No cheer for cement makers in FY19, rising costs to hit profitability: Icra

Cement makers face another tough year; demand growth likely to be 4-5% in FY19

India's 460-million tonne cement industry, the world's second-largest, is likely to continue facing tough times in 2018-19 too. Hit by a gross mismatch in supply and demand for nearly a decade now, leading to poor capacity utilisation of less than 70 per cent, the sector's growth has remained stunted with a lower digit growth trajectory. 

Now, despite the government's push for infrastructure development, the sector may face pressure on its profitability given the rising costs of input materials, and capacity utilisation will hover around 65 per cent, says a report from ratings agency Icra. 

According to the report, cement makers have witnessed rising energy and freight costs on the back