New Delhi, Aug. 17 -- The benefit of price hikes for cement companies in the June quarter (Q1FY27) was offset by a sharp rise in raw material costs. Blended price realizations rose 5% sequentially to Rs.5,700 per tonne for companies under Axis Securities' coverage, while cement volumes grew 8%. Production cost per tonne rose 11% sequentially and 5% year-on-year, dragging Ebitda per tonne down 7% sequentially and 16% year-on-year to Rs.1,005.

Power and fuel, which account for about 30% of the sector's total costs, were the main culprits. Supply-chain disruptions following the West Asia war made imported petroleum coke and coal more expensive. Freight and packaging costs also rose amid higher diesel and polypropylene granule prices.





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