Nuvoco Vistas Corp saw consolidated cement sales volume fall by 10 per cent YoY to 4Mt in the 3QFY23-24 (October-December 2023). The company also reported a seven per cent drop in revenue to INR24.21bn (US$291.6m).

However, EBITDA expanded by 55 per cent YoY in the 3QFY23-24 to INR4.21bn, supported by improved price realisations and a decline in power and fuel costs. EBITDA/t of INR1048 was the highest in the last 10 quarters, according to a company presentation.

Raw material costs for the company’s cement business declined YoY from INR699/t to INR624/t in the 3QFY23-24 due to a fall in slag and fly ash costs. Nuvoco continues to be better placed due to its long-term slag contract, says the company. In addition, power and fuel costs fell from INR1611/t in the 3QFY22-23 to INR1132/t in the 3QFY23-24 as the company increased its linkage mix and captive power plant and waste heat recovery system use, and benefitted from a reduction in fuel prices.

However, distribution costs increased YoY from INR1450/t to INR1495/t in the 3QFY23-24 due to the Busy Season Surcharge on rail freight from October 2023.

9MFY23-24 results
In the first nine months of FY23-24, cement volumes slipped by one per cent to 13.5Mt, resulting in revenues of INR77.99bn, up two per cent YoY. EBITDA in the 9MFY23-24 increased by 38 per cent YoY to INR11.59bn.
 
The company also commissioned a 1.2Mta expansion project at Haryana, taking total cement capacity to 25Mta. The new capacity will enable the group to better serve demand in the northern region. In addition, track laying is under way for the new railway sidings at the Sonadih and Odisha plants.