Indian cement industry may post flat growth in FY19

The Indian cement industry is expected to post a flat growth of approximately five per cent in FY19, despite an increase in demand and a positive outlook, according to an ICRA report. The profitability margins and debt metrics of cement companies could be negatively impacted by higher petcoke, coal and diesel prices.

"The cement demand has picked up from 3QFY18 and the trend is expected to continue in 4QFY18, but the growth of the industry may remain flat at five per cent in FY19," said ICRA in its report.

Alongside this, overcapacity and moderate demand is likely to keep the country’s capacity utilisation close to 65 per cent over the medium-term.

Elsewhere in the report, the agency noted that prices have remained stable QoQ in the 3QFY18, except in Hyderabad which saw a decline of five per cent.