Cement prices rise Rs 25 per bag in February
Cement prices increased by Rs 24-25 per bag of 50 kg in February as compared to the previous month amid falling cost and rising demand growth, according to a report.
The hike in the cement prices came after a "protracted stall" following the rollout of the goods and services tax in July 2017, said CRISIL Research in its report.
The increase would help the cement industry increase profitability and margins, it added.
"The recent steep hikes in cement prices will boost the operating profitability of manufacturers even as costs are descending and demand growth ascending," the report said.
The southern region had the steepest hike, where Hyderabad witnessed a rise of Rs 77 per bag, followed by Rs 62 per bag in Chennai and Rs 52 per bag in Bengaluru.
While other regions had a moderate increase, with Rs 26 in the west followed by Rs 12 in the east, Rs 7 in the central region, and Rs 4 per bag in the north, the report said.
"This upends the downtrend in cement prices seen since the rollout ..