Cement industry in a slowdown, profitability shrinks further | The Business Standard
Skip to main content
  • Latest
  • Economy
    • Banking
    • Stocks
    • Industry
    • Analysis
    • Bazaar
    • RMG
    • Corporates
    • Aviation
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • Subscribe
    • Get the Paper
    • Epaper
    • GOVT. Ad
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
The Business Standard

Thursday
July 24, 2025

Sign In
Subscribe
  • Latest
  • Economy
    • Banking
    • Stocks
    • Industry
    • Analysis
    • Bazaar
    • RMG
    • Corporates
    • Aviation
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • Subscribe
    • Get the Paper
    • Epaper
    • GOVT. Ad
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
THURSDAY, JULY 24, 2025
Cement industry in a slowdown, profitability shrinks further

Stocks

Mahfuz Ullah Babu
05 May, 2022, 10:25 pm
Last modified: 14 February, 2023, 09:16 pm

Related News

  • Sylhet sets benchmark in sustainable waste management with country's first Material Recovery Facility
  • Cement firms struggle amid weak demand, rising rates, high taxes
  • Cement makers accumulate Tk140cr loss in four days
  • Concrete that could turn buildings into giant batteries
  • ‘Dhalai Special Cement’ dealer inaugurated in Khulna

Cement industry in a slowdown, profitability shrinks further

Gross profit margin declines about 5-9% in January-March

Mahfuz Ullah Babu
05 May, 2022, 10:25 pm
Last modified: 14 February, 2023, 09:16 pm

The cement industry has passed another bad quarter through March this year as a slowdown appeared to be its fresh headache on top of the pains of shrinking profit margins.

An average of a 20% price hike since the end of December caused a slowdown while an even faster cost escalation did not allow cement manufacturers to retain their already-squeezed profitability.

February-April is the peak season for the cement industry, but cement sales during the months this year declined, compared to the October-December quarter and the same season last year, said Bangladesh Cement Manufacturers Association (BCMA) Vice President, Md Shahidullah.

Masud Khan, an advisor to the board of Crown Cement, told The Business Standard that the industry sold 3.84% fewer bags of cement in the January-March quarter, compared to that in the previous quarter.

The Business Standard Google News Keep updated, follow The Business Standard's Google news channel

Both the industry professionals said the slowdown was a consequence of the sharp rise in construction costs which forced many builders to halt projects to wait and see if construction rod and cement prices ease. 

The cement industry that direly needs at least a 15% gross profit margin – the ratio of product price to production cost – for survival, entered single digit territory for the first time in years late last year and it continued to shrink further, added Shahidullah.

Cement mills did raise prices in the January-March quarter, roughly 20% according to Masud Khan, but it was not enough to offset the rising cost of raw materials.

Shahidullah said the increased prices went halfway to the cost hike because the market is too competitive.

An analysis of publicly listed cement mills suggests the gross profit margin of the companies drastically dropped to 8%-9% in the October-December quarter of 2021, from around 15% a year ago.

However, the industry was registering a sales growth that helped companies save their bottom line to some extent.

Now the slowdown has further dragged profits down, said BCMA's Shahidullah, managing director of Metrocem Cement.

Listed firms such as Crown Cement, HeidelbergCement, and Premier Cement saw their gross profit margins drop 5%-9% in the January-March quarter.

Clinker price at source increased over 80% to a near record high since July last year, while freight charges spiralling up, only kept adding to the cost of raw materials, said Khan.

LafargeHolcim Bangladesh, which has a unique advantage of sourcing clinker from its Meghalaya, India mines and transporting that to its Chatak plant by conveyor belt, is maintaining its gross profit margin of over 28% as it is not a victim of the skyrocketing global market for raw materials.

Its high-profit business of aggregate selling also contributes to its superior profitability nowadays, according to analysts.

The cement industry that has been in a price war amid overcapacity is trying to slightly reduce retail prices most recently to avert a continuation of the slowdown, said Khan.

Shahidullah is concerned about the rising pressure on profitability as costs are not going down and even the global market signals no cooling immediately.

Except for LafargeHolcim Bangladesh, and Meghna Cement, the other three listed cement manufacturers posted a drastic decline in their earnings per share for the January-March quarter.

Top News

Cement Industry / Profit falls / cement

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • Infographics: TBS
    Stay orders won’t shield defaulters: BB governor 
  • Infographics: TBS
    How state-owned Gazi Wires sinks into losses due to reliance on govt procurement
  • Representational image/Reuters
    Dollar gets upward push as BB buys $10m more in auction at even higher rate

MOST VIEWED

  • Photo: Collected
    Bangladeshi man jailed for life in UK for murdering wife in front of their baby
  • Ctg port authority halts contractor recruitment for Kamalapur ICD operations for two months
    Ctg port authority halts contractor recruitment for Kamalapur ICD operations for two months
  • Fire at Cosmo School in Mirpur on 23 July 2025. Photo: TBS
    Fire breaks out at Cosmo School in Mirpur following generator explosion
  • Representational image. File Photo: Rajib Dhar/TBS
    Debate arises as edu adviser says postponed HSC exams of 22 and 24 July will be held on same day
  • The Government Seal of Bangladesh
    Govt mulls allowing trade unions with 20 workers, industry leaders warn of disorder
  • Photo: CA Press Wing
    Stronger stance needed on maintaining law and order: Political parties to CA

Related News

  • Sylhet sets benchmark in sustainable waste management with country's first Material Recovery Facility
  • Cement firms struggle amid weak demand, rising rates, high taxes
  • Cement makers accumulate Tk140cr loss in four days
  • Concrete that could turn buildings into giant batteries
  • ‘Dhalai Special Cement’ dealer inaugurated in Khulna

Features

Photo: Collected

24 July: More than 1400 arrested, 3 missing coordinators found

7h | Panorama
Photo: Mehedi Hasan/TBS

Aggrieved nation left with questions as citizens rally to help at burn institute

1d | Panorama
Photo: Mehedi Hasan/TBS

Mourning turns into outrage as Milestone students seek truth and justice

1d | Panorama
Illustration: TBS

Uttara, Jatrabari, Savar and more: The killing fields that ran red with July martyrs’ blood

2d | Panorama

More Videos from TBS

ISPR reports 31 dead, official tally 29

ISPR reports 31 dead, official tally 29

8h | TBS Today
13 political parties meet with chief advisor; urge to announce election date

13 political parties meet with chief advisor; urge to announce election date

9h | TBS Today
Bangladesh and Pakistan unite to fight drugs

Bangladesh and Pakistan unite to fight drugs

9h | TBS Today
Case Study of Milestone Tragedy

Case Study of Milestone Tragedy

10h | TBS Today
EMAIL US
contact@tbsnews.net
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Advertisement
  • Privacy Policy
  • Comment Policy
Copyright © 2025
The Business Standard All rights reserved
Technical Partner: RSI Lab

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - oped.tbs@gmail.com

For advertisement- sales@tbsnews.net