Nuvoco Vistas recently released its Q3FY25 results, reporting a significant loss despite an increase in sales. In Q3FY25, the company’s consolidated revenues were ₹2,409.40 crore, slightly lower than the estimated ₹2,380.70 crore. This figure represents a 0.5% decrease year-on-year but a 6.2% increase quarter-on-quarter. The consolidated EBITDA for the same period was ₹258.20 crore, lower than the expected ₹301.50 crore, marking a 37.1% decrease year-on-year and an 18.1% increase quarter-on-quarter. The EBITDA per tonne for Q3 came in at ₹549, which is lower than the estimated ₹701, showing a 46.2% decrease year-on-year and a 5.5% increase quarter-on-quarter. The company reported a loss of ₹61.30 crore in PAT for Q3FY25, significantly lower than the expected profit of ₹3.2 crore and a stark contrast to the ₹31 crore profit recorded in Q3FY24.
Nuvoco Vistas successfully acquired Vadraj Cement through the insolvency resolution process. The company is likely to require additional funds to complete this acquisition while aiming to keep its net debt below ₹4,000 crore, compared to the current level of ₹4,350 crore.
In light of these results and developments, we have revised our EPS estimates for FY26/27 by -9.9% and 19% respectively. We maintain a ‘Hold’ rating for the stock with a revised target price of ₹386. The management remains optimistic about cement volume growth, projecting a 10% increase in FY26. Additionally, they anticipate a continued upward trend in cement prices, with further price hikes expected in the near future.
