The company’s performance contrasts with most other cement makers in India, whose profits fell consecutively in the three months ended December. This was largely due to price revisions due to changes in the Goods and Services Tax (GST), which impacted realisations.Consolidated sales of the country’s fifth-largest building materials maker rose 12% from a year earlier to Rs 2,701 crore in the December quarter. The sales volume grew by 7% to 5 million tons.
Ebitda rose 50% year-on-year to Rs 386 crore during the quarter.
“Despite early macroeconomic challenges due to extended monsoon and festivities that dampened demand in October and November, December witnessed healthy double-digit growth, demonstrating strong recovery momentum,” said Jayakumar Krishnaswamy, Managing Director. “The company delivered its highest ever volume in the third quarter and a 50% year-over-year increase in Ebitda, driven by a continued focus on premiumization and operational excellence.”
Nuvoco’s premiumization for the quarter reached 44% – a record high – for the second quarter in a row. The company aims to expand annual capacity by 10 million tonnes to 35 tonnes by the next fiscal year. This would be supported by an organic expansion of 4 million tonnes in Eastern India and the acquisition of Vadraj Cement in Western India, with a capacity of 6 million tonnes.
Nuvoco currently has a presence only in eastern and northern India, and with Vadraj it will have 17% of its capacity in western India. In the medium term, the company will consider a brownfield expansion in Chittorgarh (Rajasthan) and a greenfield expansion in Gulbarga (Karnataka), an investor presentation said.
Nuvoco ended the December quarter with debt of Rs 4,217 crore, compared to Rs 3,492 crore at the end of September. The debt fell from Rs 4,350 crore in December 2024.
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