Cement Companies: Higher Investment Costs and Lower Demand Can Reduce Cement Company Margins

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

Synopsis

According to some estimates, the prices of domestic coke and Indonesian coal have risen by 55% to 80% in the last five months. The internal brokerage company IIFL Securities said that this could lead to an increase in operating costs of cement companies by 350-400 rupees per tonne.

ET Intelligence Group: Cement companies’ operating profit margins could fall 5-6% year on year in fiscal 23 year due to high prices of basic raw materials such as petroleum coke and coal, increased competition and moderate demand, analysts say . According to some estimates, the prices of domestic coke and Indonesian coal have risen by 55% to 80% in the last five months. The internal brokerage company IIFL Securities said that this could lead to an increase

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