The domestic cement industry in India is expected to experience a volume growth of 7-8% in FY24 due to increased demand from the housing and infrastructure sectors, according to a report by ICRA. The industry is also likely to see a rise in operating profits thanks to lower input costs. Additionally, capacity additions are estimated at 63-69 million metric tonnes between FY24 and FY25, with a 6% increase expected in FY24, the largest in the past five years.
Cement industry production to grow 7-8 per cent; gives 'stable' outlook: ICRA financialexpress.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from financialexpress.com Daily Mail and Mail on Sunday newspapers.
Cement Prices: Supported by healthy demand prospects, the capacity addition in the cement industry is estimated at 63-69 million MT during FY24-FY25, of which around 33-36 million MT will be added in FY24 and around 30-33 million MT in FY25.
The optimism arises from the continuing improvement in footfalls and the resultant uptick in retail sales, which will lead to a healthy net operating income, Icra Ratings said in a report on Thursday.
Though ICRA s outlook on retail mall operators remained stable, it predicted a rental rate hike by 3-4% YoY in FY2024. In FY2024, trading values are expected to improve by 4-5%, with healthy sales across product categories like jewellery, electronics, etc.