Icra cuts cement, road logistic growth outlook for FY22 due to second wave

Cement volumetric growth seen declining by 10%, road logistics at 6%

The spread of the second wave of Covid-19 infections to rural regions in the country, coupled with subsequent lockdown restrictions by several states, has affected domestic cement production in the first quarter of FY22.

Noting this demand hit, Icra ratings today revised cement volumetric growth estimates for FY22 to 10-12 per cent from 15 per cent earlier.

Cement production in April was down 11 per cent month-on-month and declined 18 per cent in May, Icra said in its report.

This is unlike last year when mostly urban areas were infected, it said. Notwithstanding the onset of monsoon, the pent-up demand is expected to