Nuvoco Vistas up 3% after swinging back to net profit in Q3

Nuvoco Vistas gained 2.7 percent on January 31, a day after the company reported consolidated net profit of Rs 31.03 crore in the December quarter of the current financial year.

The cement company had reported a loss of Rs 75.29 crore in the year-ago period.

At 1.20 pm, Nuvoco Vistas was trading at Rs 360.3 on the National Stock Exchange (NSE), up 1.4 percent from the previous session.

The company’s revenue declined 7.04 percent on-year to Rs 2,420.98 crore.

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Declining raw material and fuel costs helped the company clock a profit despite a drop in revenue, brokerages said.

Power and fuel costs fell to Rs 449.41 crore from Rs 800.68 crore last year, while raw material costs declined to Rs 370.25 crore from Rs 468.76 crore.

Cement volumes declined 10 percent due to poor demand in the eastern region.

The company added capacity in Haryana, signalling the firm’s intent to consolidate its market share in the north.

“The completion of this project would enable the firm to bolster volume in North India. Railway-siding projects at Jajpur in Odisha and Sonadih in Chhattisgarh are progressing well and the completion of these projects augurs well for margin,” Elara Securities said.

Also Read | Nuvoco Vistas Q3 results: Net profit rises to Rs 31.03 crore despite fall in revenue

The company is prioritising debt reduction over capacity addition and would plan its next set of capex after achieving a net debt target of Rs 3,500-4,000 crore.

In addition to its expansion efforts, Nuvoco has launched five RMX plants in 9MFY24, bringing the total number of operating RMX plants across India to 56.

“The company is strategically focused on enhancing its premium product offerings, with value-added products accounting for 29 percent of the total sales volume in Q3FY24,” Choice Broking said.

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