Nuvoco Vistas Corporation Limited · NSE:NUVOCO
Nuvoco Vistas — Q1 FY25 Earnings Presentation
25 slides from Nuvoco Vistas's earnings presentation, Jul 31, 2024
Slide 1: Stock exchange cover letter
Ref. No.: Sec/65/2024-25 July 31, 2024 BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, C–1, Block G, Dalal Street, Fort, Mumbai – 400 001 Bandra Kurla Complex, Bandra (East), Scrip Code: 543334 Mumbai – 400 051 Scrip ID: NUVOCO Trading Symbol: NUVOCO D
Slide 2: Investor Presentation – First quarter ended June 30, 2024
Investor Presentation First quarter ended June 30, 2024 July 31, 2024 1
Slide 3: Safe harbour clause
Safe harbour clause Statements in this ‘presentation’ describing the Company’s objectives, estimates, expectations or predictions may be “forward looking statements”. Actual results could differ materially from those expressed or implied. Important factors that could make difference to the Company’s
Slide 4: Company overview
Company overview 3
Slide 5: Nuvoco – A major player in building materials space
Nuvoco – A major player in building materials space ✓ 5th largest cement group in India ✓ Market leading brands with significant and leading player in East India market share, reputation and brand recall ✓ Installed cement capacity of ✓ Focused on retail with major revenue 25 MMT1 and 56 Ready-Mix d
Slide 6: Q1 FY25 consolidated performance at a glance
Q1 FY25 consolidated performance at a glance Value optimization and cost efficiency in focus amidst benign demand environment 4.8 MMT1 ₹ 2,636 Cr. ₹ 348 Cr. Cement sales volume Revenue EBITDA Other key highlights ✓ Trade share at 73%, with premiumisation reaching a record high of 40% of trade volume
Slide 7: Our key priorities for FY25 remain unchanged
Our key priorities for FY25 remain unchanged Strategies Revenue Profitability Process Culture ✓Improve realisation per ✓Optimization of fuel mix ✓SAP upgradation ✓Promote customer ton by focusing on (implemented in Q1 FY25) centric culture ✓Enhance operational premiumisation efficiency & cost saving
Slide 8: Economy and Industry
Economy and Industry 7
Slide 9: Macro indicators signal stable economic outlook
Macro indicators signal stable economic outlook Imported petcoke prices Coal prices stable at ₹/$ broadly stable QoQ at at ~US$ 108/t1 at the end ~₹ 3,400/t2 at the end of ~ ₹ 83 in Q1 FY25 of Q1 FY25 Q1 FY25 CPI inflation within Manufacturing PMI at tolerance range of 2-6% 58.3 in Jun’24. for the 1
Slide 10: Long term demand drivers in place
Long term demand drivers in place Under Sagarmala Programme, 217 projects ~68 lakh houses under PMAY yet to be worth ₹ 1.63 lakh Cr. are under implementation constructed including ~25 lakh houses in East1. and 360 projects worth ₹ 2.74 lakh Cr. are under Of this, 14.3 lakh houses is in West Bengal d
Slide 11: Union Budget 2024-25 sets the momentum
Union Budget 2024-25 sets the momentum Highway projects capital allocation 3 Cr. additional houses under the increased to ₹ 2.72 lakh Cr. PMAY in rural and urban areas (Bihar allocated ₹ 26,000 Cr.) Highest-ever outlay for Railways at Outlay for metro projects increased ₹ 2.4 lakh Cr. to ₹ 24,786 Cr
Slide 12: Business update
Business update 11
Slide 13: Railway siding projects nearing completion
Railway siding projects nearing completion Sonadih Odisha Projects at an advanced stage of completion, Sonadih expected by Q2 FY25 and Odisha by Q3 FY25 12
Slide 14: RMX and MBM offers additional avenues for growth
RMX and MBM offers additional avenues for growth Ready-Mix Concrete (RMX) ✓ Currently, 56 plants across India ✓ New products launched: 1. Concreto UNO Concrete, India’s first-ever hydrophobic concrete which repels water 2. Ecodure Thermal Insulated Concrete, an eco- friendly product which keeps spac
Slide 15: Sustainability and CSR
Sustainability and CSR 14
Slide 16: Sustainability – a key thrust area
Sustainability – a key thrust area Carbon emission3 (kg CO2/ton) 65,000+ tons of waste utilized as 580 Specific CO2 emissions at 513 1 fuel in plants under circular 457 kg /t of cementitious materials 457 economy initiative Global India Nuvoco Average Average FY24 Cement to clinker ratio4 (x) 1% YoY
Slide 17: Social initiatives and community engagement
Social initiatives and community engagement 140+ members trained under “Nuvo-Mason” - Extended support for education of 100+ a masonry skill development program children from tribal families Healthcare support provided to 1,000+ Pond deepening in 5 villages harvesting more pregnant women across plan
Slide 18: Key financials
Key financials 17
Slide 19: Near term demand outlook remains uncertain for the industry
Near term demand outlook remains uncertain for the industry Market Prices Cost ✓ Cement demand remained muted ✓ Pan-India prices declined by 1% ✓ Raw material costs marginally due to Union & State elections, QoQ in Q1 FY25 up, while fuel cost witnessed Q1 FY25 extreme heatwaves, labor ✓ North and Ea
Slide 20: Performance impacted amid weak macro environment
Performance impacted amid weak macro environment Volume Revenue from operations EBITDA MT ₹ Cr. ₹ Cr. 2,805 2,933 498 2,636 5.0 5.3 4.8 402 348 Q1 FY24 Q4 FY24 Q1 FY25 Q1 FY24 Q4 FY24 Q1 FY25 Q1 FY24 Q4 FY24 Q1 FY25 ✓ Macro factors, coupled with implementation of the company’s SAP upgradation progra
Slide 21: Continued focus on strong cost discipline – Q1 FY25
Continued focus on strong cost discipline – Q1 FY25 Power Powerand & fuel cost1 1 fuelcost Blended Fuel Cost (₹/ Mcal) - lowest in the last 11 quarters (₹/t) 2.64 2.74 2.28 2.31 2.05 1.91 1.94 1.74 1.67 1.63 1.57 1,219 1.40 1,086 1,076 1.21 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 FY24 Q4 FY24 Q1 F
Slide 22: Enhancing brand equity with effective marketing initiatives
Enhancing brand equity with effective marketing initiatives Launched ‘Concreto UNO’ – Campaign continues to enhance Brand awareness campaign on a premium composite cement in brand visibility through engagement importance of microfiber West Bengal with local leaders 21
Slide 23: Consolidated income statement
Consolidated income statement (₹ Cr.) Q1 FY24 Q4 FY24 Q1 FY25 Total Income 2,815 2,941 2,641 Cost of materials consumed 487 443 482 Purchase of stock in trade 11 67 56 Changes in inventories (44) 76 (13) Power and fuel 622 531 515 Freight and forwarding charges 819 805 710 Employee benefits expense
Slide 24: Summary
Summary ✓ Demand remained muted as expected due to Nimbol Cement Plant elections ✓ Timing and pace of recovery depend on the on- ground execution of infrastructure and housing programs announced by the government ✓ Headwinds in the near term primarily stem from the demand-supply imbalance and contin
Slide 25: Thank you
Thank you Nuvoco Vistas Corporation Ltd. Corporate Identity Number: L26940MH1999PLC118229 Registered and Corporate Office: Equinox Business Park, Tower 3, East Wing, 4th Floor, LBS Marg, Kurla (West), Mumbai - 400 070, Maharashtra, India; Website: www.nuvoco.com Company Contacts Madhumita Basu; Emai