Cement ind output to grow 7-8% in FY24 on housing, infra demand
ICRA gives a ‘stable’ outlook for the cement sector
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New Delhi The domestic cement industry is expected to have a volumetric growth of 7-8 per cent in FY24, helped by a rise in demand from the housing and infrastructure sector, a report by ICRA said on Monday, giving a 'stable' outlook for the sector.
Besides, the softening of input costs would help the cement industry to improve its operating profits before interest, tax, depreciation and amortisation by 14-18 per cent Year-on-Year (YoY) to Rs 900-950 per MT in FY24, it added. Moreover, supported by healthy demand prospects, the capacity addition in the cement industry is estimated at 63-69 million metric tonnes (MT) between FY24 and FY25. In this, a capacity worth around 33-36 million MT will be added in FY24 and around 30-33 million MT in FY25.
"The cement capacity is expected to rise by 6 per cent in FY2024, the highest addition in the last five years," it said. ICRA has given a "stable" outlook for the cement sector. Steady demand from the housing and infrastructure sectors along with a pick-up in industrial capex is expected to support volume offtake.
