Nuvoco Vistas (NUVOCO) Q4 22/23 earnings summary

Executive summary

• FY 2022-23 combined strong cement demand in East and North India with elevated fuel, raw-material and distribution costs; revenue grew while EBITDA and margins declined.

• Consolidated cement sales reached 18.8 MMTPA, up 5% YoY; revenue from operations rose 13.61% to ₹10,586.17 crore.

• Consolidated PAT was ₹15.86 crore, versus ₹32.08 crore in FY22; reported results included a ₹405.80 crore exceptional provision for incentive claims and a ₹468.86 crore deferred-tax credit.

Financial highlights

• Consolidated EBITDA was ₹1,223.59 crore, down 20.48% YoY from ₹1,538.78 crore; EBITDA margin fell to 12% from 16%.

• Consolidated PBT was a loss of ₹645.24 crore, including the ₹405.80 crore exceptional provision; tax expense was a credit of ₹661.10 crore.

• Operating cash flow was ₹1,711.40 crore versus ₹1,220.85 crore; net cash inflow was ₹89.36 crore versus a ₹389.72 crore outflow in FY22.

• Consolidated finance costs declined to ₹511.90 crore from ₹569.92 crore, supported by debt repayment.

Outlook and guidance

• FY 2023-24 cement demand was forecast to grow ~9% to 425 MT, supported by housing, infrastructure and industrial activity; near-term input-cost and seasonal pressures remained risks.

• The 1.2 MMTPA Haryana grinding unit was expected to lift installed cement capacity to 25 MMTPA, with benefits anticipated from Q4 FY24; Risda and Nimbol clinker debottlenecking was also progressing.

• Near-term priorities included debt reduction and capex for sustainability, debottlenecking, payback-based projects and expansion in North India.

• Carbon-intensity targets included a 2% YoY reduction and cement emissions of 445 kg CO₂ per tonne of cementitious materials by 2025.