Nuvoco Vistas Corporation Limited has informed the Exchange about Transcript
NUVOCO · price
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Nuvoco Vistas reported its strongest-ever annual performance with cement volumes of 20.4 million tons and EBITDA of INR 1,881 crores in FY26. Q4 FY26 was a record quarter with 6 million ton volumes and EBITDA of INR 590 crores. The Vadraj Cement acquisition is progressing on schedule, with clinker and grinding units planned for commissioning between Q3 FY27 and Q1 FY28. Management highlighted significant near-term cost pressures from rising petcoke prices (Q1 fuel cost guided at INR 1.51-1.55 per million kcal vs INR 1.44 in Q4), packaging material cost increases of INR 100 per ton in April, and currency volatility, with total cost inflation estimated at ~INR 200 per ton in April. Price hikes of INR 8-12 per bag (trade) and INR 10-15 per bag (non-trade) have been taken but are not fully offsetting the cost increases. Net debt rose to INR 4,445 crores (from INR 3,640 crores) due to the Vadraj acquisition, with capex guidance of INR 900 crores for FY27 and INR 960 crores for FY28.
Near-term margin pressure is likely as cost inflation (~INR 200/ton) outpaces price hikes, though management is confident in passing on further costs. The Vadraj acquisition expands future capacity but has temporarily increased leverage, though CFO confirmed a INR 300 crores operational debt reduction and targets 2x-2.5x EBITDA. Stock may see volatility near-term due to margin headwinds, but long-term growth story from East expansion and Vadraj remains intact.