ICR reviews the quarterly results of a few cement manufacturers. Shree Cement performed exceedingly well beyond expectations. No other cement company will be able to match the number produced by Shree Cement.

Industry was expecting investment booster to the economy through various construction and infrastructure projects post-polls, and the demand was affected as these hopes were belied.

Prices continuing to spike, steeply at times, for the last four months is highlighting the pricing power of the industry, but their sustainability at these levels is being doubted.

After heightened concerns following ACC’s weak results, UltraTech brought the excitement back with a strong 4QFY19 (January-March quarter of 2018-19).

Southern region, which had taken a lead in price hike actions recently, has been ahead of others in reversing their earlier actions too. This has affected the near term pricing sentiment of the overall market.

Over the past decade, the cement industry has witnessed a decline in utilisation rates, despite which, cement prices have held up fairly well. FY19 is likely to end with near double-digit demand growth, which will also take up utilisation.

There is no respite in growth in demand. Taking cue from this development, some medium and small players are testing the market with small hikes.

Though cement demand is expected to grow in double digits during FY19 (2018-19) with pre-election thrust to infrastructure, the unit EBITDA (Earnings before interest, tax, depreciation and amortisation) margins are shrinking, due to prices remaining low, said the leading brokerage CLSA.

The April-June 2018 (Q1) report card of some major cement companies is out, and it has highlighted the major and persistent structural concern affecting the industry - the absence of price hikes.