Cement dispatches end year on a high note

Industry off-take grows by 2% YoY: Total Cement dispatches during FY20 inched up by 2% YoY and registered at 47.81mn MT compared with 46.88mn MT recorded during FY20. Overall industry growth was primarily supported by exports, which grew by 20% YoY to 7.85mn MT while domestic off-take fell by 1% YoY to 39.96mn MT.

Domestic Off-take declines by 1%: Local dispatches witnessed a decline for the first time since FY11 when the industry was affected by the widespread flooding. During the first 1HFY20, domestic off-take was under pressure due to: i) economic stabilization resulting in the slowdown of economic activity, ii) tight fiscal space restricting expenditure on public sector development projects, and iii) high interest rates and inflation limiting construction activity from the private sector

Exports rise by 20% YoY: Exports continued their inclining trend for the 3rd consecutive year, growing by 20% YoY to 7.85mn MT during FY20. The industry has been catering to newer markets including Sri Lanka and Bangladesh in a bid to keep its utilization levels high post the expansion cycle. Consequently, exports from the southern region grew by 46% YoY to 5.88mn MT during FY20.

Please find attached the detailed note.

Regards,
KASB Research

Share on facebook
Share on twitter
Share on linkedin

You may also like

What is Capital Market

In an economy, some individuals/ institutions have an idle cash surplus, while some have a cash deficit and are struggling to raise funds, that is

Read More »

Leave a comment

Your email address will not be published. Required fields are marked *

Categories

Recent Blogs

Videos/Education
KASB Securities

What is Capital Market

In an economy, some individuals/ institutions have an idle cash surplus, while some have a cash deficit and are struggling to raise funds, that is

Read More »

Archive

Follow Us