NCL Industries Reports 12% Decline in Cement Production, Doors Segment Grows
NCL Industries Ltd, a prominent Hyderabad-based cement manufacturer, has released its operational update for the third quarter of FY2024, showing mixed performance across its business segments. While the cement segment faced a downturn, the doors division posted a robust performance, driving overall growth.
In a challenging quarter for the cement industry, NCL Industries reported a 12 percent year-on-year (YoY) decline in cement production, falling to 6.61 lakh tonnes from 7.49 lakh tonnes in Q3 FY2023. Similarly, cement dispatches also dipped 11 percent YoY, totalling 6.62 lakh tonnes, down from 7.41 lakh tonnes in the previous year. This reduction in cement output is attributed to sluggish demand, likely reflecting broader market trends and ongoing challenges within the sector. Adding to the decline, the company’s cement board production dropped by 3 percent YoY, falling to 20,231 tonnes, while dispatches decreased by 5 percent YoY to 18,743 tonnes. The ready-mix concrete (RMC) segment also showed a marginal decline of 1 percent, with production and sales standing at 88,258 cubic metres (CuM), compared to 80,974 CuM during the same period last year.
However, amidst the overall weakness in the cement division, the company reported significant growth in its doors segment. The doors division saw a remarkable 39 percent YoY growth, with production and sales reaching 8,680 units, up from 6,237 units in Q3 FY2023. This growth highlights the resilience and strength of NCL Industries’ diversification strategy, as the doors segment continues to outperform expectations. Despite the mixed performance, the company’s shares ended the day at ₹204, marking a slight dip of ₹0.15 or 0.073 percent on the Bombay Stock Exchange (BSE). Investors will likely be keeping a close eye on future performance, particularly how the cement segment recovers and if the doors segment can sustain its growth trajectory.
