Cement demand likely to shrink by up to 25% in FY21 due to lockdown: Icra

Cement demand is likely to de-grow by up to 25 per cent this fiscal on account of the coronavirus lockdown and subsequent specific restrictions disrupting construction activities, ratings agency Icra said.

It further said cement manufactures may witness a compression in operating profitability by 150-200 basis points (bps) in the current financial year.

While rural housing and infrastructure projects in remote areas would support cement consumption, urban-led demand is headed for a slowdown, it said.

"ICRA expects cement demand to de-grow by 22-25 per cent in FY2021 given the prolonged nationwide lockdown and subsequent state/city specific restrictions disrupting construction activities,"