Jayakumar Krishnaswamy, Managing Director of the company, mentioned that demand trends have been encouraging across different regions following a brief dip at the beginning of the month. “As we enter April, aside from the first few days, demand has generally increased across all markets,” he told CNBC-TV18, noting that core east regions and parts of western and central India are experiencing robust activity.
He highlighted that states like Bihar, West Bengal, and Chhattisgarh have shown consistent demand, while markets in western Madhya Pradesh, Gujarat, and Rajasthan are also performing strongly. “Looking ahead, I foresee industry growth in the range of 7% to 9%, and I expect Nuvoco to align with that growth of about 7% to 9% during FY27,” Krishnaswamy stated.
Regarding pricing, the company has already implemented increases earlier this month, although only a portion of that rise has been absorbed thus far. The trade segment has seen price hikes of ₹10–₹15 per bag across various regions, while non-trade prices have increased by approximately ₹20. “As it stands today, we’ve noted an absorption of roughly ₹10 across all markets for the first 15 days of April,” he added, noting that additional hikes may be necessary to counter rising input costs.
The company is grappling with cost pressures ranging from ₹100 to ₹120 per tonne, primarily due to increased packaging costs, fuel prices, and other raw materials. The cost of packaging bags has surged by ₹80–₹100, with fuel contributing another ₹15–₹20, while gypsum and other inputs have added around ₹8–₹9.
Nevertheless, Krishnaswamy expressed confidence that profitability is expected to remain generally stable for the full year. “There may be some transient effects over the initial weeks until conditions stabilize. However, I anticipate numbers comparable to last year’s on an annual basis,” he said. The company aims for an EBITDA exceeding ₹900 per tonne for FY27, bolstered by operational efficiencies and a projected easing of cost pressures in the year’s second half.
On operations, the company is optimistic about revitalizing the Vadraj asset, with the Surat plant expected to be commissioned by the second quarter. Clinker transportation from Kutch to Surat will benefit from both sea and future rail connections, while a new bulk terminal near Ahmedabad will facilitate distribution throughout Gujarat.
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Krishnaswamy noted that cement production in Surat is anticipated to commence by mid-to-late Q2, with clinker production in Kutch likely starting in the latter half of the year.
He further dismissed any rumors regarding an exit from the cement sector, reaffirming the company’s dedication to expansion. “Our focus is on growing the business, and we are committed to advancing our cement operations,” he stated, adding that further capacity enhancements, especially in northern markets, will be considered following the Vadraj project’s completion.
