Nuvoco Vistas (NUVOCO) Q2 24/25 earnings summary

Executive summary

• Revenue for Q2 FY25 was INR 2,269 crores (₹2,268.58 crore), with EBITDA at INR 229 crores, reflecting a focus on cost optimization amid weak demand and a 5% YoY volume decline.

• Premium products reached a record 43% share in the trade segment, supporting better-than-industry revenue per ton.

• Operational excellence initiatives, including Project Bridge 2.0, yielded a reduction of INR 50 per ton in operating costs, with further improvements expected.

• Net loss after tax for Q2 FY25 stood at ₹85.17 crore, compared to a net profit in Q1 FY25.

• Commissioned new clinker wagon loading system at Sonadih and completed grid integration in Chhattisgarh, aiding cost savings.

Financial highlights

• Total income for Q2 FY25 was ₹2,279 Cr, down from ₹2,579 Cr in Q2 FY24 and ₹2,641 Cr in Q1 FY25.

• EBITDA margin for H1 FY25 was 11.81%, down from 13.33% in H1 FY24.

• Power and fuel costs per ton reduced by 3% quarter-on-quarter, reaching the lowest blended fuel cost in 12 quarters at INR 1.54 per Mcal.

• Distribution costs per ton declined by 1% quarter-on-quarter due to operational efficiencies.

• Net debt as of September 30, 2024, stood at INR 4,501 crores, a reduction of INR 233 crores year-over-year.

Outlook and guidance

• Management targets high single-digit volume growth in H2 FY25, expecting demand recovery post-festive season and improved government capital expenditure disbursement.

• Full-year volume growth is projected at around 4%, with optimism for demand pickup from mid-November onwards.

• Demand recovery is contingent on timely execution of government infrastructure projects and sustained improvement in pricing.

• No explicit forward-looking financial guidance provided.

• Net debt is expected to fall below INR 4,000 crores by fiscal year-end, maintaining a leverage ratio of 3x-4x EBITDA.