The cement industry is traversing through a challenging landscape and the anticipated upcycle in the sector does not seem likely in near-term. However, the continued improvement in cement volumes across regions is promising as it indicates that the much-awaited pricing power could return to industry once the capacity utilisation moves higher from current levels.
Despite higher costs, cement realisation pass-through continues to be limited compared to cost inflation.
Competitive intensity remains high as the industry leaders like UltraTech, Ambuja, Dalmia Bharat continue to operate at a capacity utilization of 70-75 percent and are more focused on shoring up volumes.
Sakshi Batra does a 3 point analysis of the second quarter performance of some of the large and mid-size companies in the sector to check which ones are worthy of long-term investment at this juncture.