Nuvoco Vistas (NUVOCO) Q4 17/18 earnings summary

Executive summary

• FY18 cement sales volume rose 11.8% to 10,795 KT; net sales grew 18% to ₹6,094 crore and EBITDA increased 38% to ₹1,043 crore, while PAT declined to ₹158 crore from ₹166 crore.

• Cement production reached a record 10,661 KT; clinker production was 5,872 KT, supported by higher volumes and continued leadership in Eastern markets.

Financial highlights

• Revenue from operations was ₹6,297 crore, up 8% reported; net sales, excluding excise duty, were ₹6,094 crore, up 18%. GST transition makes product sales not fully comparable with FY17.

• EBITDA was ₹1,043 crore versus ₹758 crore in FY17 before exceptional items; EBITDA margin rose to 17% from 13%.

• PBT was ₹226 crore versus ₹214 crore before exceptional items in FY17; FY17 PBT after ₹17.81 crore exceptional expense was ₹196 crore. PAT was ₹158 crore versus ₹166 crore.

• Finance costs increased 84% to ₹425 crore, mainly due to a full year of interest on NCDs, CCDs and ICDs; depreciation rose 25% to ₹392 crore.

• Operating cash flow was ₹951 crore versus ₹922 crore; cash outflow was ₹38 crore, and closing cash and cash equivalents were ₹39 crore.

Outlook and guidance

• Cement demand momentum was expected to sustain in FY19, supported by infrastructure and rural development spending, affordable housing under PMAY and pre-election spending.

• Planned FY19 initiatives include captive power and waste heat recovery systems, efficient cooler installation, Eastern plant cement-capacity debottlenecking and process optimization.

• Operational improvements, innovation and premium-product sales were identified as priorities to support performance in the coming period.