October 2, 2022

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cement companies: Higher input costs and lower demand may pull cement companies’ margins down

2 min read
cement companies: Higher input costs and lower demand may pull cement companies' margins down

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In the past six months, the Nifty 50 index has fallen close to 9% while the ET Cement index – which includes all key listed entities – has fallen close to 24%.

Synopsis

According to some estimates, prices of pet coke and Indonesian coal have shot up 55% to 80% in the past five months. Domestic brokerage IIFL Securities said this may lead to a rise in the operating cost of cement companies by ₹350-400 per tonne.

ET Intelligence Group: Operating profit margins of cement companies may fall 5-6% year-on-year in FY23 due to the high cost of essential inputs such as petroleum coke (pet coke) and coal, increased competition and moderate demand, according to analysts.

According to some estimates, prices of pet coke and Indonesian coal have shot up 55% to 80% in the past five months. Domestic brokerage IIFL Securities said this may lead to a rise in the

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