Nuvoco Vistas (NUVOCO) Q4 18/19 earnings summary

Executive summary

• FY19 revenue from operations rose 4% YoY to ₹6,560 crore; EBITDA fell 9% to ₹954 crore and PAT declined 21% to ₹126 crore as input, fuel and freight costs pressured margins.

• Cement sales volume increased 6% to 11,427 KT, while cement production reached a record 10,990 KT; operating cash flow remained positive at ₹909 crore.

Financial highlights

• Total income was ₹6,612 crore versus ₹6,351 crore; profit before tax was ₹164 crore versus ₹226 crore, and PAT was ₹125.6 crore versus ₹158.1 crore.

• EBITDA margin was 15% versus 17%; finance costs declined 8% to ₹391 crore and depreciation and amortisation rose 2% to ₹399 crore.

• Cement ASP, net of excise duty, increased to ₹4,581/T from ₹4,460/T; RMX sales volume rose 7% to 3,090 thousand m³ and ASP reached ₹3,926/m³ from ₹3,912/m³.

• Operating cash flow was ₹909 crore versus ₹951 crore; capex rose to ₹547 crore from ₹217 crore, and cash and bank balances increased to ₹103 crore from ₹43 crore.

Outlook and guidance

• Cement demand was forecast to grow 7–7.2% in FY20, supported by infrastructure, roads, railways, rural development and affordable housing.

• Clinker debottlenecking at integrated plants is expected to add 10% clinker capacity; Jojobera grinding expansion adds 1.5 MTPA, taking total capacity above 13 MTPA, with commissioning targeted for October FY21.

• Waste heat recovery systems are targeted to generate ~25 MW by FY20-end; projects at remaining integrated plants were expected to become operational by FY20.