New Delhi, Apr 13 (BNP): Rising energy costs are expected to weigh on the profitability of cement manufacturers, potentially compressing operating margins by up to 200 basis points, according to a report by Crisil.
The report noted that higher fuel and power expenses remain a key concern for the sector, even as demand conditions stay relatively stable. Cement production is energy-intensive, making manufacturers particularly sensitive to fluctuations in input costs.
It added that companies may face margin pressure if energy prices remain elevated, unless they are able to pass on higher costs through price increases or improve operational efficiency.
Overall, the outlook suggests cautious profitability for the sector in the near term amid persistent cost headwinds.
