Nuvoco Forecasts Rs 130 bn FY27 Revenue
ECONOMY & POLICY

Nuvoco Forecasts Rs 130 bn FY27 Revenue

Nuvoco Vistas Corp expects FY27 revenue to top Rs 130 billion (bn) as cement volumes gather pace, the company announced. The figure equates to Rs 130 bn after conversion from crore denominated targets and reflects management guidance for the next financial year. The chief executive outlined that prior constraints had limited volume growth but that recovery in demand during June and July had helped performance.

The company expects costs to rise by Rs 100 to 120 per tonne (t) in the ongoing second quarter owing to monsoon related kiln maintenance shutdowns, higher fixed costs, and normal inflation in raw materials and diesel. Management indicated that fuel costs should not increase materially this quarter after securing petroleum coke supplies. The firm reported that pricing discipline had been restored across the industry and that any further input cost escalation would be met with price adjustments to protect margins.

Nuvoco anticipates the domestic cement industry to grow seven to eight per cent in FY27 and has no plans to expand into South India over the next five to seven years because of lower capacity utilisation and weaker returns in that market. The company said priorities include strengthening the premium product portfolio, improving the trade sales mix, and maintaining capacity utilisation at around 80 per cent. Maintaining a disciplined cost structure remains central to its strategy.

Premium products currently account for around 44 per cent of the portfolio and the company aims to lift that share to over 50 per cent during FY27 to enhance margins and profitability. The sales mix presently stands at a 75:25 non trade to trade ratio and integration of the Gujarat business will temporarily increase the non trade share before it is restored over 24 to 36 months. In the first quarter of FY27 consolidated profit after tax rose 19.97 per cent year on year to Rs 1.598 bn, revenue from operations was Rs 31.29 bn and the company reported a quarterly earnings before interest, tax, depreciation, and amortisation (Ebitda) of Rs 5.72 bn.

Nuvoco Vistas Corp expects FY27 revenue to top Rs 130 billion (bn) as cement volumes gather pace, the company announced. The figure equates to Rs 130 bn after conversion from crore denominated targets and reflects management guidance for the next financial year. The chief executive outlined that prior constraints had limited volume growth but that recovery in demand during June and July had helped performance. The company expects costs to rise by Rs 100 to 120 per tonne (t) in the ongoing second quarter owing to monsoon related kiln maintenance shutdowns, higher fixed costs, and normal inflation in raw materials and diesel. Management indicated that fuel costs should not increase materially this quarter after securing petroleum coke supplies. The firm reported that pricing discipline had been restored across the industry and that any further input cost escalation would be met with price adjustments to protect margins. Nuvoco anticipates the domestic cement industry to grow seven to eight per cent in FY27 and has no plans to expand into South India over the next five to seven years because of lower capacity utilisation and weaker returns in that market. The company said priorities include strengthening the premium product portfolio, improving the trade sales mix, and maintaining capacity utilisation at around 80 per cent. Maintaining a disciplined cost structure remains central to its strategy. Premium products currently account for around 44 per cent of the portfolio and the company aims to lift that share to over 50 per cent during FY27 to enhance margins and profitability. The sales mix presently stands at a 75:25 non trade to trade ratio and integration of the Gujarat business will temporarily increase the non trade share before it is restored over 24 to 36 months. In the first quarter of FY27 consolidated profit after tax rose 19.97 per cent year on year to Rs 1.598 bn, revenue from operations was Rs 31.29 bn and the company reported a quarterly earnings before interest, tax, depreciation, and amortisation (Ebitda) of Rs 5.72 bn.

Related Stories

Gold Stories

Next Story
Infrastructure Urban

Sabarmati Riverfront Two Plots Up for Auction at Rs2.24 bn Base Price

Two commercial plots on the western bank of the Sabarmati Riverfront will be auctioned with a base price of Rs 112 crore each, equivalent to Rs 1.12 bn apiece and Rs 2.24 billion in total. The parcels are located adjacent to the Metro Rail Bridge in Ahmedabad and form the first commercial offering after a prolonged pause. The Riverfront Development Corporation has framed the sale as part of a phased commercial release to revive development along the riverfront. The combined base valuation has been set by the corporation to reflect market rates along the riverfront. The corporation has fixed a ..

Next Story
Infrastructure Urban

Andhra Pradesh to Connect Over One Million Streetlights

Andhra Pradesh will undertake a statewide smart streetlighting programme across all 123 Urban Local Bodies (ULBs), bringing around 1.05 million (mn) streetlights under an AI enabled monitoring and management system. The programme will be implemented by Energy Efficiency Services Limited (EESL) with the Commissioner and Director of Municipal Administration under the state Municipal Administration and Urban Development Department. The project aims to convert conventional streetlighting into a digitally managed municipal service monitored and maintained remotely. The initial phase will cover abou..

Next Story
Infrastructure Urban

AMC To Procure Four Machines For Guard Rail Cleaning

Ahmedabad Municipal Corporation will introduce four specialised machines for cleaning guard railings along major roads and the central verges of BRTS and Metro corridors. The civic body plans to replace manual labour with mechanised cleaning to improve maintenance of road infrastructure and greenery. The purchase is estimated at Rs 82.8 million (mn), excluding GST. The proposal sets the base price of each machine at about Rs 20.7 million (mn) so four units total Rs 82.8 million (mn) before GST. 18 per cent GST will be applicable separately. During the warranty period each machine will operate ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement