"We expect the impact to be more visible in Q1FY22, but the mid-single-digit price increases by the cement companies after Q3FY21 will help to cushion the overall impact on their per ton profitability. "Nonetheless, the localised curbs, which are effective in the majority of states, could cause cement demand to drop by more than 20 per cent in Q1FY22 from Q4FY21. "We expect cement demand from rural housing, which accounts for nearly a third of total domestic demand, to decrease to a larger extent as it is more dependent on individual customers. "Fitch expects the economic impact of the latest restrictions to be less severe than those last year, which should drive pent-up demand for cement after the curbs are eased. "This strengthened their financial structures and flexibility, which will allow them to better manage volatility from the resurgence of the pandemic in India."

Source: Economic Times May 18, 2021 12:40 UTC