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News Cement companies to report weak financial results amid low demand

Cement companies to report weak financial results amid low demand

Written by Global Cement staff 09 January 2025
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India: Cement companies are expected to report weak financial results for the December quarter of the 2025 financial year due to lower demand, suppressed by reduced government infrastructure spending and weak private capital expenditure, according to The Hindu Businessline.

Large players, including UltraTech Cement and Ambuja Cements, are expected to lead demand growth by 8% year-on-year in the December quarter, but earnings before interest, tax, depreciation, and amortisation (EBITDA) may decline by 18%. Efforts to increase prices in October and November 2024 were rolled back, and a mid-December increase reportedly failed to boost profits.

Parvez Qazi, research analyst at Nuvama Research, said “We expect further consolidation in the space mostly in the southern region due to its fragmented nature. Softening fuel prices, along with cost efficiency measures undertaken by various players, are likely to provide some relief on the cost front, thereby cushioning the impact of weak realisations to some extent.”

Last modified on 15 January 2025
Published in Global Cement News
Tagged under
  • India
  • Results
  • demand
  • costs
  • Price
  • Asia
  • GCW692
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