Sagar Cements had a disappointing performance in Q2 FY25 due to adverse weather conditions and a slowdown in government project execution.
The cement industry is facing challenges with weak cement prices and a sluggish demand landscape affecting overall performance.
Despite these challenges, Sagar Cements aims to achieve a volume growth of 5-7 percent for FY25 by increasing production in underutilized plants.
The company's quarterly performance was partially supported by better realizations, although valuations remain high.
In the medium term, the cement sector may benefit from protective measures in the tyre industry and developments in China.