Jk Cement says a 70% increase in input costs could impact demand in the short term

Rajnish Kapur, COO, JK Cement, said on Wednesday that there was an unprecedented rise in raw material costs. He mentioned that the increase in input costs has been around 70%, which could impact demand in the short term.

“We have seen an unprecedented increase in the cost of fuel. Within a day, we have seen coal prices skyrocket and as a result there is increasing pressure at the moment in terms of cost in the coal sector. cement. Therefore, I don’t know if the impact on demand is going to be very hard; there could be a short-term impact. The increase in costs has been quite significant. We can see a price increase of more than 70%,” he said.

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Regarding the price hike, he mentioned that the company had already taken a 4-5% hike. He explained that in the northern market, the company was able to hike Rs 10 per bag.

“In March, in northern India, we were able to take a price increase of around 10 rupees per bag and even in the south, we took around 1-1.5% price increase. first four to five months to August of current year FY22 we saw price decline 4-5% YoY every month September was neutral then from October to November, we saw a price of 4-5% so we are already sitting at a price 4-5% higher year-on-year than it was in the previous financial year”, did he declare.

Upon request, he said that the cement industry normally does well in March. Giving details of the business, he said the business has completely sold out in its core market.

“March is a month where normally as an industry we do very well and so at this point in March we are seeing a pretty good increase in demand. In the markets where we operate as JK cement and our main market is North India, there we are looking at some sort of near-sold-out condition this month,” he said.

Watch the video for the full interview.

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(Edited by : Dipikka Ghosh)

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