Latest news with #SystematixResearch
India Gazette
5 days ago
- Business
- India Gazette
Cement demand to grow 6-7.5% in FY26 amid recovery in infrastructure and housing: Report
New Delhi [India], June 3 (ANI): The Indian cement industry is likely to see a demand growth of 6 to 7.5 per cent in the current financial year (FY26), according to a report by Systematix Research. The report highlighted that with consolidation-led discipline taking hold and strong momentum in infrastructure and housing sectors, the industry is entering a more stable and profitable phase. It said, 'With consolidation-led discipline settling in and momentum building in infrastructure and housing, industry demand is expected to grow by 6-7.5 per cent in FY26'. The report noted that the sector exited FY25 on a stronger footing. The last quarter of the previous financial year saw a visible recovery in both demand and pricing after a slow first half. Increased government capital expenditure towards the end of FY25 helped revive construction activity in major markets. The report said 'Cement volume for companies under our coverage grew by 11 per cent after a slow H1 due to an upswing in commercial activity and a ramp-up in government execution. In FY25, the cement industry ended with a capacity of about 655 MTPA (+4.8 per cent YoY). This also supported price hikes, which were partially absorbed in regions like the East and North. In May 2025, the report added that the cement companies attempted price hikes across different regions, ranging from Rs 5 to Rs 10 per bag. However, due to weak demand in several areas, the absorption of these hikes remained limited. Regional factors such as early monsoons and heat waves played a key role in affecting demand. In the East, demand dropped sharply due to early monsoons, but prices still rose by Rs 46 per bag. The South faced flat demand conditions as heat waves impacted construction activities. As a result, price hikes in the region are expected to be postponed to the second quarter of FY26, since the fourth quarter remained muted. Meanwhile, the report mentioned that central India recorded a modest hike of Rs 2 per bag, and Northern markets saw better traction, with prices increasing by Rs 20-30 per bag. Despite these regional challenges, the average cement price across India rose 1.6 per cent month-on-month in May 2025, reaching Rs 367 per bag. The industry also benefited from a favourable cost environment and improving capacity utilisation, further supporting a positive outlook for FY26. (ANI)
Mint
5 days ago
- Business
- Mint
Cement demand to grow 6-7.5% in FY26 amid recovery in infrastructure and housing: Report
New Delhi [India], June 3 (ANI): The Indian cement industry is likely to see a demand growth of 6 to 7.5 per cent in the current financial year (FY26), according to a report by Systematix Research. The report highlighted that with consolidation-led discipline taking hold and strong momentum in infrastructure and housing sectors, the industry is entering a more stable and profitable phase. It said, "With consolidation-led discipline settling in and momentum building in infrastructure and housing, industry demand is expected to grow by 6-7.5 per cent in FY26". The report noted that the sector exited FY25 on a stronger footing. The last quarter of the previous financial year saw a visible recovery in both demand and pricing after a slow first half. Increased government capital expenditure towards the end of FY25 helped revive construction activity in major markets. The report said "Cement volume for companies under our coverage grew by 11 per cent after a slow H1 due to an upswing in commercial activity and a ramp-up in government execution. In FY25, the cement industry ended with a capacity of about 655 MTPA ( 4.8 per cent YoY). This also supported price hikes, which were partially absorbed in regions like the East and North. In May 2025, the report added that the cement companies attempted price hikes across different regions, ranging from ₹ 5 to ₹ 10 per bag. However, due to weak demand in several areas, the absorption of these hikes remained limited. Regional factors such as early monsoons and heat waves played a key role in affecting demand. In the East, demand dropped sharply due to early monsoons, but prices still rose by ₹ 46 per bag. The South faced flat demand conditions as heat waves impacted construction activities. As a result, price hikes in the region are expected to be postponed to the second quarter of FY26, since the fourth quarter remained muted. Meanwhile, the report mentioned that central India recorded a modest hike of ₹ 2 per bag, and Northern markets saw better traction, with prices increasing by ₹ 20-30 per bag. Despite these regional challenges, the average cement price across India rose 1.6 per cent month-on-month in May 2025, reaching ₹ 367 per bag. The industry also benefited from a favourable cost environment and improving capacity utilisation, further supporting a positive outlook for FY26. (ANI)
India Gazette
6 days ago
- Business
- India Gazette
India's GDP growth in Q4FY25 looked strong but hides weakness: Report
New Delhi [India], June 2 (ANI): India's GDP growth for the January-March quarter of 2024-25 looked strong on the surface, but it hides several weaknesses, highlighted a report by Systematix Research. The report said the growth is still mainly driven by government spending, especially on construction, while the manufacturing sector remains weak. It said 'the upside surprise in Indian 4QFY25 GDP growth makes a robust headline, but it masks underlying weaknesses. It continues to be dependent on public spending-led construction'. The report mentioned that there are many signs that the headline GDP growth may not reflect the real state of the economy. For example, money supply grew much slower than nominal GDP, which raises questions about the accuracy of the growth numbers. Also, personal consumption spending grew much faster than the sales volume of consumer companies, showing a mismatch. While government capital spending rose sharply, private investment likely fell, showing that public spending is not creating the expected boost to the economy. Demand in the economy also remained low due to weak household income, slower retail lending, and lower government subsidies. Net indirect taxes rose to the highest level since June 2018, which further added to pressure on demand. The report said, 'Despite a reduced external deficit, contraction in total trade indicates slowing global and domestic demand, highlighting a disconnect between reported GDP figures and the on-ground economic situation'. Looking ahead, hopes are resting on rural consumption picking up, supported by a strong agriculture sector. But with private investment still weak and global conditions uncertain, recovery may remain slow. The Reserve Bank of India is expected to ease policies to support demand, especially if inflation stays low. However, the report notes that low inflation is mostly due to weak demand and incomes. The report added, 'This bidirectional causality can be broken only with a turnaround in productive employment, which has been lacking in the wake of rising ruralisation and private capex'. The report also warned of global risks, including panic buying in global trade ahead of possible new US tariffs under Trump, which could lead to stagflation in the US. This will not help India, as its trade-to-GDP ratio is already shrinking. (ANI)
Time of India
6 days ago
- Business
- Time of India
India's GDP growth in Q4FY25 looked strong but hides weakness: Report
India's GDP growth for the January-March quarter of 2024-25 looked strong on the surface, but it hides several weaknesses, highlighted a report by Systematix Research. The report said the growth is still mainly driven by government spending, especially on construction, while the manufacturing sector remains weak. It said "the upside surprise in Indian 4QFY25 GDP growth makes a robust headline, but it masks underlying weaknesses. It continues to be dependent on public spending-led construction". The report mentioned that there are many signs that the headline GDP growth may not reflect the real state of the economy. For example, money supply grew much slower than nominal GDP, which raises questions about the accuracy of the growth numbers. Also, personal consumption spending grew much faster than the sales volume of consumer companies, showing a mismatch. While government capital spending rose sharply, private investment likely fell, showing that public spending is not creating the expected boost to the economy. Demand in the economy also remained low due to weak household income, slower retail lending, and lower government subsidies. Net indirect taxes rose to the highest level since June 2018, which further added to pressure on demand. The report said, "Despite a reduced external deficit, contraction in total trade indicates slowing global and domestic demand, highlighting a disconnect between reported GDP figures and the on-ground economic situation". Looking ahead, hopes are resting on rural consumption picking up, supported by a strong agriculture sector. But with private investment still weak and global conditions uncertain, recovery may remain slow. The Reserve Bank of India is expected to ease policies to support demand, especially if inflation stays low. However, the report notes that low inflation is mostly due to weak demand and incomes. The report added, "This bidirectional causality can be broken only with a turnaround in productive employment, which has been lacking in the wake of rising ruralisation and private capex". The report also warned of global risks, including panic buying in global trade ahead of possible new US tariffs under Trump, which could lead to stagflation in the US. This will not help India, as its trade-to-GDP ratio is already shrinking.
Time of India
6 days ago
- Business
- Time of India
‘Strong GDP, weak pulse': India's growth masks deep economic faultlines, says report
NEW DELHI: India's GDP growth for the January-March quarter of FY25 may have surprised on the upside, but a new report warns that the robust headline figure masks an economy still struggling under the surface. Systematix Research, in a sharp critique, said the 4QFY25 growth 'continues to be dependent on public spending-led construction,' while key indicators point to deeper structural weaknesses. 'The upside surprise in Indian GDP growth makes a robust headline, but it masks underlying weaknesses,' the report stated. Cracks behind the headline numbers Among the red flags, the report noted that money supply grew much slower than nominal GDP, raising concerns about the credibility of the growth data. Additionally, personal consumption expenditure grew faster than the actual sales volume of consumer goods, indicating a disconnect between reported demand and real consumption. While government capital spending surged, private investment likely contracted. 'Public spending is not crowding in private investment,' the report noted, suggesting that the government's infrastructure push is failing to stimulate broader economic momentum. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Gentle Japanese hair growth method for men and women's scalp Hair's Rich Learn More Undo Demand still fragile Household income remains under stress, retail lending growth has slowed, and reduced government subsidies have added to the pressure. Net indirect taxes rose to their highest level since June 2018, which the report said has further squeezed demand. Meanwhile, even as the current account deficit narrowed, the total trade contraction signals weakening domestic and global demand. 'There is a growing disconnect between reported GDP figures and the on-ground economic situation,' the report said. Outlook hinges on rural consumption Systematix points to rural demand revival and agricultural strength as key to future growth. But with private capex still elusive and global uncertainties mounting, a meaningful recovery may remain sluggish. While the Reserve Bank of India may step in with easing measures if inflation stays low, the report warns that low inflation itself reflects weak incomes and demand, not price stability. Global headwinds ahead On the international front, the report cautioned that panic buying in global trade, in anticipation of possible tariffs under a second Trump administration, could push the US towards stagflation, a risk that would ripple through emerging markets like India. With India's trade-to-GDP ratio already falling, the country may find itself exposed to external shocks without the cushion of strong export performance. 'In the absence of a turnaround in productive employment,' the report concludes, 'India's growth story risks becoming increasingly imbalanced and fragile.' Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
