During Friday’s trading session, the shares of a major player in the building materials space and the fifth-largest cement group in India surged by nearly 2.7 percent to Rs. 353.6 on BSE, after incorporating a wholly-owned subsidiary for cement manufacturing.
With a market cap of Rs. 12,441.5 crores, at 11:26 a.m., the shares of Nuvoco Vistas Corporation Limited were trading in the green at Rs. 348.35, up by nearly 1.2 percent, compared to its previous closing price of Rs. 344.4.
What’s the news:
According to the recent regulatory filings with the stock exchanges, Nuvoco Vistas Corporation incorporated a wholly-owned subsidiary in the name of Vanya Corporation Private Limited.
The Certificate of Incorporation was received from the Ministry of Corporate Affairs on 28th November 2024. Vanya Corporation Private Limited is engaged in cement manufacturing and was incorporated to carry on the business of manufacturing cementitious products.
Financials:
Nuvoco Vistas Corporation reported a decline in revenue from operations, experiencing a year-on-year decrease of nearly 12 percent, falling from Rs. 2,579 crores in Q2 FY24 to Rs. 2,279 crores in Q2 FY25.
Similarly, during the same period, the company’s net profit declined from a profit of Rs. 2 crores to a loss of Rs. 85 crores. Further, EBITDA for Q2 FY25 decreased by 32 percent YoY to Rs. 229 crores, down from Rs. 336 crores in Q2 FY24. The company’s consolidated cement sales volume stood at 4.2 MMT in Q2 FY25.
In Q2 FY25, demand remained muted due to a challenging macro environment. Near-term challenges arise from demand-supply imbalances, while cost-control measures are expected to provide some support.
The company’s recovery will largely depend on the effective execution of infrastructure and housing programs announced by the government.
To mitigate challenges, the company has implemented strong measures, focusing on premiumization, geographic optimization, and brand strengthening. Additionally, there is a strong focus on cost optimization,
supported by the Project Bridge agenda.
Also read….
Recent Developments:
In H1 FY25, the company extended its product portfolio under RMX and MBM with offerings including Concreto UNO Concrete: India’s first-ever hydrophobic concrete which repels water, Ecodure Thermal Insulated Concrete: an eco-friendly product which keeps spaces cooler, and Zero
M Roof Shield: a revolutionary waterproofing product which reduces surface temperature.
Stock Performance:
The stock has delivered negative returns of nearly 2.2 percent in one year, while around 10.6 percent of positive returns in the last six months. So far in 2024, the shares of Nuvoco Vistas Corporation have given negative returns of about 7.7 percent.
About the company:
Nuvoco Vistas Corporation Limited, one of the leading cement players in East India, is principally engaged in the business of manufacturing and sale of Cement and building material products. It has a diversified product portfolio under Cement, Ready-Mix Concrete and Modern Building Materials.
As per the latest data available, the company has 25 MTPA Cement capacity, 13.5 MTPA Clinker capacity, 55 Ready-Mix Concrete plants, and a 50 MW Green power portfolio.
Written by Shivani Singh
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
Start Your Stock Market Journey Today!
Want to learn Stock Market trading and Investing? Make sure to check out exclusive Stock Market courses by FinGrad, the learning initiative by Trade Brains. You can enroll in FREE courses and webinars available on FinGrad today and get ahead in your trading career. Join now!!
