Nuvoco Vistas (NUVOCO) Q2 24/25 earnings summary

Executive summary

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

• Premium products reached a record 43% share in the trade segment, supporting better realizations despite a 2.7% QoQ drop in blended realization per ton.

• New clinker wagon loading system at Sonadih and grid integration in Chhattisgarh led to power cost savings.

• Net loss after tax for Q2 FY25 stood at ₹85.17 crore, compared to a net profit in Q1 FY25 and Q2 FY24.

• Project Bridge 2.0 and other operational excellence initiatives yielded a cost reduction of INR 50 per ton in Q2.

Financial highlights

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

• Distribution costs per ton declined by 1% QoQ due to operational efficiencies.

• Q2 realization per ton was INR 4,843, down INR 180 from Q1, mainly due to price declines.

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

• Net debt as of September 30, 2024, was INR 4,501 crores, a reduction of INR 233 crores YoY.

Outlook and guidance

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

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

• CapEx guidance for FY25 remains at INR 300-400 crores, with major projects nearing completion.

• Demand recovery hinges on government infrastructure and housing project execution.

• No explicit forward-looking financial guidance provided.