Cement demand FY22 could surpass 340 mn tonne; highest in a decade: Icra

Sustained rural housing demand and significant pick-up in infra activity seen as key drivers

Domestic cement demand is expected to be highest in the decade, estimated to surpass 340 million tonne in FY2022, driven by sustained rural housing demand and significant pick-up in infrastructure activity.

On the supply side, the capacity addition is also expected to increase by 22-25 million tonne in FY2022.

As per an Icra note, while the cement prices are expected to largely sustain at the recently increased levels supported by the improved demand, the higher input costs are likely to exert pressure on operating margins during the fiscal.

Though this is likely to result in some moderation in debt coverage metrics, they are