Coronavirus impact: Cement sector to see double digit dip in volumes

For the cement sector, recovery would be prolonged by the depressed real estate sector, muted spends on Pradhan Mantri Awas Yojana (Urban) and lower Capex (capital expenditure) by the government

The cement sector is projected to witness a double digit decline in volumes in FY21 after the outbreak and the rapid spread of Covid-19 pandemic.

Industrial and manufacturing lockdowns imposed to contain the spread of the lethal virus have led to a shrinkage in household income and sluggish business conditions, apart from posing risk of a cut in government spending on infrastructure since the fiscal deficit is widening.

“The outbreak of the pandemic has put at risk our prior thesis of a gradual recovery in cement demand in FY21. We were earlier expecting a mid single-digit growth over the slight