India: The government of Uttar Pradesh has awarded JK Cement US$4.15m as a concession for its construction of the 1.5Mt/yr Aligarh grinding plant. The Times of India newspaper has reported that the concession covers some of the producers' investments over a period between 1 April 2019 and 31 March 2022.
JK Cement has invested a total sum of US$145m in projects in Uttar Pradesh, including US$60.6m of it in the on-going construction of its 2.5Mt/yr Prayagraj grinding plant.
US: Eagle Materials reported sales of US$2.1bn in 2022, up by 15% year-on-year from 2021 levels. The producer's earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 19% to US$782m. Its cement sales rose by 7% to US$1.1bn due to increased prices, despite a drop in volumes. Throughout the year, the company increased its production of Portland limestone cement (PLC).
President and CEO Michael Haack said "Looking ahead, we anticipate continued attractive fundamentals in our markets, despite headwinds relating to higher interest rates and affordability constraints in single-family residential construction. Among the favourable demand factors we expect will affect our results in future periods are projected funding increases for infrastructure projects and healthy demand for heavy industrial projects and multi-family residential construction. We remain well-positioned to capitalise on these conditions, given our geographical footprint across the (Central) US Heartland and fast-growing Sun Belt (Southern US) and our financial strength and flexibility."
India: The government of Andhra Pradesh broke ground on the construction of the 35.1Mt/yr-capacity Machilipatnam Port in Krishna District on 22 May 2023. The New Indian Express newspaper has reported that the project is scheduled for completion in mid-2025. When operational, the Port will handle despatches of cement and clinker by local producers.
India: Ramco Cements' sales were US$987m during the 2023 financial year, up by 36% year-on-year from US$726m during the 2022 financial year. The producer sold 15Mt of cement and dry mortar products, up by 36%. The Times of India newspaper has reported that the producer's profit after tax declined by 62% to US$41.5m from US$108m.
The producer expects that anticipated infrastructure investments and a 'normal' monsoon will maintain strong cement demand in India in the full-year 2023 financial year. It forecast growth in its profit margins from the second quarter of the 2024 financial year (July - September 2023) onward.
