India Cements expects its sales volume in FY17 to exceed 9.6 million tonne (MT) it clocked in FY16. The company forecasts volume growth to be in the range of 7-8 percent in FY17. The company anticipates that South India is likely to lead the cement demand growth and a good monsoon is likely to trigger the sector’s growth.
The company’s EBITDA/tonne was Rs 900/tonne in FY16 and it expects a stronger EBITDA/tonne in FY17. Presently, 50% of the company’s sales come from Tamil Nadu and Kerala regions. Karnataka contributes 10-12 percent while Maharashtra and Andhra Pradesh bring in 14 percent and 12-13 percent, respectively.
India Cements is the largest producer of cement in South India and one of the largest cement manufacturer in the country.
