NCL Industries Limited, the flagship company of the NCL Group, has been serving the construction industry for the past 37 years with top-quality cement, popularly known as Nagarjuna Cement. Established in 1979 and based in Secunderabad, India, NCL Industries Limited is a premier manufacturer of high-quality cement, ready-mix concrete, and other building materials.
The genesis of NCL Industries Limited can be traced to the Golden Era of entrepreneurial development in Andhra Pradesh (pre-bifurcation) of the early 1980s. Nagarjuna Cement Limited, as the Company was known then, established a mini cement plant at Mattapalli in Nalgonda (now Suryapet) District to augment the supply of scarce cement with relatively low investment. This turned out to be a resounding success. The cement produced under the brand name 'Nagarjuna' established a premium image in the coastal districts of Andhra Pradesh.
NCL Industries operates through five distinct segments: Cement, Boards, Hydel Power, Ready Mix Concrete, and Readymade Doors. The Cement segment currently generates the maximum revenue for the company, underscoring its core business strength. The company has strategically diversified its portfolio across multiple business verticals to establish a comprehensive presence in the construction materials industry.
The cement division remains the core business, where the company offers various types of cement, including ordinary Portland, pozzolana Portland, and special cements. These are tailored for applications ranging from small housing projects to megastructures and irrigation projects, all sold under the trusted Nagarjuna brand. Starting with a modest capacity of 200 TPD, the company has expanded its cement plant capacity in stages and now boasts a level of over 8000 TPD, spread across two locations.
Beyond cement, the company also provides:
- Ready-mixed concrete under the _Nagarjuna RMC_ brand.
- Cement-bonded particleboards under the _Bison Panel_ brand. Bison Panel is notable for being made out of 62% cement and 28% wood, utilizing fast-growing species like Eucalyptus and Poplar.
- Readymade doors under the _NCLdoor_ brand.
In addition, NCL Industries operates two mini-hydel power projects with a total installed capacity of 15.75 MW. This diversification into renewable energy demonstrates the company's commitment to sustainable operations.
Nagarjuna Cement, renowned for its superior quality and premium image, primarily caters to the markets of Telangana, Andhra Pradesh, Tamil Nadu, Pondicherry, and Karnataka. The company has built a robust distribution network comprising over 2000 dealers, ensuring widespread availability of its products across South India.
From a limited market for cement covering local areas, NCL Industries has expanded its reach. Its Boards and Doors products now serve a nationwide market in major cities including Delhi, Mumbai, Pune, Chennai, Bengaluru, Kochi, and Kolkata. This expansion demonstrates the company's growth from a regional player to a national presence in specific product categories.
NCL Industries Ltd has a market capitalization of approximately ₹1,032 crore as of June 2025, positioning it as a mid-cap player in the building materials sector.
The company's latest quarterly results for Q4 FY25 (ended March 2025) are as follows:
- Revenue: ₹382.86 Crore
- Net Profit: ₹6.93 Crore
However, the net profit for Q4 FY25 saw a significant decline of -71.1% compared to the same period last year, indicating recent challenges in profitability.
For the full financial year FY24 (ended 2024), the company reported:
- Total Income: ₹2,331.97 Crore
- Profit: ₹93.22 Crore
The annual performance showed better resilience compared to the quarterly results.
Despite operational challenges, NCL Industries maintained growth in its core cement business for Q4 FY25:
- Cement Production: Increased by 8% YoY to 790,663 MT.
- Cement Sales Volume: Rose by 7% YoY to 794,096 MT.
However, other segments experienced declines in Q4 FY25:
- Cement Boards Production: 20,767 MT (down 5% YoY).
- Cement Boards Sales: 20,438 MT (down 6% YoY).
- Ready-Mix Concrete (RMC) Production & Sales: 73,954 CuM (down 14% YoY).
- Readymade Doors Production & Sales: 4,725 units (down 23% YoY).
These figures reflect market pressures impacting the diversified product categories.
- Low Return on Equity (ROE): 6.95% over the last 3 years.
- Poor Sales Growth: 8.51% over the past five years.
These metrics indicate areas where the company needs to focus on improving operational efficiency and growth momentum.
- Promoter Holding: 42.3%, indicating strong management control and commitment to the business.
NCL Industries continues to reward shareholders through dividend payments. The Board of Directors, at its meeting held on 12 February 2025, recommended an interim dividend of ₹1 per equity share.
NCL Industries Limited stands as a well-established player in India's building materials industry with a diverse product portfolio spanning cement, boards, doors, ready-mix concrete, and renewable energy. While facing recent operational challenges, the company's four-decade legacy, strong brand presence, and comprehensive distribution network position it for continued participation in India's construction sector growth story.
