Better pricing, strong execution led beat

Research evidence excerpt

Better pricing, strong execution led beat

. Net costs rose by ~Rs200-250/t in

1Q, driven primarily by higher P&F, RM, packing material and freight costs, along with negative Exhibit 1 - NUVOCO: Key Financials and

assumptionsoperating leverage from weak volumes. The company mitigated part of the impact through a (Rsmn) FY24 FY25 FY26 FY27e FY28e FY29e

sharp reduction in petcoke usage (27% vs 37% QoQ) and strategic procurement initiatives. RevenueEBITDA 107,32916,237 103,56713,720 113,38318,569 127,68020,706 139,03823,486 152,19026,341

YoY % 34.1 (15.5) 35.3 11.5 13.4 12.2

PAT 1,474 218 4,079 5,199 6,199 8,410

Mgmt comments for 2Q: Management highlighted that pricing in the first two weeks of July EPSVols (mnT) 4.119 0.619 11.420 14.622 19.124 25.926

(MTPA) 25 25 26 32 35 35has held at June levels, an unusual trend given the typical sequential price declines seen VolCapacityEBITDA/TYoY (%) 0.1% 3.1% 5.2% 8.0% 9.2% 8.7% (Rs) 865 708 911 941 977 1,008

during the monsoon season. Variable costs in 2Q are expected to increase only modestly ROCEEV/EBITDA(%) (x) 5.19.9 11.53.7 6.78.9 6.87.8 7.86.6 9.15.5

by ~Rs30-40/t QoQ. The company should benefit from adequate petcoke inventory, minimal . EV/TP/E (x)(USD) 82.279 NA74 29.772 23.354 17.848 13.145

incremental fuel cost increases, moderation in packing material costs, and an improved rail Source: Company; Jefferies

mix, helping contain overall cost inflation.

Expansions: Nuvoco commissioned 2MTPA GU at the Limla Cement Plant, Surat (part of

Vadraj Cement), ahead of schedule, strengthening its presence in Western India while freeing

up capacity at its Rajasthan plants to cater to the Northern market; current cement capacity

is now at 27MTPA. Kutch project (Vadraj integrated unit) of 2.5MTPA grinding capacity