Nuvoco Vistas (NUVOCO) Q4 16/17 earnings summary

Executive summary

• FY17 cement sales volume was flat at 9,656 KT, while revenue from operations declined 2% YoY to ₹5,832 crore and PAT fell to ₹166 crore from ₹231 crore.

• EBITDA before exceptional items rose 1% to ₹758 crore, supported partly by lower royalty and managerial and technical fees; finance costs rose sharply after the merger.

Financial highlights

• Revenue from operations was ₹5,832 crore, down 2% YoY; net sales after excise duty were ₹5,157 crore versus ₹5,279 crore.

• EBITDA before exceptional items was ₹758 crore, up 1% YoY, with a 13% margin; exceptional items were ₹17.81 crore.

• PBT after exceptional items was ₹196 crore, down 47% YoY; PAT was ₹166 crore versus ₹231 crore, and EPS was ₹2.08 versus ₹5.06.

• Finance costs increased 163% YoY to ₹231 crore, principally due to debentures transferred in the Nirchem merger.

Outlook and guidance

• FY18 cement demand was expected to grow ~5%, led by government infrastructure spending, rural development and affordable housing initiatives.

• Operational excellence, innovation and higher premium-product sales were identified as priorities to support future performance.