Nalco Q1 Results Review - Weakness In The Chemical Business Hits Performance: Motilal Oswal

The recent exploration and lithium mining agreement with Argentina’s CAMYEN SE, will help the company establish its presence and enhance the supply chain for critical and strategic minerals.

Aluminium cold rolled sheets and coils sit inside Nalco Ltd.'s manufacturing plant. (Source: Company website

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Motilal Oswal Report

National Aluminium Company Ltd.’s revenue stood at Rs 29 billion in Q1 FY25 (-10% YoY/-20% QoQ versus our estimate of Rs 39 billion). The miss was mainly due to the weak operational performance in the chemical business.

Consolidated Ebitda stood at Rs 9.0 billion (YoY/QoQ: +57% /-16%) against our estimate of Rs 11.3 billion during the quarter.

Nalco's Ebitda margin stood at 32.7% (our estimate: 26%) versus 18.7% in Q1 FY24 and 30.9% in Q4 FY24, supported by healthy operating margin from the aluminum segment.

Adjusted profit after tax for the quarter stood at Rs 5.9 billion (YoY/QoQ: +76% /-13%) versus our estimate of Rs 7.4 billion.

The Board declared a final dividend of Rs 2 per share for FY24.

Click on the attachment to read the full report:

Motilal Oswal NALCO Q1FY25 Results Review.pdf
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Also Read: Nalco Q1 Results: Profit Up 76%, But Misses Estimates

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