NEW DELHI, Sept. 17 -- Covid-led disruptions in construction activity during the first wave in March 2020 had taken a massive toll on the volume growth of Indian cement manufacturers. At that time, a low-cost inventory and cost rationalization were the only upsides available for investors.
In the recently concluded June quarter, mobility restrictions in various states led to a decline of 20% on a sequential basis for top cement manufacturers. But this time, the benefit of cheap inventory has waned; in fact, cement makers are now battling cost inflation.
Prices of key input commodities such as petroleum coke, imported coal and diesel, which together account for more than 50% of production costs, continue to remain elevated.
As for cement ...