Nuvoco clocks 85% dip in net profit for FY25
Nuvoco Vistas Reports 85% Profit Decline in FY25: Cement Industry Analysis
Table of Contents
Nuvoco Vistas Corporation Ltd, the cement arm of Nirma Ltd, reported a significant 85% decline in consolidated net profit for FY25, with revenues dropping 3.5% to ₹10,357 crore. The company’s performance reflects broader challenges in the cement industry while maintaining strategic growth initiatives.
Financial Performance Overview
Nuvoco Vistas Corporation Ltd, led by Karsanbhai Patel’s Nirma Ltd, faced significant financial challenges in FY25:
Key Financial Highlights
- Net profit declined by 85% to ₹22 crore (from ₹147 crore in FY24)
- Total revenue decreased by 3.5% to ₹10,357 crore
- Total expenses reduced by 2% to ₹10,350 crore
The significant profit decline reflects both market challenges and strategic investments in future growth, particularly in the context of the Vadraj Cement acquisition.
Revenue Analysis
The company’s revenue streams showed consistent performance across different segments:
Revenue Breakdown
- Cement revenue: ₹9,429 crore (3.5% decline)
- Ready-mix concrete and others: ₹1,010 crore (3.3% decline)
- Consolidated cement sales volume: 19.4 million tonnes
“Despite a subdued demand environment in the first half of FY25, the Company witnessed a strong rebound in the second half.” – Jayakumar Krishnaswamy, Managing Director
Operational Metrics
Nuvoco Vistas demonstrated strong operational performance despite financial challenges:
Key Operational Achievements
- Q4 FY25 cement sales: 5.7 million tonnes
- Full-year volume: 19.4 million tonnes
- Achieved historical quarterly highest consolidated EBITDA
The company’s focus on premiumisation and operational efficiency helped maintain market position despite challenging conditions.
Future Outlook and Strategy
Nuvoco Vistas has outlined a clear growth strategy for the coming years:
Strategic Initiatives
- Vadraj Cement acquisition to increase capacity to 31 MTPA by Q3 FY27
- Focus on market expansion and footprint growth
- Continued emphasis on premiumisation strategy
- Capitalizing on emerging market opportunities
Published on May 1, 2025
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