Nuvoco Vistas sees 32% drop in 2Q EBITDA on sluggish demand

India-based Nuvoco Vistas Corp posted a revenue of INR22.69bn in the 2QFY24-25 ended 30 September 2024. This represents a 11.8 per cent drop from INR25.73bn in the 2Q23-24. EBITDA reached INR22.9m, a decline of 31.8 per cent from INR33.6m in the 2QFY23-24. The company sold 4.2Mt of cement in the July-September 2024 quarter, down by 6.7 per cent from 4.5Mt in the year-ago quarter.

“The macro environment remains challenging, characterised by sluggish demand and pricing pressure,” the company said in a statement. “While the Union Budget for FY24-25 has earmarked approximately INR11.11 lakh crores for infrastructure investments, the pace of on-ground execution is yet to see significant pick-up,” according to the company. In addition, intense and prolonged condition also affected construction activities.

During the quarter Nuvoco Vistas successfully commissioned a new clinker wagon loading system at its Sonadih plant in Raipur and started to dispatch clinker via a new system. It also completed a grid integration project across its integrated units in Chhattisgarh, leading to reduced power costs.

Looking ahead, the company expects the time and pace of demand recovery to depend on the implementation of infrastructure and housing programmes announced by the government.