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Amid robust demand fundamentals and comfortable balance sheets which would help the cement sector to tide over input cost headwinds, credit rating agency, India Ratings and Research (Ind-Ra) in its latest report has maintained a neutral outlook on the cement sector for FY23 and a Stable rating Outlook on its rated cement portfolio for FY23.

According to the latest report titled ‘FY23 Cement Outlook’, the surge in commodity prices and disruptions in the global supply chain caused by the Russia-Ukraine can result in some deferral in private sector capex, while the government capex is unlikely to be dented.

The rating agency Ind-Ra further noted that by scaling up the capex to GDP ratio for FY22 to 2.6% as per revised estimate from the budgeted 2.5% and budgeting the capex at 2.9% of GDP for FY23, the government has been showing its resolve to do the heavy lifting.