Earnings, which met analyst expectations, surpassed the Rs 36.43 crore net profit in the September quarter.
The company’s performance contrasts with most other cement producers in India whose profits are seen declining sequentially in the three months ended December. This was largely due to price revisions following goods and services tax (GST) changes, which impacted realisations.
Consolidated revenue at the country’s fifth-largest producer of the building material rose 12% from a year earlier to Rs 2,701 crore in the December quarter. Sales volume grew by 7% to 5 million tonnes.
Ebitda during the quarter surged 50% on-year to Rs 386 crore.
“Despite early macroeconomic challenges from prolonged monsoon and festivities that softened demand in October and November, December saw healthy double-digit growth, demonstrating strong recovery momentum,” said Jayakumar Krishnaswamy, managing director. “The company delivered its highest-ever third quarter volume and a 50% YoY rise in Ebitda, driven by a sustained focus on premiumisation and operational excellence.”
Nuvoco’s premiumisation for the quarter reached 44%–an all-time high—for the second quarter in a row.The company is aiming to expand annual capacity by 10 million tonnes to 35 MT by the next fiscal year. This would be backed by a 4-million-tonne organic expansion in east India, and the acquisition of Vadraj Cement in west India, which has a capacity of 6 million tonnes.
Nuvoco currently has a presence only in east and north India, and with Vadraj, it will have 17% of its capacity in west India. Over the medium term, the company will consider a brownfield expansion at Chittorgarh (Rajasthan), and a greenfield expansion at Gulbarga (Karnataka), according to an investor presentation.
Nuvoco ended the December quarter with a debt of Rs 4,217 crore, up from Rs 3,492 crore as of September-end. Debt fell from Rs 4,350 crore in December 2024.
