Cement Volumes To Be Up 7% YoY In 3QFY21

The seasonal uptick in demand is playing out as expected, with volumes bouncing back in the last few weeks from the weakness seen in November (due to festive holidays). Cement industry volumes have remained strong on the back

BY Realty Plus
Published - Thursday, 07 Jan, 2021

Cement Volumes To Be Up 7% YoY In 3QFY21

The seasonal uptick in demand is playing out as expected, with volumes bouncing back in the last few weeks from the weakness seen in November (due to festive holidays). Cement industry volumes have remained strong on the back of rural housing and a pickup in government spending (particularly in East and North). November demand growth, however, tapered due to festive holidays (Diwali, Chhath) and workers returning to their villages for the same. The demand has picked up once again from the second half of December as seasonal improvement in construction activity kicks in. Demand in East has been particularly strong, supported by pre-election spending by the state governments in West Bengal and Assam. Odisha, on the other hand, has seen an uptick in industrial infra demand. In 3QFY21, volumes for Coverage Universe have grown 7% YoY, with higher growth for North and East based companies – 23% for JK Cement and 14% for Shree. South-based companies India Cement and Ramco are expected to continue to see volume decline of 10% and 5%, respectively.