South-based India Cements on Wednesday said cement consumption was expected to go up in the country with the government increasing the investment in infrastructure projects. It also said its capacity utilisation is expected to improve further, building on the momentum gained in the second quarter of the current fiscal.
Speaking at the 75th AGM of the company, N Srinivasan, vice-chairman & MD, India Cements, said in the first quarter of FY22, the company reported an impressive performance despite the Covid second wave. During the quarter, it operated at 50% against 35% in the corresponding quarter last year, and it was expected to improve further.
The new government in Tamil Nadu has started giving a push to housing and infrastructure development. Andhra Pradesh and Telangana governments are also implementing irrigation, road and infrastructure projects apart from new housing schemes. “All these developments give room for cautious optimism for cement demand in the coming months. As the demand picks up, capacity utilisation will go up,” Srinivasan said. He added the company repaid `551-crore debt in FY21 and it hoped to repay an equal amount this year depending on the Covid impact.