Nuvoco Vistas (NUVOCO) Q1 24/25 earnings summary

Executive summary

• Q1 FY 2025 was marked by soft demand due to elections, weather, labor shortages, and early monsoon, with cement sales volume at 4.8 million tonnes and revenue at ₹2,636 crore; EBITDA stood at ₹348 crore.

• Premium products comprised 40% of trade volumes, up from 37% previously, and Project Bridge 2.0 focused on value optimization and cost efficiency.

• SAP upgradation was completed, supporting digital transformation and process streamlining.

• Unaudited standalone and consolidated financial results for the quarter ended June 30, 2024, were approved by the Board and reviewed by auditors with no material misstatements noted.

Financial highlights

• Revenue for Q1 FY25 was ₹2,636.48 crore, down from ₹2,805.50 crore year-over-year; EBITDA dropped to ₹348 crore from ₹402 crore year-over-year.

• Power and fuel costs reduced to ₹515 crore in Q1 FY25, with blended fuel cost at ₹1.57/Mcal, the lowest in 11 quarters.

• Distribution costs per ton declined by 4% quarter-on-quarter due to improved logistics.

• Net debt as of June 30, 2024, stood at ₹4,358 crore, continuing a multi-year reduction trend.

• Consolidated net profit after tax was ₹2.84 crore, compared to ₹14.46 crore year-over-year; standalone net profit after tax was ₹21.68 crore, up from ₹6.15 crore year-over-year.

Outlook and guidance

• Near-term demand outlook remains uncertain, hinging on infrastructure and housing spending; pricing pressure expected to persist.

• Cement prices are expected to remain under pressure in the near term, with potential improvement post-monsoon and into Q3/Q4.

• Expansion plans to be initiated by end of FY 2025, prioritizing brownfield expansion in Chittorgarh; FY 2026 CapEx could reach ₹900–1,000 crore.

• Management remains confident of recovering disputed incentive claims and indemnification rights in ongoing legal matters.