Nuvoco Vistas’ profit slumps by 80% in June quarter
Nuvoco Vistas Corp, a leading producer of cement in east India, saw its consolidated net profit slump by more than 80% on year to 2.84 crore rupees in the June quarter, weighed down by lower volumes and weaker prices during the quarter.
The fifth largest cement group in the country sold 4.8 million tonne of cement during the quarter, down from 5 million tonne in the comparable period a year ago. Its consolidated revenue from operations for the period was Rs 2,636 crores, down more than 6% from the previous year.
“The Company navigated the quarter marked by soft demand, primarily due to elections, weather-related factors, and continued pressure on pricing,” managing director Jayakumar Krishnaswamy said.
Consolidated earnings before interest, tax, depreciation and amortization for Apr-Jun stood at Rs 348 crore, down more than 13% from a year ago.
“Despite these challenges, the focus remained on strategic priorities such as value optimization, cost optimization, and operational efficiency,” Krishnaswamy said.
The company, which has an annual production capacity of 25 million tonne, derived 40% of its trade volume from the premium segment during the quarter, an all-time high. Its blended fuel cost during the quarter was also at its lowest level in 11 quarters.
Krishnaswamy sees the demand-supply imbalance and continued pricing pressure as headwinds in the near term, and said that the pace and timing of a recovery in demand will depend on the on-ground execution of infrastructure and housing projects.
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