Spurt in volume, price hike to cushion cement firms against rising costs

All-India average cement price, according to analysts' estimates, is likely to be up around 1 per cent quarter-on-quarter (QoQ) and nearly 5 per cent YoY in Q4-FY21E

A rise in volume accompanied by a moderate hike in cement prices is likely to outweigh the impact of rising input costs for most cement firms in the March 2020 quarter, believe analysts, who expect the sector to post decent growth in Q4-FY21 and carry this optimism into fiscal 2021-22 (FY22) as well.

For FY22, Crisil, Ratings estimates volume growth at 13 per cent, aided by an expected revival in demand from infrastructure and urban housing sectors. Operating profits, they believe, could moderate by Rs 200-250 per tonne in FY22 due to higher cost and lower net realisation.

“However, cash