Synopsis:
Nuvoco Vistas posts a 4,333% profit surge, trims debt, and plans major capacity expansion to meet rising construction sector demand.
A leading cement manufacturer is in the spotlight after posting a staggering 4,333% surge in quarterly net profit. Here’s a quick look at the results and what lies ahead for the company.
Nuvoco Vistas Corporation Limited‘s stock, with a market capitalisation of Rs. 14,063 crores, rose to Rs. 417, hitting a high of up to 9.2 percent from its previous closing price of Rs. 381.65. Furthermore, the stock over the past year has given a return of 13.3 percent.
Capacity Overview
The cement manufacturer is expected to deliver significant growth, with current figures showing a cement production capacity of 25 million metric tons per annum (MMTPA). Plans are in place to expand this by 6 MMTPA, which will boost the total projected cement capacity to 31 MMTPA.
Clinker capacity, a critical input for cement production, stands at 13.5 MMTPA. The company aims to add 3.5 MMTPA, resulting in a total projected clinker capacity of 17 MMTPA. This targeted expansion shows a strategic commitment to scale up operations and meet increasing demand within the construction sector.
Q1 Results Update
The company reported a revenue of Rs. 2,873 crore in Q1FY26, up 9 percent YoY from Rs. 2,636 crore in Q1FY25. However, it declined 6 percent sequentially from Rs. 3,042 crore in Q4FY25. This reflects a modest long-term growth trend, with a 3-year revenue CAGR of just 4 percent.
Net profit surged by 4,333 percent to Rs. 133 crore in Q1FY26 from Rs. 3 crore in Q1FY25, indicating a sharp YoY recovery. On a QoQ basis, however, profit declined 20 percent from Rs. 166 crore. Despite the recent jump in profits, the 3-year profit CAGR remains negative at -12 percent, and ROE growth is subdued at a 3-year CAGR of 2 percent.
Debt Management
Net debt has been steadily reduced over the past several years, falling from Rs. 6,885 crore in June 2021 to Rs. 3,474 crore projected for June 2025. This year-on-year decline highlights the company’s effective debt management strategies, resulting in a reduction of Rs. 884 crore on a like-to-like basis for the current year.
The acquisition of Vadraj has been financed in a balanced manner, with Rs. 600 crore allocated as long-term debt and the remainder through short-term bridge financing. These steps reflect sustained efforts to strengthen the balance sheet while managing expansion responsibly.
Written By Fazal Ul Vahab C H
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