Nuvoco Vistas (NUVOCO) Q3 24/25 earnings summary

Executive summary

• Q3 FY25 cement sales volume grew 16% YoY to 4.7 million tonnes, with revenue at ₹2,409–2,410 crore and EBITDA at ₹258 crore, despite subdued prices for most of the quarter.

• Premium products made up 39% of sales, and trade sales were 71% in Q3.

• Vadraj Cement acquisition will add 3.5 MTPA clinker and 6 MTPA grinding capacity, expanding total capacity to 31 MTPA by Q3 FY27, pending NCLT approval.

• Cost optimization initiatives, including Project Bridge 2.0, led to blended fuel cost at a 13-quarter low.

• Unaudited financial results for Q3 FY25 were approved, with no material misstatements found by auditors.

Financial highlights

• Q3 FY25 consolidated revenue was ₹2,409.36 crore, up from Q2 but slightly down YoY; EBITDA was ₹258 crore.

• Net debt as of December 31, 2024, was ₹4,350 crore, reduced by ₹183 crore YoY.

• Power and fuel cost per tonne reduced by 6% QoQ to ₹987, the lowest in 13 quarters.

• Distribution cost per tonne declined by 3% QoQ to ₹1,369.

• Q3 FY25 consolidated net loss after tax was ₹61.37 crore, compared to a net profit in Q3 FY24.

Outlook and guidance

• Strong cement demand is expected, supported by unspent government capex and rural housing demand.

• Price improvements in December are expected to sustain, benefiting Q4 realizations and leverage.

• Vadraj CapEx includes ₹1,800 crore post-NCLT approval and ₹900–1,200 crore over 18–24 months for operationalization.

• The company targets net debt below ₹4,000 crore to support future investments.

• Legal remedies are being pursued for disputed incentive claims and regulatory matters.