How do you see cement prices in the current year?

It is estimated that on the back of a sharp spike in the input costs, the current fiscal year FY23 could see cement prices hikes to the tune of 6% to 13% on an average across Indian markets. This is largely going to be driven by the spike in the prices of imported coal, pet coke and crude oil on account of the worsening geopolitical situation in Ukraine.

In the last six months, the prices of coal and petcoke have already increased by around 30-50%. Cement companies will look to pass on, at least, part of the spike in input costs to the end consumer in the form of higher cement prices. The spike in Brent Crude has made fuel, power, transport and freight costs sharply higher and that is showing in operating margins.