Nuvoco Vistas Corporation Ltd Management Discussions

INDIAN ECONOMIC OVERVIEW

Indias economy reported a growth rate of 6.5% in FY 2024-25. This optimistic growth reflects the countrys strong domestic fundamentals and effective policy measures, which have helped it remain resilientamid global economic challenges such as tariff wars and trade tensions. Indias consumption-driven growth model, limited export dependence, and stable financial markets have provided a buffer against external shocks. This growth momentum is further fueled by ongoing reforms, rapid digital transformation, and sustained infrastructure investment, helping India maintain a steady course despite global headwinds.

(Source: https://www.pib.aov.in/PressReleasePaae.asDXRs.PRID= 2132688#:~:text=Kev%20HiahHahts%3A,7.4%25%20and%20 10.8%25%20respectivelv.)

The Union Budget 2025-26 emphasises nine key priority areas aimed at fostering inclusive and sustainable growth. These include agriculture, manufacturing, urban development, energy security, green growth, youth empowerment, financial sector development, infrastructure and investment, and reaching the last mile. Together, these priority areas are aimed at building a resilient and future-ready economy. To support these priorities, the Indian Government continues to adopt an infrastructure-led growth strategy. A capital outlay of Rs.11.21 lakhs crores has been allocated for FY 2025-26. This is slightly higher than the previous years allocation and reinforces the Governments commitment to sustained public investment.

Complementing this approach, the Asset Monetisation Plan seeks to unlock value from existing public sector assets to fund new developmental projects. A new three-year public- private partnership (PPP) pipeline has also been introduced to enhance private sector participation, improve project execution, and encourage innovation. Interest-free loans to the tune of Rs.1.5 lakhs crores have been earmarked at the state level, to incentivise infrastructure reforms and boost capital expenditure.

On the consumer front, the Union Budget has raised the income tax exemption limit, thereby increasing disposable incomes and improving consumer sentiment. All this is ultimately aimed at stimulating domestic demand.

(Source: https://www.ev.com/en in/technical/alerts-hub/2025/02/ buda et-202 5-infrastructur e-sector# :~:text=Budaet%20 2025%2D26%2C%20core%20to,aovernment%20has%20 proposed%20various%20measures.)

The services sector which grew at 7.2% in FY 2024-25, is leading Indias growth story, driven by strong demand in financial services, healthcare, hospitality, and public administration. A rebound in consumer spending, along with a steady rise in tourism, has further strengthened demand. Although the IT sector faced some challenges, it continued to grow at a moderate pace and remained a vital contributor to economic growth and job creation. The service sectors contribution is vital not only for GDP growth, but also for job creation and income generation, reinforcing its role as the backbone of the Indian economy.

(Source: https://www.thehindu.com/business/Economv/adp- arowth-slows-to-65-in-2024-25-slowest-since-the-oandemic/ artide69637518.ece)

The construction sector recorded a growth rate of 9.4% in FY 2024-25, down from 10.4% in FY 2023-24.

(Source: https://www.pib.aov.in/PressReieasePaae.aspxRs.PRID= 2132688)

The agriculture sector faced a strong recovery, growing at 4.4% in FY 2024-25, up from 2.7% in FY 2023-24. This can be attributed to a favourable monsoon, resilient rural demand, and impactful Government initiatives like the Kisan Credit Card and e-National Agriculture Market (eNAM). A substantial allocation of Rs.1.52 trillion in the Union Budget has been directed towards improving credit access, promoting digital markets, and advancing sustainability efforts. Key areas of emphasis include boosting productivity, supporting farmer welfare, and strengthening allied sectors such as horticulture and livestock. This growth trajectory is in line with historical averages, suggesting a phase of economic stabilisation rather than a period of rapid transformational growth.

(Source: httos://www.oib.aov.in/PressReleasePaae.asoxRs.PRID= 2132688#:~:text=Kev%20Hiahliahts%3A,7.4%25%20and%20 10.8%25%20respectivelv.)

Conversely, the manufacturing sector grew at 4.5% in FY 2024-25, a moderation from the 12.3% growth recorded in FY 2023-24. Similarly, the Index of Industrial Production (IIP) eased to 4.0% growth in FY 2024-25 from 5.9% in the previous year, reflecting a broader slowdown across key manufacturing segments. This moderation is driven not only by weaker global demand but also domestic factors, including slower growth in output, new orders, and inventory accumulation. External pressures from assertive industrial policies by global trade partners, coupled with seasonal challenges, such as disruptions caused by an above-average monsoon, have also dampened momentum. Although the monsoon benefited agricultural output, it adversely affected sectors like mining and construction, indirectly weighing on manufacturing performance. Nevertheless, the manufacturing sector remains resilient, supported by Indias macroeconomic stability, sound fiscal management, and sustained infrastructure investment.

(Source: https://www.thehindu.com/business/Economv/adp- arowth-slows-to-65-in-2024-25-slowest-since-the-Dandemic/ artide69637518.ece

https://www.business-standard.com/industrv/news/india- s-iip-arowth-recovers-to-3-in-march-fv25-output-at-4-vear- low-125042801091 l.html)

Indias labour market is also showing signs of challenges. The unemployment rate among individuals aged 15 years and above fell marginally to 4.9% in 2024, from 5% in 2023, according to the Periodic Labour Force Survey (PLFS). The overall decline in unemployment was primarily due to a slight reduction in rural unemployment, which fell from 4.3% to 4.2%. Both rural men and women experienced marginal improvements. Urban unemployment remained steady at 6.7%, with male unemployment increasing slightly from 6% to 6.1%, while female unemployment dropped notably from 8.9% to 8.2%. At the national level, the Labour Force Participation Rate (LFPR), the proportion of people either employed or actively seeking work, remained largely stable at 56.2%.

(Source: https://timesofindia.indiatimes.com/business/india- bu sin ess/indias-un employment-rat e-dips-sliaht Iv-to-4-9- in-2024-mixed-trend s-seen-aero ss-rea ions-and-genders/ articleshow/l20129382.cms)

India has been making significant strides in boosting global confidence in its economic prospects. As per the latest figures available on May 23, 2025, Indias foreign exchange reserves reached USD 692.721 billion . These reserves provide a sufficient import cover, thereby reflecting a strong external buffer. The growth in reserves was driven by active interventions by the RBI and valuation gains on foreign assets. Globally, the US implemented protectionist measures, including tariff impositions, which triggered volatility in currency markets and led to a decline in the US dollar.

(Source: https://www.business-standard.com/economv/news/india -s-forex-reserves-rise-6-99-billion-to-692-72-billion- rbi-125053001198 l.html https://www.thehindu.com/business/Economv/indias-forex-reserves-rise-to-6763-billion/article69430292.ece)

On the inflation front, the Consumer Price Index (CPI) reached 4.9% in FY 2024-25, the lowest level since FY 2018-19. This milestone highlights the effectiveness of the Reserve Bank of Indias pro-growth monetary policy in balancing economic growth with price stability. Meanwhile, the Wholesale Price Index (WPI) based inflation rate for the fiscal year 2024-25 is around 2.25%.

(Source: https://www.pib.gov.in/PressReleasePage.aspxRs.PRID= 2136562&utm)

INDUSTRY OVERVIEW Cement Industry

As of March 2025, India is the worlds second-largest cement producer, accounting for over 8% of the global installed capacity. With the countrys infrastructure and construction sectors poised for robust growth, the cement industry is set to gain significant traction. Supportive Government policies, including tax incentives and FDI-friendly reforms, are enhancing the sectors investment appeal. Additionally, the countrys rich limestone reserves and strategically located production hubs strengthen both domestic operations and export competitiveness. Regional development initiatives are driving employment generation and fostering critical infrastructure linkages, further amplifying the sectors momentum.

(Source: https://accassociation.ora/news/acca-india-and-teri-launch-decarbonisation-roadmap -for-th e-indian-cement-industrv-net-zero-c0%E2%82%82-bv-2070/#:~:text=As%20 the%20worlds%20second%2Dlaraest,lndias%20total%20 CQ2%20emissions.)

As per estimates, the Indian cement industry has a volume capacity of around 700 MMTPA by end of FY 2024-25.

(Source: https://www.cmaindia.orgA

The Indian cement industry witnessed muted demand in 2025, with growth easing to 4.5-5.5%, compared to the robust expansion seen over the previous three years. This moderation came off a high base, reflecting a sharp drop in momentum. Demand remained tepid throughout most oftheyear, especially in the first half of FY 2024-25, primarily due to sluggish construction activity in key segments like housing and infrastructure. Factors such as election-related disruptions, a prolonged heatwave, and heavy monsoon rains further dampened demand. Capacity utilisation across the industry stayed moderate as supply outpaced consumption. Intense competition among players and oversupply led to a sharp decline in cement prices, which fell to a four-year low. Rising input costs, particularly for fuel and raw materials, squeezed margins, despite some companies implementing efficiency measures.

(Source: https://economictimes.indiatimes.com/industrv/indl-

aoods/svs/cement/cement-industrv-looks-for-better-arowth- in-2025/articleshow/l 1665243 l.cms)

At the same time, the cement industry is undergoing a significant phase of strategic consolidation. Major players are actively pursuing acquisitions and divestitures to strengthen their market presence and improve operational efficiency. This wave of mergers and acquisitions is primarily driven by the pursuit of economies of scale, the need to counter escalating input and energy costs, and the strategic imperative to protector grow regional market share in a highly fragmented, geography- sensitive sector.

Larger companies are capitalising on these transactions to streamline operations, eliminate inefficiencies, and invest in advanced technologies, leading to improved productivity and stronger profitability. Simultaneously, capacity expansions are being strategically aligned with actual demand growth. This approach ensures higher plant utilisation and supports price stability across markets. This disciplined expansion strategy helps avoid overcapacity and potential price wars, creating a more resilient and predictable industry landscape. Furthermore, consolidation is enabling players to extend their geographic footprint, diversify product offerings, and channel investments into sustainability initiatives. All these factors are becoming increasingly vital amid evolving regulations and changing consumer expectations.

On the cost front, companies are working to improve long-term cost efficiency by streamlining logistics, optimising their fuel mix, and increasing their use of renewable energy. Although imported pet coke prices have fluctuated, overall fuel costs are expected to stay under control, supporting profitability.

(Source: https://economictimes.indiatimes.com/industrv/indl-

aoods/svs/cement/cement-industrv-looks-for-better-arowth- in-2025/articleshow/ll 6652431.cmsRs.from=mdr)

GROWTH DRIVERS Economic Growth

Indias vision of becoming a USD 5 trillion economy by FY 2028-29 is deeply anchored in large-scale infrastructure development, a key enabler that directly fuels cement demand.

Expansive transport projects aimed at improving connectivity are not only enhancing logistics efficiency but also catalysing broader economic activity. This infrastructure-led growth model positions the cement industry as a key contributor to the nations economic goals, with rising demand anticipated from highways, rail networks, ports, and urban infrastructure projects.

(Source: httDs://www.hindustantimes.com/india-news/finance- ministrv-charts-path-to-5-trillion-bv-fv29-Rs. 0 Rs. 736535 Rs. 06237. html#:~:text=%245%20trillion%20economv.-,ln%20its%20 note%2C%20the%20finance%20ministrv%20said%20lndia%20 was%20a,be%20achieved%20bv%202028%2D29.)

Rapid Urbanisation

It is projected that by 2030, about 40% of Indias population will live in urban areas, driving substantial growth in the nations GDP. This rapid urbanisation presents a significant growth opportunity for the cement industry, as the demand for infrastructure development, housing, and commercial projects is expected to surge. The growing need for efficient urban planning and construction will further accelerate cement consumption, positioning the industry as a crucial driver of economic development in the years ahead.

(Source: https://www.investindia.aov.in/bloas/indias-push-infrastructure-development)

Housing Sector

A major driver of growth for Indias cement industry is the strong demand from the housing sector, which accounts for nearly 60% of the countrys total cement consumption. This substantial share highlights housing as the dominant sector for cement usage. Additionally, the Government of Indias flagship initiative, the Pradhan Mantri Awas Yojana (PMAY), has further boosted this trend. Currently, 6.54 crores people, representing 1.39 crores households, are residing in slums across the country. As of March 2025, 90.60 lakhs homes have been built or handed over to slum beneficiaries under the Pradhan Mantri Awas Yojana - Urban (PMAY-U). With its focus on providing affordable housing for economically weaker sections and low-income groups, PMAY continues to drive significant cement demand in both urban and rural regions.

(Source: https://ddnews.aov.in/en/over-6-54-crore-peopie-iivina-in-slums-nationwide-90-60-lakh-houses-delivered-under-pmav- u/#:~:text=Menu,houses%20delivered%20under%20PMAY%2DU) Infrastructure Development

A key catalyst for the cement industrys growth is the Indian Governments strong emphasis on infrastructure development as a cornerstone of economic expansion. With a sharp focus on enhancing connectivity and streamlining logistics, the Indian Government has committed to a significant boost in capital expenditure Rs.11.21 lakhs crores as outlined in Union Budget 2025-26. This ambitious investment strategy is fueled not just by direct public spending but also by efforts to attract significant private sector participation. Such a co-ordinated infrastructure push is set to generate sustained demand for cement across sectors like transportation, urban development, and industrial corridors, reinforcing the industrys long-term growth prospects. (Source: httos://oib.aov.in/FactsheetDetails.asoxRs.ld= 149113#:~ :text=lndia%2C%20the%20worlds%20fifth%2Dlaraest,lakh%20 crore%20in%202023%2D24.&text=The%20PM%20Gati%20 Shakti%20National,Shakti%20principles%20has%20been%20 achieved.)

Rural Development Push

In the Union Budget 2025-26, the Ministry of Rural Development has been allocated Rs.1.88 lakhs crores. Focused on rural infrastructure and livelihoods, initiatives like the Rural Prosperity and Resilience Program are set to boost construction activities. As rural areas see growth in roads, housing, and public infrastructure, the demand for cement is expected to surge, positioning the cement industry as a key growth driver in the coming years.

(Source: https://pib.aov.in/PressReieaselframePaae.aspxRs.PRID= 2100410#:~:text=Mahatma%20Gandhi%20Nationai%20 Rural%20Emplovment,25%20at%20Budaet%20estimate%20 stage.)

Industrial and Commercial Real Estate Construction

The rapid growth in industrial and commercial real estate development across India is emerging as a significant driver of cement demand. During FY 2025-26, commercial real estate supply is expected to grow by 5% year-on-year, supported by robust expansion in manufacturing, logistics, warehousing, data centres, and organised retail. These sectors require high- volume, durable construction-placing cement at the heart of their infrastructure needs. This momentum is further reinforced by Government-led initiatives such as Make in India, the development of industrial corridors, and the rollout of smart cities, all of which are catalysing large-scale infrastructure investments.

(Source: https://reaitv.economictimes.indiatimes.com/news/

commerciai/indian-commerciai-reai-estate-to-arow-5-6-vear-on- vear-in-fv26-ind-ra/i 17636035)

Industry Consolidation

Consolidation among major cement players is emerging as a key growth driver by bringing greater pricing discipline and operational efficiency to the industry. Mergers and acquisitions are enabling economies of scale, optimised logistics, and stronger investments in technology and sustainability. Over the past ten years since May 2024, there have been 15 mergers and acquisitions in the sector. The average acquisition costs per metric tonne is notably lower than the cost of setting up new plants, resulting in substantial capex savings and improved operational efficiency.

(Source: https://www.businessworid.in/articie/cement-industrv-in- india-consoiidatina-market-shares-of-top-companies-arowina- icra-521654)

Sustainability Initiatives

Rising environmental awareness and stricter regulatory frameworks are emerging as powerful growth drivers for the cement industry, serving as catalysts for innovation rather than mere constraints. These forces are accelerating innovation, pushing companies to adopt cleaner, more energy-efficient technologies and embrace circular economy practices.The surge in demand for green cement, driven by sustainable construction trends is unlocking new premium market segments and creating room for higher value realisation. Green cement can reduce the carbon footprint of buildings by up to 40%. It is increasingly preferred due to supportive policy incentives, growing ESG investment flows, and its ability to deliver premium value across both residential and commercial segments. Moreover, companies that proactively align with or exceed environmental norms are gaining a competitive edge. They are also attracting increased interest from ESG-focused investors and benefiting from access to policy-driven incentives.

(Source: https://www.fortunebusinessinsiahts.com/areen-cement- market-107251)

Government Initiatives

The cement industry stands to gain significantly from the Indian Governments ongoing thrust on infrastructure development. Strong emphasis on building roads, highways, smart cities, affordable housing, and expanding rail and metro networks, is expected to increase cement consumption. These factors also pave the way for sustained long-term growth in the industry by enabling a robust ecosystem for infrastructure investment.

• The Sagarmala Programme, aimed at promoting port-led development, has identified a total of 839 projects with an estimated investment of Rs.5.79 lakhs crores. By March 2025, 272 of these have been successfully completed, with an investment of ~ Rs.1.41 lakhs crores.

(Source: httDs://Dib.aov.in/PressReleasePaae aspxRs.PRID =2113023>

• As of February 2024,6,753 out of 7,991 projects have been completed under the Smart Cities Mission, demonstrating significant progress.

(Source: https://www.investindia.aov.in/bloas/indias-push- infrastructure-deveiopment)

• Indias National Highway (NH) network has seen remarkable expansion, increasing from 65,569 km in 2004 to 91,287 km by 2014. By 2024, it had further extended to 1,46,145 km, reflecting sustained infrastructure growth.

(Source: httDs://Dib.aov.in/PressReieasePaae.aspxRs.PRID= 2098788#:~:text=The%20Government%20of%20lndia%20 has,Proaramme%20for%20the%20North%2DEast)

• Indias railway sector is making significant strides with landmark projects such as the Mumbai-Ahmedabad Speed Rail Corridor, the iconic Chenab Bridge, and the introduction of 35 Vande Bharat Express trains. The sector is also working towards an ambitious goal of achieving Net Zero Carbon emissions by 2030.

(Source: https://www.investindia.aov.in/bioas/indias-push- infrastructure-deveiopment)

Outlook

The cement industry is set fora strong rebound and the outlook looks significantly more promising. The industrys annual growth rate is expected to increase to ~7% in FY 2025-26, up from the projected 4-5% for FY 2024-25. The Union Budgets enhanced allocations for roads, housing, and urban development, combined with state-level capex initiatives, are creating a strong demand pipeline for cement. Government spending on infrastructure remains a key catalyst. This infrastructure push is expected to drive consistent volume growth across both urban and rural markets.

(Source: https://www.crisii.com/content/crisiicom/en/home/ newsroom/oress-releases/2025/04/cement-demand-set-to-rise- 7oercent-this-fiscal-orices-bv-2-4oercent.html#:~:text=The%20 c e m e n t% 2 0 s e c to r% 2 0 i s% 2 0 e xo e c t e d, fo r% 2 0 c o r e% 2 0 infrastructure%20ministries%20and)

SECTORIAL SWOT ANALYSIS Strengths

• Foundation of Infrastructure Development: Cement is an indispensable material in the construction sector. It serves as the backbone of infrastructure projects, including roads, bridges, buildings, and urban development. Its indispensable role ensures steady demand across both public and private sectors.

• Operational Efficiency through Energy Management:

The Indian cement industry is recognised for its high energy efficiency standards. By adopting advanced technologies and sustainable practices, manufacturers have been able to significantly lower their energy consumption, leading to reduced operational costs and smaller carbon footprint.

• Favourable Government Policies: The industry benefits from proactive Government support, including infrastructure spending, tax incentives, and policy reforms aimed at boosting manufacturing. This plays a key role in accelerating the growth and modernisation of the sector.

Weaknesses

• High Logistics Costs: Due to its heavy weight and dense composition, cement incurs substantial transportation costs, particularly over long distances. These logistical expenses can significantly erode profit margins, especially in geographically dispersed markets.

• Heavy Reliance on the Construction Sector: The performance of the cement industry is closely tied to the health of the construction and infrastructure sectors. Any slowdown in construction activity directly impacts demand and revenue.

• Energy-Intensive Operations: Cement manufacturing is inherently energy intensive. High energy consumption not only escalates operational costs butalso increases exposure to fuel price volatility and environmental scrutiny.

• Minimal Product Differentiation: Cement, being

a commodity, has limited opportunities for product differentiation. This creates challenges for companies in building brand loyalty or commanding premium prices, often resulting in competition driven by pricing strategies.

Opportunities

• Rising Per Capita Income and Urbanisation: With the estimated GDP growth rate of 6.4% for FY 2024-25, rising disposable incomes are driving an uptick in both residential and commercial construction activity. This growing demand for housing and infrastructure directly fuels cement consumption, particularly in urban and semi- urban areas.

(Source: https://pib.aov.in/PressReieaselframePaae.aspx1 PRID=2098357)

• Adoption of Advanced Technologies: Embracing innovations in production processes such as waste heat recovery, automation, and alternative fuels, Al and robotics-can enhance operational efficiency, reduce carbon footprints, and align with evolving sustainability norms. Technological advancement also offers a competitive edge in both domestic and global markets.

Threats

• Stringent Environmental Regulations: With rising concerns over carbon emissions and environmental impact, the industry faces increasing regulatory pressures. Compliance with these norms often requires significant investment in cleaner technologies and sustainable practices.

• Economic Volatility: A downturn in the economy can severely impact construction activities, leading to reduced demand for cement. This cyclicality makes the industry vulnerable to macroeconomic fluctuations.

• Global Competitive Pressure: Emerging competition from countries with lower production and export costs, such as Egypt and Turkey, poses a threat to Indian cement manufacturers, especially in international markets.

• Oil Price Fluctuations: The volatility of global oil prices can directly influence transportation and production costs, thereby affecting profitability and cost predictability.

COMPANY OVERVIEW

Nuvoco (the Company), comprising both Nuvoco Vistas Corporation Limited and NU Vista Limited (NVL), is a prominent leader in Indias building materials industry. Guided by its vision of Building a Safer, Smarter, and Sustainable World, Nuvoco has grown significantly since its inception in 2014 with the establishment of a greenfield cement plant in Nimbol, Rajasthan. Over the years, the Company has strengthened its presence through strategic acquisitions, including Lafarge India Limited in 2016, NU Vista Limited in 2020, and proposed acquisition Vadraj Cement Limited in 2025. These acquisitions have established Nuvoco as the fifth-largest cement group fora long term in India by capacity, particularly strengthening its position in the Eastern region while expanding its presence in the North and West.

The proposed acquisition of Vadraj Cement Limited marks a key milestone in Nuvocos expansion strategy. This transaction added 6 MMTPA of cement capacity at Surat and 3.5 MMTPA of clinker capacity at Kutch, further strengthening Nuvocos presence in the Western region. The deal also included access to substantial limestone reserves and essential infrastructure, including a captive jetty, which enhances logistics efficiency and reduce operational costs. These assets create synergies with Nuvocos Nimbol and Chittor Plants, optimising logistics and streamlining integration, thereby improving overall operational competitiveness. Additionally, the proposed acquisition frees up capacity for the Northern market and ensures proximity to critical raw materials, such as lignite reserves in Kutch, strengthening the resilience of the supply chain.

Nuvoco now boasts a robust cement manufacturing capacity of 25 MMTPA and on its way to be ~31 MMTPA by Q3 FY 2026- 27. With these acquisitions the Company has demonstrated growth in a short span of over a decade. With 11 (eleven) cement plants, including 5 (five) integrated units and 6 (six) grinding units, and 58 (fifty-eight) Ready-Mix Concrete (RMX) plants across regions such as Rajasthan, Haryana, and West Bengal, Nuvocos operations span a vast geographical footprint. All integrated plants- Arasmeta, Risda and Sonadih Cement Plants (Chhattisgarh), Chittor and Nimbol Cement Plants (Rajasthan) and a Grinding Unit - Jojobera Cement Plant (Jharkhand) - are equipped with state-of-the-art waste heat recovery systems (WHRS) with a combined capacity of 49 MW. In addition, Nuvoco operates a captive power plant (CPP) with a capacity of 150 MW and a solar power plant (SPP) generating 5.5 MWp. Additionally, Nuvoco maintains ~80 offices, including the Construction Development and Innovation Centre (CDIC), reinforcing its commitment to customer responsiveness and superior service. The Companys business strategy revolves around its diversified portfolio across Cement, RMX, and Modern Building Materials (MBM). Within the Cement segment, the Company offers a

diverse range of trusted brands, including Nuvoco Concreto, Nuvoco Duraguard, Nuvoco Double Bull, Nuvoco PSC, Nirmax, and Nuvoco Infracem. These brands address a diverse range of customer requirements, offering products such as Ordinary Portland Cement (OPC), Portland Slag Cement (PSC), Portland Pozzolana Cement (PPC), and Portland Composite Cement (PCC). These products meet the demands of both individual home builders and institutional clients, leveraging high-quality raw materials to consistently deliver superior cement solutions. Consequently, Nuvoco maintains its top-tier regulatory rating.

Among the distinct products in Nuvocos cement portfolio are Nuvoco Concreto Uno, and Nuvoco Duraguard Microfiber- Cement with added Microfiber. Nuvoco Concreto Unos unique water-repelling properties make it highly effective in protecting structures against water ingress, dampness, and efflorescence. This enhances their durability and longevity. Nuvoco Duraguard Microfiber, featuring Indias first patented fiber reinforce technology, is an innovative solution that reduces shrinkage cracks, offering high durability. This cement is packaged in laminated polypropylene bags, helps preserve freshness. It represents a leap forward in the development of enduring and reliable construction materials.

In FY 2024-25, Nuvoco made significant strides in enhancing its logistics infrastructure to support the efficient and reliable movement of cement across its operations. At the Sonadih Plant, the newly commissioned clinker wagon loading system is set to improve dispatch efficiency, reduce turnaround time, and optimise outbound logistics for cement. Additionally, the railway siding project at the Odisha facility is progressing as planned, with commissioning anticipated soon. Once completed, this project will strengthen multi-modal transport connectivity, further boosting a more robust and streamlined supply chain network for Nuvocos cement operations.

Nuvocos RMX portfolio focuses on innovation and sustainability, offering a diverse range of solutions tailored to meet evolving construction needs. Concreto delivers high-performance strength and durability, while Artiste brings aesthetic versatility to architectural and decorative applications. InstaMix offers a ready- to-use bagged concrete solution that enhances site efficiency, and X-Con, available in grades from M20 to M60, caters to a wide array of structural requirements. The portfolio also includes Ecodure, a special green concrete that supports environmentally conscious building practices. Adding further depth are InstaMix Superior Column Concrete, formulated to enable early deshuttering of cast columns and accelerate construction timelines, and Artiste Industrial Craft Flooring Concrete, which redefines industrial flooring with superior durability and finish. These serve applications across manufacturing facilities, warehouses, distribution centres, parking areas, podiums, cold storage units, data centres, exhibition venues, and office spaces.

In FY 2024-25, Nuvoco further strengthened its RMX portfolio with the launch of 2 (two) innovative products that address emerging needs in the construction industry. Concreto UNO - Indias first-ever hydrophobic concrete is a breakthrough product that actively repels water, enhancing the durability and lifespan of structures exposed to moisture and extreme weather conditions. Positioned as a premium concrete offering, Concreto UNO is already gaining strong traction across key markets, underlining its relevance and performance benefits.The next in launch was Ecodure Thermal Insulated Concrete, which builds on Nuvocos sustainability commitment by offering a smart. eco-friendly solution that improves thermal insulation. It helps maintain cooler indoor temperatures, making it ideal for both residential and commercial applications in hot climates.

Nuvocos RMX products have played a vital role in shaping some of Indias most iconic infrastructure projects. These include the infrastructure related to Puri Railway Station-Bhubaneswar, O.P. Jindal Global University-Sonipat, Miraj Stadium-Udaipur, Ginger, By Lakend Hotel Group-Udaipur, Nestle R&D Centre-Manesar- Gurgaon.The DoubleTree Hotel by Hilton- Ahmedabad, Imperial Square- Ahmedabad. By delivering performance-driven and sustainable concrete solutions, Nuvoco continues to contribute meaningfully to the nations infrastructure journey.

Nuvocos Modern Building Materials (MBM) business stands out as a key differentiator for the Company, delivering innovative, high-performance solutions under the Zero M brand. This dynamic portfolio includes a diverse range of advanced products such as Construction Chemicals, Multi-purpose Bonding and Waterproofing Agents, Wall Putty, complete range of tiling solution i.e. Tile Adhesive,Tile Grout,Tile Cleaner, Ready-Mix Dry Plaster, and Cover Blocks.

In FY 2024-25, the MBM segment emerged as a vibrant growth driver, backed by continuous innovation and an expanding market footprint. Operating undertheZeroM brand, the business introduced an exciting range of new-age products including Tile Adhesive T5, Tile Glitter, and Tile Bonder-engineered to elevate both performance and finish in tiling applications.

Throughout the year, sales of tile adhesives, construction chemicals, and cover blocks continued to rise, highlighting the growing trust and relevance of the Company products. The noncement channel also gained strong traction, further widening the brands reach. The highlight of the year was the launch of Zero M Roof Shield, a next-generation waterproofing solution that not only ensures superior protection but also helps lower surface temperature.

This makes it a smart and sustainable choice for modern construction. Designed to meet a wide array of construction needs, these offerings not only enhance the quality but also drive efficiencies in time, cost, and resource utilisation. Sustainability Commitment

At Nuvoco, sustainability is deeply embedded in its core values. The Company is actively working to minimise plastic usage by introducing innovative packaging solutions, including recyclable bag formats in select markets. Every product development effort is designed to support Nuvocos goal of reducing carbon emissions, with each new offering contributing to the Companys low-carbon transition objectives.

Nuvoco is committed to driving sustainable growth, innovation, and operational excellence. In alignment with its long-term strategic objectives to enhance key business parameters, including product innovation, sustainability, and market leadership. Nuvoco is in the process of laying out a road map for next five years which will bring about Digital Innovation to reduce carbon footprint, invest in innovation which will bring out greener products in the portfolio across all businesses, increase in renewable energy footprint, focus on increasing AFR usage through partnering with Urban-Rural Waste Disposal Agencies and thereby demonstrating commitment to offset the Plastic Waste Liability.

Guided by the expertise of the Innovation Council and supported by cross-functional collaboration, Nuvoco is well-positioned to successfully meet these objectivesand further its transformation into a more sustainable and innovative Organisation.

OPERATIONAL PERFORMANCE

Nuvocos focus on operational efficiency is reflected in its continuous efforts to optimise processes, integrate sustainable practices, and leverage digital and technological innovations across its manufacturing, quality, and logistics functions. A major driver of this transformation has been the strategic use of Al, data analytics, and digitalisation to improve decision-making, resource utilisation, and service reliability.

The Company has integrated Al-driven models in its manufacturing and quality control processes, utilising advanced technologies for predictive strength, quality forecasting, and input optimisation. Users benefit from a seamless experience, with single sign-on access to multiple applications. Moreover, the unified SAP system has been reinforced with advanced cybersecurity measures, effectively mitigating the risk of unauthorised access, data breaches, and insider threats. These innovations have significantly contributed to improving the consistency and performance across both the Cement and RMX segments.

A critical area of operational enhancement has been the Companys fuel and energy mix. Nuvoco has made concerted efforts to improve the effectiveness of alternative fuel resources (AFR). In FY 2024-25, the Company achieved an AFR of 9.6%, reflecting its continued focus on enhancing sustainability in manufacturing. A significant shift towards refuse-derived fuel (RDF) has reduced the Companys reliance on fossil fuels, particularly in clinker and cement production. This is expected to contribute meaningfully toward Nuvocos carbon reduction goals. In line with this, biomass usage was also scaled up, furthering the Companys renewable energy transition and expanding its green energy portfolio.

In Scope 1 emissions, a significant milestone was the transition from imported coal to domestically sourced coal, selected through comprehensive research to ensure optimal energy efficiency. Solar energy remains integral to Nuvocos sustainability strategy, with a major 60 MW solar project planned for implementation in FY 2026-27. Additionally, the expansion of WHRS has contributed to increased green energy generation, further enhancing energy efficiency across operations.

Nuvoco completed 132 KV Grid Integration Project, consolidating energy sourcing for Arasmeta,Sonadih,and Risda Cement Plants, reducing fixed energy costs and improving grid resilience.

Operational efficiency was equally reflected in the Companys logistics and supply chain transformation. FY 2024-25 marked a major shift, with logistics operations fully digitalised. Realtime dashboards for vehicle tracking, system-based approvals, and automated MIS reporting streamlined operations, reduced manual intervention, and enhanced transparency.

Nuvoco adopted a hub-and-spoke distribution model to effectively manage rising transportation costs, reduce transit times, and meet growing customer expectations for reliable deliveries. By centralising inventory at strategically located hubs, the Company consolidates supplies before efficiently redistributing them to spoke locations. This model enhances the efficiency of secondary freight operations, improves inventory visibility, and aligns stock levels with regional demand using advanced data analytics. The shift enables greater scalability and operational flexibility, empowering Nuvoco to respond swiftly to market dynamics while ensuring timely deliveries.

Within manufacturing and dispatch, efforts to meet dispatch SLAs improved through better coordination between planning, production, and logistics teams. This led to timely order fulfilment and reduced dwell times for transport vehicles. Cost efficiency improved through strategic initiatives such as vendor benchmarking to ensure competitive pricing, route rationalisation to reduce excess mileage, and in-depth freight cost analysis to identify and eliminate cost leakages. All this contributed to better spend management without compromising service levels.

On the environmental front, water and waste management also saw operational improvements. The Companys water positivity ratio has improved to 1.95x during FY 2024-25 from 1.8x in FY 2023-24. This demonstrates the ability to replenish significantly more water than consume, even as the Companys operations expand. Nuvoco has significantly enhanced its customer service by integrating advanced digital tools and optimising operational workflows. A key milestone in this transformation is the launch of the Nuvo Setu & Nuvo Partner App, developed under the Project DEN initiative. Nuvo Setu is a user-friendly digital platform which empowers customers with real-time order tracking, comprehensive product information, and credit management features. This ensures greater transparency and convenience throughout the ordering process.

Complementing with this is the integration of SAP-powered dashboards, which provide real-time insights into daily orders and inventory levels.This visibility enables seamless coordination among sales, production, and logistics teams, allowing them to proactively address challenges, particularly during periods of fluctuating demand. Additionally, improvements in internal operations, such as the automation of batching processes in Ready-Mix Concrete production, have enhanced product reliability and consistency.

Looking ahead, Nuvocos strategic priorities-product premiumisation, geo optimisation by expanding as well as strengthening its presence in key markets, and brand building- are aimed at enhancing realisation per tonne and strengthening market competitiveness. Supporting these goals, the Company implemented Project Bridge 1.0 which helped in achieving a ~Rs.30/tonne reduction in operating costs through improved efficiency and resource optimisation. Building on its success, Project Bridge 2.0 was launched to drive further savings of of Rs.56/tonne by focusing on material cost efficiency, optimising power and fuel consumption, and leveraging digital tools.

FINANCIAL PERFORMANCE

Description	Standalone		Consolidated
	FY 2024-25	FY 2023-24	FY 2024-25	FY 2023-24
Revenue from Operations	8,724.66	8,939.23	10,356.67	10,732.89
Other Income	16.37	119.97	19.43	33.49
Total Revenue	8,741.03	9,059.20	10,376.10	10,766.38
Expenditure
Cost of Materials Consumed	1,394.38	1,633.26	1,748.28	1,741.39
Purchases of Stock in Trade	1,161.88	1,102.79	260.59	145.62
Changes in Inventory	60.54	45.65	52.90	66.69
Power and Fuel	1,497.75	1,571.08	1,969.99	2,140.19
Freight and Forwarding Charges	1,901.49	1,853.65	2,793.68	2,928.50
Employee Benefit Expenses	556.91	556.96	675.79	681.77
Other Expenses	1,150.52	1,076.17	1,483.44	1,405.02
Total Expenditure	7,723.47	7,839.56	8,984.67	9,109.18
EBITDA	1,017.56	1,219.64	1,391.43	1,657.20
EBITDA Margin (%)	12%	14%	13%	15%
Depreciation	620.67	643.76	868.51	918.64
Finance Costs	354.73	367.98	496.41	532.63
Profit before Tax (PBT)
Income Tax	1.68	54.87	4.67	58.56
Profit after Tax (PAT)	40.48	153.03	21.84	147.37

Revenue from Operations

The revenue from operations for FY 2024-25 decreased to Rs.10,356.67 crores from Rs.10,732.89 crores in the previous year.

Sales Volume

The volume of cement sold stood at 19,411 KT in FY 2024-25 compared to 18,773 KT in FY 2023-24. In FY 2024-25, the average selling price (net of taxes) decreased to Rs.4,852/T from Rs.5,197/T in FY 2023-24. Also, RMX volume decreased to 2,138 Km³ in FY 2024-25 from 2,350 Km³ in FY 2023-24.

Raw Material Cost

Nuvocos raw material costs form a substantial part of operating costs. Raw material costs for cement operations decreased by 1 % from FY 2023-24.

Power and Fuel

In FY 2024-25, the Companys power and fuel expenses for cement operations decreased by 11%, to Rs.1,032/T in FY 2024-25 from Rs.1,135/T in FY 2023-24 primarily on account of reduction in coal and pet coke prices.

Freight and Forwarding

Nuvocos cement operations freight and forwarding costs decreased by 8% to Rs.1,390/T in FY 2024-25 from Rs.1,514/T in FY 2023-24.

Employee Benefit Expenses

Nuvoco places a strong emphasis on its people, recognising them as a core driver of its success. The Company is committed to fostering employee growth through structured training programmes, retention initiatives, and a supportive work environment. Annual increments are aligned with industry standards, reflecting a consistent approach to rewarding performance and potential. By offering competitive compensation and clear career progression opportunities, Nuvoco aims to enhance workforce efficiency, increase productivity, and strengthen organisational performance.

Finance Costs

During the year under review, the Companys finance costs reduced substantially from Rs.532.63 crores in FY 2023-24 to Rs.496.41 crores in FY 2024-25 which is mainly due to redemption of non-convertible debentures.

Cash Flow

The net cash inflow during the year under review stood at Rs.78.83 crores as compared to the net cash outflow of Rs.94.91 crores in previous year. The cash flow from operating activities was lower and stood at Rs.1,328.52 crores as compared to Rs.1,592.54 crores in the previous year. Net cash outflow from investing activities during the year under review stood at Rs.337.12 crores as compared to Rs.573.36 crores in FY 2023-24. This gap was mainly due to lower capital expenditure during the year. Lastly, net cash outflow from financing activities stood at Rs.912.57 crores as compared to cash outflow of Rs.1,114.09 crores in the previous year. During the year under review, Nuvoco spent Rs.450 crores in interest and other financial costs as compared to Rs.498.54 crores in the previous year.

KEY RATIOS

Particulars	FY 2024-25	FY 2023-24
Debtors Turnover Ratio	12.90	14.12
InventoryTurnover Ratio	11.91	10.56
Interest Service Coverage Ratio	3.02	3.23
Current Ratio	0.58	0.57
Debt Equity Ratio	0.42	0.46
Operating Margin (%)	13.49	15.41
Net Profit Margin (%)	0.21	1.40
Return on Equity (%)	0.24	1.65
Return on Capital Employed (ROCE) (%)	4.05	5.49
Earnings per Share	0.61	4.13

Performance of Unlisted Material Wholly Owned Subsidiary, NU Vista Limited (NVL)

NVL, wholly owned by Nuvoco Vistas Corporation Limited, is primarily engaged in the manufacturing and marketing of cement. An overview of NVLs operational and financial performance for the year under review is given below:

• Cement sales volume stood at 8,536 KT, as against 7,936 KT in the previous year

• Earnings before Interest,Tax, Depreciation and Amortisation (EBITDA) for FY 2024-25 was clocked in at Rs.373.91 crores, down from Rs.529.66 crores in FY 2023-24

• The PAT in FY 2024-25 was recorded at Rs.21.74 crores compared to Rs.45.11 crores in FY 2023-24.

RISK MANAGEMENT

Transforming Economic and Industry Dynamics Impact

The Company is aware that economic slowdowns and muted sectoral growth can dampen consumption and delay the rollout of expansion initiatives. These challenges can result in reduced demand and slower adoption of innovative solutions. This requires the Company to remain agile and adjust its strategies accordingly to navigate the shifting market dynamics. Mitigation Strategy

Nuvoco has robust demand for its cement products across its core markets in East and North India, supported by a deeply rooted and loyal dealer network. This solid market presence offers a degree of insulation from major demand fluctuations. The Companys flexible business model is designed to swiftly adapt to shifting economic landscapes, enabling it to respond efficiently to evolving market dynamics. In addition, Nuvoco emphasises on nurturing collaborative relationships with its suppliers and partners and fostering a shared approach to managing uncertainties. This focus on adaptability and partnership enhances the Companys resilience in an ever- changing business environment.

Raw Material and Fuel Price Volatility Impact

The cement industry, characterised by its heavy reliance on capital, energy, and raw materials, faces significant challenges in ensuring fuel and raw material security. The ongoing geopolitical tension adds another layer of complexity, potentially affecting supply chains and impacting profitability. While a dip in fuel prices offered some relief, the advantage was limited by subdued cement pricing-driven by excess capacity and tepid market demand. Price dynamics further varied across regions, with some markets witnessing upward trends while others experienced price corrections. This added another layer of complexity to overall margin sustainability.

Mitigation Strategy

Nuvoco deploys a comprehensive strategy to mitigate these challenges. Nuvoco addresses energy challenges through a well- rounded strategy focused on fuel diversification, efficiency, and long-term supply security by optimising fuel and energy mix which enhanced plant performance and expanding the use of AFR. This includes integrating waste-derived materials into the manufacturing process, reducing dependence on conventional fuels and supporting circularity. In parallel, long-term supply agreements for critical raw materials like slag provide an added layer of operational stability and reduce exposure to supply risks. Sustainability is deeply embedded in Nuvocos innovation agenda. Each product is designed with a clear objective-to contribute to the Companys low-carbon goals. Through these concerted efforts, Nuvoco is steadily progressing toward its broader vision of responsible growth and a more climate- resilient future.

Increasing Competition Impact

In the intensely competitive cement industry, Nuvoco operates in a dynamic landscape experiencing wave of mergers and acquisitions. To stay ahead, the Company must consistently sharpen its competitive strategies—any lapse could result in a dip in market share and strain its operational and financial performance.

Mitigation Strategy

Nuvoco is well-equipped to navigate the pressures of an increasingly competitive market by anchoring its strategy in customer satisfaction, operational efficiency, and a strong external orientation. Its approach is built around 4 (four) key pillars: Optimal Product Mix, Dynamic Market Intelligence, Cost Leadership, and Customer Centricity - which together reinforce its brand promise across markets.

The Company is focused on strengthening its product portfolio by increasing the share of premium and blended cement products. These offerings are less price-sensitive and plays a critical role in protecting margins during market downturns.

By leveraging real-time data and analytics, Nuvoco monitors regional demand-supply dynamics, enabling it to adopt dynamic pricing strategies that align with market conditions and ensure profitability.

To enhance brand recall, especially in Tier II, Tier III cities, and rural markets, Nuvoco is executing targeted initiatives like Sabse Khaas Sarpanch and Sabse Khaas Pehelwaan. These programs are designed to highlight product quality and regional relevance while offering best-in-class platforms for customer engagement and driving volumes.

On the operations front, Nuvoco benefits from its strength in raw material sourcing, supported by long-term strategic tie- ups that ensure cost-effective operations aligned with industry benchmarks.

A key differentiator is the Construction Development and Innovation Centre (CDIC)- a collaborative hub that delivers customised, innovative solutions tailored to the evolving needs of the building materials sector, reinforcing Nuvocos position as a value-driven and customer-centric brand.

Advancements in Technology Impact

Staying at the forefront of technological advancements is essential for Nuvoco to maintain its competitive edge. Falling behind in this area could result in higher production costs, operational inefficiencies, and pressure on profitability. Embracing innovation not only drives process optimisation but also ensures the Company remains agile and future-ready in a rapidly evolving industry landscape.

Mitigation Strategy

Nuvocos commitment to operational excellence is reflected in its sustained investments in advanced facilities and technical capabilities. With a strong foundation in R&D, the Companys modern infrastructure supports every product line including Cement, RMX, and MBM businesses. This ensures consistent quality and performance. Central to this ecosystem is the CDIC, which acts as a critical interface with customers, offering tailored solutions to the unique needs of the building materials industry. Driving this transformation is Nuvocos strategic integration of technology across its operations. The Company continues to invest in the upkeep of proven systems while actively adopting new and emerging technologies. A key enabler in this journey has been the use of Al, data analytics, and digital tools to enhance decision-making, optimise resource use, and increase reliability in service delivery.

In manufacturing and quality management, Al-powered models are now embedded to predict product strength, forecast quality outcomes, and optimise raw material inputs. These innovations have significantly improved the consistency and performance of products across both Cement and RMX businesses.

Regulatory Changes Impact

Nuvoco operates in a highly regulated environment shaped by evolving environmental laws and statutory requirements. Adhering to these frameworks is critical, as any lapses in compliance can result in legal liabilities, reputational risks, and a direct impact on profitability. With frequent changes in the regulatory landscape-particularly concerning mining policies and royalty structures, the Company remains vigilant and proactive in aligning its operations with the latest directives. Staying compliant with key legislations such as the amended Mines and Minerals (Development and Regulation) Act is not just a regulatory necessity but a strategic priority that safeguards business continuity and long-term sustainability.

Mitigation Strategy

Nuvoco is strongly committed to legal and regulatory compliance, seamlessly integrating it with its broader sustainability agenda. The Company continuously refines its internal protocols to reflect the latest regulatory developments, ensuring that its operations remain compliant and future-ready. This approach is complemented by strategic efforts to reduce its environmental impact-most notably through initiatives that enhance fuel flexibility. Additionally, the Company maintains rigorous adherence to Government-mandated Standard Operating Procedures (SOPs) for the safe handling of hazardous materials. This reinforces its commitment to safety and environmental responsibility at every operational level.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

Nuvoco upholds internal financial controls tailored to the size and complexity of its operations. Throughout the fiscal year, these controls underwent thorough assessment, revealing no significant flaws in their design or functionality. Regular reassessments ensure their adequacy and adaptability to the evolving business landscape.

The Board confirms the robustness and effectiveness of Nuvocos internal financial controls during FY 2024-25. This assessment was based on the framework of internal financial controls, evaluations conducted by in-house internal audit team, including the Statutory Auditorsaudit of internal financial controls over financial reporting, as well as reviews undertaken by Management and the Audit Committee.

Furthermore, the Board asserts that Nuvoco has implemented policies and procedures to uphold integrity in business conduct, safeguard assets. This ensures the timely preparation of accurate financial information, maintaining the accuracy and completeness of accounting records, and preventing and detecting fraud and errors.

HUMAN RESOURCES

Nuvoco values its most important asset—People. They are at the core of the Companys purpose and progress. The Company is committed to cultivating a workplace that inspires excellence and fuels passion, built on a culture of trust, respect, and inclusivity. The human capital strategy continues to evolve, with a strong focus on engagement, empowerment, capability development, and well-being.

Every employee plays a vital role in driving Nuvocos collective success and sustaining its reputation as one of the industrys most desirable workplaces. This has been recognised through several accolades, including the Progressive Place to Work award by ET Now, a commendation from the Confederation of Indian Industry (CM) for people development systems, and the Best Employer Branding Awardatthe 2024 India HR Leadership Awards hosted by the Synnex Group.

Throughout the year, employee connection was fostered through various planned initiatives, including seminars, learning programmes, and self-paced learning modules. As of March 31, 2025, the Companys total employee strength stood at 3,921.

Employee Experience and Capability Building

In FY 2024-25, the Company launched several initiatives to enhance employee experience, development, and engagement. A key highlight is the establishment of functional academies within Nuvoco University for critical functions such as Manufacturing, Sales, HR, Finance, Logistics, and Procurement. These academies focus on building essential and future-ready skills, through partnerships with premier institutions like NT Madras, I IT Kharagpur, NT Mumbai, FLSmidth, and Society for Human Resource Management (SHRM).

Furthermore, the Company is committed to building a robust leadership pipeline through initiatives such as BOLT (Building Outstanding Leadership Talent) and ALP (Advanced Leadership Program). These leadership development journeys are designed in collaboration with reputed institutions like Indian School of Business (ISB), Harvard, and UpGrad, with the aim of preparing employees for future leadership roles.

Employee Value Proposition and Policy Innovation Nuvocos employee value proposition (EVP), Enabling You to Be Future-Readyis built on four pillars-Leadership, Learning, Career, and Care-and the recognition framework brings this to life. Leadership is reinforced through a culture of transparency, accessibility, and respect. Learning is enabled via recognition- linked upskilling and continual learning through Nuvoco University. Career is supported through internal mobility, visibility, leadership development programs and mentorship programmes. Care is expressed by recognising empathy and culture of wellness.

Digital Integration and Process Excellence

Nuvoco continues to digitise core HR processes to enhance efficiency, transparency, and employee experience. The Nuvoco Employee Self-Service Tool (NEST) serves as the central platform forTalent Management, Learning, Recruitmentand Performance. Tools like NuTEP (digital expense management) and Portico (Flexi Benefit claims) have streamlined workflows and enabled digital tracking . On the learning front, Nuvoco Learning Connect (NLC) remains the go-to digital hub for capability development. Looking ahead, the Company is exploring Enterprise Al and Business Intelligence platforms such as SAP Joule and Power Bl to accelerate data-to-insight journey. These tools are expected to strengthen reporting, reduce turnaround time, and unlock deeper workforce analytics to drive talent and Organisational growth.

Talent Acquistion

Nuvoco is dedicated to fostering meaningful employee growth by promoting internal mobility, skill development, and strategic talent acquisition. The Internal Job Posting (UP) system allows employees to explore diverse roles within the Organisation. To ensure the right talent is matched to the right roles, Nuvoco integratesfriction competenciesthroughout its hiring process - embedding them in assessments, psychometric tests, and interviews to identify candidates who best fit the Organisations needs.

Complementing this, Nuvocos apprenticeship programmes at Ready-Mix Concrete plants offer practical, hands-on training over three to six months. Additionally, the campus hiring initiative, the NextGen program, targets fresh talent across Graduate Operations Trainees (GOTs), Graduate Engineer Trainees (GETs), and ManagementTrainees (MTs).

Recognition, Engagement, and Communication

A culture of appreciation is actively nurtured at Nuvoco through a range of recognition platforms that celebrate excellence at every level. Programmes such as NuSmiles, Quarterly Functional Rewards & Recognition (R&R), Sultan of Sales incentive programme and the prestigious Nuvoco Edge Awards honour contributions across individual, functional and enterprise levels. Complementing these are specialised programmes tailored to business functions which spotlight outstanding performance within their respective domains.

Open communication is a foundation of Nuvocos culture. Regular updates from the Managing Director and leadership team ensure alignment on Organisational strategy and priorities. Structured feedback mechanisms empower employees to share their perspectives, fostering trust, inclusion, and a culture of continuous improvement.

Diversity and Inclusion

At Nuvoco, diversity is viewed as a strength that fuels innovation and progress. The Company continues to build a well-rounded workforce, balanced across age groups, experience, and gender. Its employee referral programme is geared towards encouraging diverse talent, while leadership roles are filled through a merit- based approach within an inclusive environment. As the business expands.a strong and diverse talent pipeline reinforces Nuvocos commitment to a more inclusive and future-ready Organisation.

Employee Wellbeing and Safety

Nuvoco adopts a holistic approach to employee wellbeing, covering physical, mental, and financial health. Key initiatives include Employee Assistance Programmes (EAPs), a wellness app and regular mindfulness sessions. Ahealth passportsystem was introduced to track wellness indicators (BMI, blood pressure, sugar levels), categorising employees into Red, Amber, or Green zones and enabling personalised health plans. The initiative earned Nuvoco an industry recognition with a Health and Wellness Award.

Medical insurance coverage was extended to immediate family members, along with subsidised health check-ups for immediate families. Safety remained a core focus, with strengthened protocols, awareness campaigns, and the deployment of on-site doctors at plant locations.

To support modern work-life balance, Nuvoco introduced Residential Wi-Fi reimbursements, enhanced House Rent Allowance (HRA), and offered five days of paternity leave— promoting gender-balanced caregiving and supporting rising living costs.

Industrial Relations

During FY 2024-25, Nuvocos manufacturing units enjoyed a period of cordial industrial relations. The support of unions and workers played a pivotal role, as they actively collaborated with the Company to achieve peak production levels while promoting a culture of safety and well-being at the workplace. Occupational Health and Safety

At Nuvoco, safety is a non-negotiable core value under CARE and is embedded in every aspect of operations. The Companys Zero Harmphilosophy is not just a commitment-its a way of life. The Company has built a safety-first culture that extends across every role, function, and site.

While the Lost Time Injury Frequency Rate (LTIFR) rose from 0.28 to 0.61 in FY 2024-25, Nuvoco continued to reinforce its safety culture. Over 2.13 lakh man-hours of training were delivered, covering Behaviour-Based Safety (BBS), Risk Assessment, Fire Safety, and Road Safety. Tools such as safety heat maps and company-wide campaigns supported proactive risk mitigation. Special focus was placed on road safety for non-manufacturing teams, especially Sales personnel who spend significant time on the road. Following a rise in road-related incidents, targeted awareness sessions were conducted, with training extended to include their family members and channel partners—reinforcing a culture of safety beyond the workplace.

Leadership engagement remained strong through Safety Positive Assurance Reports (SPAR), 100% safety orientation completion, and the release of theKoshish handbook. Business- specific actions included safety audits, emergency response drills, and task observations across Cement, RMX, and Project sites. Road and electrical safety programs were also extended to channel partners and communities.

These comprehensive efforts earned multiple national safety awards. Going forward, Nuvoco will continue to focus on incident learning, stakeholder engagement, digital safety tools, and sustained leadership involvement-with a unified goal of achieving a zero-harm workplace.

Vigil Mechanism and Whistleblower Policy Nuvoco remains dedicated to complying with all applicable laws and regulations, and upholding the highest standards of ethical conduct. This commitment to integrity, transparency, and corporate ethics is reinforced through the adoption of a comprehensive Vigil Mechanism and Whistleblower Policy approved by the Board of Directors.

This proactive framework empowers all stakeholders—including employees and directors - to report concerns about potential misconduct, unethical behaviour, or regulatory violations. The mechanism ensures that individuals can voice their concerns openly and responsibly, without the fear of retaliation or discrimination.

To uphold confidentiality and trust, the Company has instituted strict protocols that safeguard the identity of whistleblowers throughout the reporting process. Additionally, Nuvoco has embedded robust safeguards against any form of victimisation or bias, thereby fostering a workplace culture rooted in accountability, fairness, and ethical responsibility.

Prevention of Sexual Harassment

Nuvoco is deeply committed to fostering a workplace culture that is inclusive, respectful, and free from all forms of discrimination and gender bias. As an equal opportunity employer, Nuvoco upholds the highest standards of dignity and fairness for every individual, regardless of gender or background. In line with this commitment, the Company has established a comprehensive

policy framework designed to prevent sexual harassment and eliminate gender-based prejudice.

A key component of this framework is the Internal Complaints Committee (ICC), which is entrusted with the responsibility of addressing complaints with integrity, sensitivity, and strict adherence to the provisions of the Sexual Harassment of Women at Workplace (Prevention, Prohibition, and Redressal) Act, 2013, and its accompanying rules. Nuvocos approach extends well beyond regulatory compliance, focusing on creating a safe, supportive, and empowering environment where every voice is valued, every concern is taken seriously, and every individual is treated with the respect they deserve.

CORPORATE SOCIAL RESPONSIBILITY (CSR)

At Nuvoco, the commitment to sustainable development is firmly anchored in the core value of Care. The Company believes that genuine progress is achieved only when it goes hand-in- hand with the well-being of communities and the environment. Through a focused and strategic CSR framework, Nuvoco strives to make a meaningful and lasting impact particularly in the areas of its operations across key areas such as health, education, livelihood, and environmental stewardship. Nuvocos CSR approach is shaped by five foundational pillars:

Saksham Bharat - Enhancing employability through livelihood initiatives and skill development

Sangrahit Bharat - Focused on managing and conserving

natural resources fora greener tomorrow

Swasth Bharat - Promoting health and well-being through

accessible healthcare and awareness programmes

Shikshit Bharat - Empowering individuals through quality

education and learning opportunities

Sanrachit Bharat - Supporting the development of rural infrastructure to uplift and empower communities Driven by a vision to foster self-reliant and resilient communities, Nuvoco emphasises inclusive participation and long-term sustainability in all its CSR endeavours. By aligning development efforts with local needs and aspirations, the Company aims to improve the overall quality of life and build stronger and more capable societies.

Saksham Bharat (Empowered Women &Youth)

Nuvoco believes that skill development is essential for fostering self-reliance and improving quality of life. Through various training programmes, the Company empowers youth and women with practical skills that enhance employability and open up new livelihood opportunities. Flagship initiatives like Nuvo Mason provide hands-on training to masons, improving their technical capabilities and earning potential. Additionally, Aakriti and Project Daksh wherein Nuvoco invests in women empowerment by training rural girls and facilitating their integration into the workforce. The Company also collaborates with farmers in West Bengal through Project Samriddhi to promote sustainable agricultural practices, enhancing productivity and income through agri-allied activities. Sangrahit Bharat (Sustainability Initiatives for Community) Environmental stewardship is integral to Nuvocos community efforts. Under this pillar, the Company undertakes various initiatives to conserve natural resources and promote sustainability. These include the installation of solar panels initiatives for water conservation through Project Jal Sanchay, and large-scale tree plantation drives. All these are aimed at reducing the carbon footprint and fostering greener, more resilient communities.

Swasth Bharat (Health Care for Women and Children)

Promoting health and hygiene is another key area of focus. Nuvoco supports initiatives that enhance access to primary healthcare, clean drinking water, and better sanitation, with special attention to the needs of adolescent girls. The Company also plays a significant role in upgrading and supporting Anganwadi centres and allied healthcare activities through Project TARA, thereby strengthening early childhood care and healthcare delivery in rural communities.

Shikshit Bharat (Improving Quality of Education)

Nuvoco recognises education as a powerful catalyst for social change. Under this initiative, the Company is focused on enhancing both the accessibility and quality of education in rural and underserved regions. This is achieved through the development of modern educational infrastructure, including the establishment of smart classrooms, computer labs, provision of benches and desks, teaching aids, and improved sanitation facilities. These efforts are designed to create a more engaging and supportive learning environment for students.

Sanrachit Bharat (Building Infrastructure for Community) Infrastructure development is critical to community wellbeing. Nuvoco contributes by building and upgrading vital infrastructure such as roads, school buildings, drainage systems. and community centres. These projects not only enhance the quality of life in the areas where the Company operates but also support inclusive growth. Tree plantations along roadsides and within community spaces further reinforce the commitment to sustainable development.

CAUTIONARY STATEMENT

Certain statements in the MDA section concerning future prospects maybe forward-looking statements that involve several underlying identified/non-identified risks and uncertainties that could cause actual results to differ materially. In addition, the foregoing changes in the macro-environment may pose an unforeseen, unprecedented, unascertainable, and constantly evolving risk(s), inter-alia, to Nuvoco and the environment in which it operates. The results of these assumptions are made based on available internal and external information and form the basis for determining certain facts and figures stated in the Report. Since the factors underlying these assumptions are subject to change over time, the estimates on which they are based are also subject to change accordingly. These forward-looking statements represent only Nuvocos current intentions, beliefs or expectations and any forward-looking statement speaks only as of the date on which itwas made. Nuvoco assumes no obligation to revise or update any forward-looking statements, whether because of new information, future events, or otherwise.