Cement demand is expected to improve in the next 12 to 18 months.

Moody’s said while the outlook for the cement industry looked bright, the company’s profitability had been hurt by rising petroleum coke, coal, and diesel costs for much of the current fiscal year.

India’s cement production will increase by around 6-8% in fiscal years 2023 and 2024 after rising 21% in the fiscal year ending March 2022.

The government has also allocated $9.6 billion to address the city’s housing shortage, the rating agency said.