Nuvoco Vistas Q2 Results Review - Debt Reduction Remains A Challenge: Dolat Capital
Given visibility pangs on net debt/Ebitda reduction inconsistent profitability matrix, we remain cautious on company’s performance
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Dolat Capital Report
Nuvoco Vistas Corporation Ltd. reported volume, revenue in line, however realization, Ebitda, Ebitda/tonne, adjusted profit after tax below estimates.
Nuvoco posted up 18.9% YoY growth in revenue to Rs 24.0 billion led by up 15.0% YoY (down 5.2% QoQ) in volume to 4.4 million tonne coupled with up 3.2% YoY (down 4.8% QoQ) in realisation/tonne to Rs 4,932.
Ebitda down 41.9% YoY to Rs 3.6 billion. Net loss of Rs 1.3 billion (versus net loss Rs 258 million) due to poor operating performance.
We expect 12.2%/ 15.3%/ 196.6% revenue/ Ebitda/adjusted profit after tax compound annual growth rate over FY22-25E led by 11.9%/ 10.6%/ 7.0% volume growth and 5.7%/ 0.0%/ 0.0% cement realisation growth in FY23E/ FY24E/ FY25E.
We broadly maintain our estimates for FY23E and FY24E, however decrease our adjusted profit after tax estimates by 33.7% for FY23E. We introduce FY25E.
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