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Nuvoco Vistas Q2 Results: Cement maker posts cons net loss of Rs 130-crore

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Cement maker Nuvoco Vistas reported a Rs 130-crore consolidated loss for the July-September quarter, which has turned out to be the worst for Indian cement makers in nearly seven years.

The company had reported a loss of Rs 26 crore in the corresponding quarter last year. The loss was despite 19% growth in the consolidated topline to Rs 2,401 crore.

It was the high input costs, especially energy and logistics that pulled the company into the red. Expenses for the cement maker grew 24% year-on-year.

Subsequently, earnings before interest, tax, depreciation and amortisation (EBITDA) declined by 42% to Rs 193 crore while EBITDA margin more than halved to 8%.

“This quarter was one of the challenging periods given that the seasonally weak quarter coincided with peak energy costs,” Jayakumar Krishnaswamy, the managing director of

, said in a statement. “Nonetheless, cement demand continues to grow strongly, especially in the eastern part of India.”

The company has been working on utilising alternate fuels and using waste heat recovery systems to improve its efficiency and has achieved one of the most efficient power and fuel consumption rates in the industry, according to Krishnaswamy.

However, high fuel prices will continue to affect near-term profitability, he said.

With around 23 million tonnes of annual cement capacity, Nuvoco Vistas is the sixth-largest cement maker in India behind

, , Dalmia Cement, and Ambuja Cement.

ACC and India Cement were also in the red during the quarter, with the latter reporting its highest ever loss. Other leading cement makers too have seen their margins squeezed by high input costs.

The stock of

Ltd closed 2.7% lower on the BSE on Wednesday when the benchmark Sensex was 0.25% lower. The earnings were disclosed during trading hours.

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