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Cement makers profit may fall to 10-year low: Crisil

Wednesday 24th Aug 2011 1244

New Delhi : Cement makers profit may fall to 10-year low: Crisil Huge demand-supply mismatch might bring down cement manufacturers' profitability to the decade's lowest levels by 2012-13, Crisil Research said today.

The magnitude of the demand-supply imbalance and cost escalation will halve the cement industry's EBITDA margins from the current 20% to around 10% in 2012-13 -– the lowest level in the past 10 years," Crisil Research Head (Industry and Customised Research) Prasad Koparkar said.

Over the next two years, while cement capacities were set to rise by 60 million tonne per annum, demand would increase by a mere 30 million tonne.

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