Nuvoco Vistas Q1 Results: Profit surges, co completes acquisition of Vadraj Cement

Nuvoco Vistas Corp Ltd on Thursday reported a sharp jump in first-quarter profit, aided by strong growth in operating income and improved margins. Consolidated net profit rose to ₹133 crore for the quarter ended June 30, from ₹2.75 crore a year earlier. Revenue rose 9% to ₹2,872.7 crore from ₹2,636 crore.Earnings before interest, tax, depreciation and amortisation (EBITDA) climbed 69% to ₹577.8 crore, while operating margin expanded to 20.11% from 13% a year ago.

The company also completed the acquisition of Vadraj Cement during the quarter through a ₹1,800 crore resolution plan under India’s bankruptcy process.

Nuvoco said the acquisition date was considered as June 21 and the transaction has been provisionally accounted for under Ind AS 103, with final purchase price allocation underway.

The cement segment remained the company’s key contributor, posting ₹2,630.35 crore in revenue. Its ready-mix and other businesses contributed ₹254.45 crore.

Separately, Nuvoco said it continues to challenge a penalty levied by India’s competition regulator in 2016 and has not made any provision against the order. The company is also contesting a West Bengal law that retrospectively revokes previously granted tax incentives.

Shares of the company ended 1.7% higher on the BSE today.