sustain at the recently increased levels supported by the improved demand, the higher input costs are likely to exert pressure on operating margins in FY2022. Though this is likely to result in some moderation in debt coverage metrics, they are likely to remain at healthy levels.

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