Covid-19 impact: Recovery for cement erratic, but margins may hold

The cement industry is expected to end the current financial year with a volume decline, but price discipline and reduction in costs might hold most companies in good stead.

Cement companies have seen a partial reversal of prices hikes announced in May. 

A combination of reduced overhead expenses and cut in fuel cost could help shield margins. 

“Margins should not be a worry for cement companies this year. Volumes may be low, but they have maintained a high Ebitda (earnings before interest, taxes, depreciation, and amortisation) per tonne, helped by sharp reduction in overheads and lower fuel costs,” said Nitin Bhasin, head of