Cement sector has been performing well. Heidelberg Cement posted a better than estimated set of earnings. There was some margin compression but it was still better than expected. To discuss the earnings fine print and outlook, CNBC-TV18 spoke with Jamshed Naval Cooper, CEO & managing director, Heidelberg Cement.

Cooper said, “Volumes as of now seem to be strong and incoming quarters also it should remain strong if Covid third wave does not pan out. During second-wave also, the markets were open and the lockdown was not complete as seen during the first wave. So going forward, see a strong quarter one after other.”

“The year should end by overall growth in the industry close to 9-10 percent if Covid third is not a game spoiler,” said Cooper.

On pricing, he said usually during monsoon, there is a big dip, and this year too there are some dips but going forward, they would become less for the simple reason that costs have shot up through the roof and when costs go up, companies do not have room for further price compression.

“Prices will stablised close to Rs 350 per bag in the country and I think that is a good price to get as of now,” he said.

Throwing more colour on the demand picture, he said it is the rural markets that are giving a good tick. “Earlier also after Covid first wave, the demand was good and post second wave also, we are seeing good market movement in rural India,” said Cooper. On other hand, there is demand from the government side also, infrastructure demand is very good – road projects are in full swing, housing projects, elections are upcoming in UP in 2022, so investments are happening there.

So, as of now, the demand weightage is more skewed towards rural than urban, he added. However, Cooper expects rural demand to remain strong.

On the sales front, Cooper said that 20 percent of the company’s sales are premium-focussed and they plan to continue focusing on it.

On merger with Zuari Cement, Cooper said that the company is still exploring that possibility.

For the entire interview, watch the video

(Edited by : Dipika Ghosh)

First Published:Jul 23, 2021 1:15 PM IST