Business
Emkay sees Rs 10-15 cement bag hike
The Hindu BusinessLine··19h ago
Emkay Research said cement makers have a high probability of a Rs 10-15 per bag hike from October 12 to offset costs. It projected 7-8 percent year-on-year volume growth in the first half of FY27. Spot petcoke was about 20 percent above second-quarter averages at $175 per tonne. Imported coal was about 16 percent higher at $150 per tonne.
Prism
What It Means For You
- Emkay said another sustained hike near Rs 10 per bag, about 3 percent, is needed to offset cost inflation of Rs 300-400 per tonne.
- Second-quarter earnings face an estimated sequential decline of Rs 200 to 250 per tonne from fuel bills and negative operating leverage.
- Packing costs rose as polypropylene granule rates moved above Rs 135 per kilogram.
What's Happening
- Channel checks cited in the report pointed to mid-October hikes as the busy construction season begins.
- Earlier first-quarter adjustments of Rs 10 to 15 per bag did not fully cover higher power and fuel expenses, Emkay said.
- Monsoon-period softening in July and August widened that cost gap, the note added.
Demand And Capacity Backdrop
- Delayed plant expansions are seen lifting clinker utilisation toward 79 percent by financial year 2028.
- Overall demand CAGR is pegged around 7 percent across financial years 2026 to 2028.
- Emkay expects robust demand intensity for about a year and a half, including the busy 2HFY27 season and FY28 infrastructure spend before the 1HCY29 general elections.
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