OfBusiness Cement Dailies | 2nd November 2023

Price

• There has been no change in Cement prices as of today.
• AAC Block prices are Rs 2,500/cubic meter ex Panipat and Rs 3,300/cubic meter ex Nashik, with GST being additional.

Demand and Supply

• The supply is on schedule with a regular lead time of thirty-six hours for PPC and forty-eight hours for OPC43/53 grade Cement. Demand is frequent in the central and northern regions, and the western region is showing signs of firmness.

News

• Nuvoco Vistas sold 4.5 million tons of Cement during the second quarter of the 2024 financial year, representing a 1.2% year-on-year increase. Revenues grew by 7% to reach US$309 million, and earnings before interest, taxation, depreciation, and amortization (EBITDA) increased by 73% to US$40.4 million. The company achieved specific CO2 emissions of 462kg/t and an alternate fuel (AF) substitution rate of 14%. In the same quarter, Nuvoco completed debottlenecking projects at the Risda, Chhattisgarh, and Nimbol, Rajasthan, Cement plants, raising clinker capacity by 2,000t/day.
• Larsen & Toubro reported sales of US$6.12 billion, a 19% year-on-year increase. The infrastructure projects segment contributed sales worth US$3.36 billion, accounting for 55% of the total, with a 72% increase in order inflow. Larsen & Toubro’s net profit grew by 45% year-on-year during the quarter, reaching US$387 million.
• The India Cements Ltd. (ICL) saw its standalone net loss for the September quarter decrease to ₹81 crore from Rs 138 crore, despite continued pressure on Cement selling prices due to supply overhang and market competition. There was an immediate need for a working capital injection of Rs 250 crore. ICL started recovering advances given to group companies to increase capacity utilization and augment cash flow, with around Rs 115 crore recovered this year.

OFB’s Opinion

• There has been no official announcement regarding price increases, but they are expected soon. Bulk orders could finalized after confirming supply terms with manufacturers.