Cement sector sees muted growth of 2-3% in Q1FY25 due to LS polls: ICRA
The cement sector has witnessed a muted growth of 2-3 per cent in the first quarter of current fiscal on account of a slowdown in construction activity because of the Lok Sabha polls, according to a report from rating agency Icra.
However, the overall volumes for the FY2024-25 are likely to expand by 7-8 per cent driven by a healthy demand from the infrastructure and housing sectors.
"Nevertheless, the government's focus on infrastructure projects, sanction of additional houses under the Pradhan Mantri Awas Yojana (PMAY), and the industrial capex is expected to meaningfully improve cement volume offtake in H2 FY2025," it said.
The report also projects further consolidation in the cement industry by the top players to increase their capacity.
The sector has witnessed consolidation by leading players such as Aditya Birla group firm UltraTech Cement and Adani group firm Ambuja Cements.
Besides, the sector is also expected to continue its organic growth in the medium term as makers ..