Cement prices increased in April but saw correction in May.
Management focused on selling only non-core assets going forward.
12. JK Cement
Targeting ₹150–200/ton improvement in realization over time.
Bihar clinker line to go live by January; other expansions by December.
No significant pricing impact from competition as of now.
13. JK Lakshmi Cement
Industry growth guided at 4–5% in FY25.
₹800 crore consolidated CAPEX; 5 MTPA East capacity to go live by FY28.
Net debt at ₹1,750 crore (consolidated); premium sales at 11%.
Prices in core markets up by ₹20–25/bag QoQ.
14. Sagar Cements
Construction and rural activity picking up; demand outlook improving.
Fuel cost at ₹1,466/ton; EBITDA/ton close to ₹350–400.
₹88 crore spent on CAPEX; ₹241 crore remaining over next 18 months.
15. Star Cement
Q3: Trade share at 51%, premium at 12%; lead distance 222 km.
Received ₹43 crore in incentives; costs impacted by one-off clinker purchase.
Expecting cost savings from reduced freight in Q4.
Net debt stood at ₹420 crore in December.
View:
The 3QFY25 management commentary from leading cement companies reflects a mixed bag of optimism and challenges. While demand recovery is visible in some regions—driven by government CAPEX, rural housing, and infrastructure push—pricing pressures and weak volume trends persist in South India. Most companies are prioritizing profitability over volumes, managing input costs, and pushing for premium products. CAPEX plans remain intact, with strategic expansions focused on East, Northeast, and export logistics. Fuel costs have stabilized, and companies are banking on price stickiness and market discipline for margin improvement in FY26.
Birla Corporation looks the best. Right price to enter and lots of room to grow.
Do watch JK Cement
Awesome article, crisp and to the point 👏
Thanks Ronak, do spread the blog amongst your network. Will also post high conviction stock ideas in the coming months.
Cement Sector – 3QFY25 Management Commentary: Company-wise Key Insights
1. UltraTech Cement
Grey Cement remains their core and high-growth focus area.
CAPEX plan of ₹1,800 crore; no plans to spend beyond this as of now.
UBS partners excited about new product introduction due to brand strength.
Actively evaluated adjacencies like sanitaryware, pipes, tiles, and furniture.
Confident of market position without needing price aggression.
2. Sahyadri Industries
Business impacted by weak demand, especially in roofing.
Growth of 3% in 9M FY25, compared to broader sectoral decline.
Mainly focused on West and South India markets.
Q3 performance was lower; adjusted 9-month growth to 14% from earlier 18%.
Rural consumption trends seen in FMCG do not reflect in building materials.
3. Ambuja Cements, ACC, Sanghi (Adani Group)
Combined volume from Sanghi and Penna at 1.4 MT for the quarter.
Sanghi/Penna costs 10–15% higher than Ambuja; similar reduction targeted.
North and West showed double-digit demand growth.
South saw price declines and competitive pressure.
4. Shree Cement
Focused on pricing over volumes; accepted volume loss in weak demand quarter.
Blended cement forms 70% of mix; fly ash cost declined QoQ.
Capacity utilization: North 58%, East 63%, South 40%; overall 56%.
Regional YoY volume growth: North -6%, East -8%, South -10%.
5. Dalmia Bharat
Volumes de-grew 3% YoY to 8.6 MT (excluding tolling volumes, core plants grew).
Prices improved in East and North; South remained very competitive.
Expressed confidence in stickiness of recent price hikes.
Northeast region is a key investment focus with positive growth outlook.
6. Nuvoco Vistas
Demand recovery driven by gov CAPEX, rural housing, good monsoon.
₹1,200 crore CAPEX includes Phase-2 of Waste Heat Recovery plant.
Lead distance reduced to 327 km; road transport at 64%, rail at 36%.
No tie-ups with Arcellor for slag currently; Gujarat market targeted with GGBS.
7. BigBloc Construction
Q3 impacted by Diwali and Maharashtra state elections.
Revenue declined 8% YoY, grew 10% QoQ; EBITDA dropped 62% YoY.
Moving from trading to manufacturing in construction chemicals.
Maharashtra infra (Pune, Navi Mumbai Airport) expected to drive volume recovery.
8. Birla Corporation
Strong volume growth reported in Q3; clinker utilization at 100%.
Net debt around ₹3,000 crore; annual CAPEX of ₹500 crore.
Trade volumes significantly higher than peers.
Expecting ₹150/ton EBITDA increase in H2 over H1.
9. Shri Keshav Cements
Realizations dropped 8% YoY; EBITDA/ton only ₹50 vs ₹422 South average.
New kiln expected to reduce fuel costs.
Gaining traction with institutional clients focused on quality.
Using renewable energy to improve margin profile.
10. HeidelbergCement India
100% of production is blended cement; EBITDA/ton up 16% YoY to ₹659.
Volume growth guidance for FY25 is 6–7%.
Debottlenecking of clinker line underway; expected by Q3 FY25.
Premium cement now forms 34% of sales mix.
11. India Cements
Segmental details: Shipping EBITDA ₹1.7 Cr, RMC ₹2.2 Cr, Windmill EBITDA -₹1 Cr.
Cement prices increased in April but saw correction in May.
Management focused on selling only non-core assets going forward.
12. JK Cement
Targeting ₹150–200/ton improvement in realization over time.
Bihar clinker line to go live by January; other expansions by December.
No significant pricing impact from competition as of now.
13. JK Lakshmi Cement
Industry growth guided at 4–5% in FY25.
₹800 crore consolidated CAPEX; 5 MTPA East capacity to go live by FY28.
Net debt at ₹1,750 crore (consolidated); premium sales at 11%.
Prices in core markets up by ₹20–25/bag QoQ.
14. Sagar Cements
Construction and rural activity picking up; demand outlook improving.
Fuel cost at ₹1,466/ton; EBITDA/ton close to ₹350–400.
₹88 crore spent on CAPEX; ₹241 crore remaining over next 18 months.
15. Star Cement
Q3: Trade share at 51%, premium at 12%; lead distance 222 km.
Received ₹43 crore in incentives; costs impacted by one-off clinker purchase.
Expecting cost savings from reduced freight in Q4.
Net debt stood at ₹420 crore in December.
View:
The 3QFY25 management commentary from leading cement companies reflects a mixed bag of optimism and challenges. While demand recovery is visible in some regions—driven by government CAPEX, rural housing, and infrastructure push—pricing pressures and weak volume trends persist in South India. Most companies are prioritizing profitability over volumes, managing input costs, and pushing for premium products. CAPEX plans remain intact, with strategic expansions focused on East, Northeast, and export logistics. Fuel costs have stabilized, and companies are banking on price stickiness and market discipline for margin improvement in FY26.