Despite a mixed 1st quarter, cement sector's FY24 outlook looks concrete

However, as competition and fresh capacity is also rising, scale and ability to control costs will play a crucial role

Cement companies posted mixed figures for the first quarter of the 2023-24 financial year (Q1FY24). Volume growth was robust at 17 per cent year-on-year (Y-o-Y) -- on an aggregate basis -- for 15 cement companies, with revenue growth at 15 per cent. Aggregate earnings before interest, taxes, depreciation, and amortisation (Ebitda) were up 8.8 per cent Y-o-Y and 1.2 per cent quarter-on-quarter (Q-o-Q).

However, there were some negative factors, as realisations were down and operating costs were higher, with Ebitda per tonne falling below expectations. Realisations declined by 2.7 per cent Y-o-Y (down 0.3 per cent Q-o-Q), and operating costs