Cement production may grow at 6-7% in FY19
Cement production is expected to grow at 6-7 per cent in the current fiscal year, driven by pick-up in affordable and rural housing segments and infrastructure, a report said
However, rising costs are likely to put pressure on the operating profitability of cement firms in the coming quarters, Icra said in its report, adding the manufacturers’ ability to secure price increases remains the key.
“We expect cement demand growth of 6-7 per cent in FY2019, driven by a pick-up in the affordable and rural housing segments and infrastructure, primarily road and irrigation projects,” said Sabyasachi Majumdar, senior vice-president, Icra.
According to the rating agency, cement production remained healthy in the first four months of FY19, reporting a 14.7 per cent year-on-year (YoY) growth.