Major cement companies reported volume growth in June, but revenue fell due to lower price
Leading cement manufacturers reported a single-digit increase in volume during the June quarter, despite a muted topline due to the persistent decline in price. Listed manufacturers such as UltraTech, Ambuja Cements, ACC, Shree Cements, and Dalmia Bharat reported increases in volume, ranging from 3 to 9 percent, and an increase in capacity utilisation.
However, soft cement prices have placed their top-line under pressure in the April–June period. Furthermore, the cost of raw materials experienced a slight increase owing to an increase in the cost of fly ash and slag.
In June 2024, the average cement price in India was around Rs 348 per 50 kg bag, down around 3 percent year-over-year. However, this was higher when compared to Rs 335 per bag in May 2024, which was Rs 335 per bag in May 2024.
For the first two months of FY25, the average cement price was at Rs 340 per bag, down 8 percent YoY. In FY24, the average price was Rs 365 per bag and Rs 375 per bag in FY23, according to the report. Moreover, intense heatwaves and general elections also slowed the pace of construction activities in April–May.
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