Supported by strong demand prospects, the cement capacity additions are expected to increase to around 29-32 MTPA in FY2023 from around 25 MTPA in FY2022, stated ICRA.

The cement volumes are expected to grow by 7-8% in FY2023 to around 388 million MT, stated ICRA.

ICRA in its recent report has analysed the demand-supply scenario and the input costs pressure on operating margins in FY2023 for cement companies.

The cement volumes are expected to grow by 7-8% in FY2023 to around 388 million MT aided by demand from housing, both rural and urban, and the infrastructure sectors, the agency said.

On the infrastructure segment, the significant increase by 24% in capital expenditure to Rs. 7.5 trillion in FY2023 budget estimates over FY2022 revised
estimates, led by Rs. 1.8 trillion for roads and Rs. 1.4 trillion for railways is expected to augur well for
cement demand.

Supported by strong demand prospects, the cement capacity additions are expected to increase to around 29-32 MTPA in FY2023 from around 25 MTPA in FY2022, stated ICRA.

Anupama Reddy, Vice President, Corporate Ratings, ICRA says, “In FY2023, operating income is expected to increase by around 11-13%, majorly supported by volumetric growth as well as an expected increase in net sales realisation."