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Informist, Tuesday, Jul. 14, 2026

 

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--Nuvoco Vistas: Cement demand outlook positive, led by govt capex
--CONTEXT: Nuvoco Vistas mgmt's comments in post-earnings call with analysts
--Nuvoco Vistas: Overall costs rose INR 240/tn in Apr-Jun
--Nuvoco Vistas: Power, fuel costs rose INR 40/tonne in Apr-Jun
--Nuvoco Vistas: Raw material costs rose INR 35-INR 40/tn in Apr-Jun
--Nuvoco Vistas: Took INR 10 INR 15 price hike/50 kg bag in Apr-Jun
--Nuvoco Vistas: Faced bag shortage on geopolitical issue with Bangladesh Q1
--Nuvoco Vistas: Packaging costs up INR 50/tn in Apr-Jun
--Nuvoco Vistas: Pet coke reserves to help limit fuel cost inflation Q2
--Nuvoco Vistas: Have enough pet coke reserves to meet Q2 requirements
--Nuvoco Vistas: Coal supplies increased significantly in past few weeks
--Nuvoco Vistas: Will not cut cement prices to push volumes
--Nuvoco Vistas: Cement prices improved QoQ in Apr-Jun
--Nuvoco Vistas: Cement prices seen stable going forward
--Nuvoco Vistas: FY27 capex remains at INR 9 bln
--Nuvoco Vistas: Cement volume seen growing at 7-8% in coming 3 qtrs

 

By Narayana Krishna and Ashutosh Pati

 

HYDERABAD/MUMBAI – Nuvoco Vistas Corp. Ltd. expects healthy demand for cement with volume growth of 7-8% in the remaining three quarters of the current financial year. Cement prices are expected to remain stable. In a post-earnings conference call, the company's management expressed confidence that cement demand is expected to be boosted by various government projects, including central schemes.

 

For the June quarter, the company reported a 20% year-on-year jump in consolidated net profit to INR 1.60 billion. The cement maker's revenues came in at INR 31.29 billion, up 9% on year.

 

The Nuvoco Vistas management said the company expects its new plants in Gujarat to be ready for commissioning by the end of the financial year 2026-27 (Apr-Mar). The company plans to take its total capacity to 35 million tonnes by FY28. The management said it plans to increase the sales volumes in Gujarat to absorb the additional capacity.

 

The management said the company is not looking to cut prices to push volume growth. It said that despite macroeconomic and geopolitical challenges, it had managed to control costs. Its total expenses rose over 6% to INR 28.56 billion. The company's expenses during the quarter grew at a slower pace than its revenues because of the cost-saving measures, thereby driving up the bottom line. The company reported an overall cost increase of around INR 240 per tonne for the June quarter.

 

Power and fuel costs are up by INR 40 per tonne while raw material costs are up by INR INR 35-INR 40 per tonne. Packaging costs are also up by INR 50 per tonne owing to a shortage of bags. Supply of bags from Bangladesh was disrupted during the June quarter because of geopolitical issues, the management said.

 

The company said it has enough reserves of petroleum coke to meet the requirements of the September quarter, while coal supply also improved in July compared to the June quarter. These factors are likely to help the company maintain the current cost structure for the September quarter, the management said.

 

The management further said cement prices in the country improved in the June quarter sequentially, and it expects price stability across regions led by government consumption. The company expects improved demand from West Bengal in the coming months with the new government in the state expected to announce several new projects.

 

Nuvoco Vistas plans to incur capital expenditure of around INR 10 billion in FY28. The company's capital expenditure target for FY27 remains at INR 9 billion. In the June quarter, the company incurred capital expenditure of INR 3.70 billion.

 

Tuesday, Nuvoco Vistas shares ended at INR 341.40 on the National Stock Exchange, up nearly 8% from Monday.  End

 

Edited by Rajeev Pai

 

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