Nalco Q1 Results: Profit Up 76%, But Misses Estimates
Despite the fall in revenues, the company saw its margins expand 1400 basis points on account of lower raw material and power costs.
National Aluminum Co's consolidated net profit rose 76% in the first quarter of the current financial year, but missed analysts' estimates.
The aluminum manufacturer's profit increased to Rs 588 crore in the June quarter in comparison to Rs 334 crore in the year-ago period, according to an exchange filing on Friday. Analysts tracked by Bloomberg had a consensus estimate of Rs 741.4-crore profit.
The company's board has also recommended final dividend of Rs 2 per share for the financial year 2023‐24, subject to shareholder approval at the company's upcoming Annual General Meeting.
Nalco Q1 FY25 Earnings Highlights (Consolidated, YoY)
Revenue down 10% to Rs 2,856 crore (Bloomberg estimate: Rs 3,882.1 crore).
Ebitda up 57% to Rs 933 crore (Estimate: Rs 1,137.8 crore).
Ebitda margin expands to 32.7% versus 18.7% (Estimate: 29.3%).
Net profit up 76% to Rs 588 crore (Estimate: Rs 741.4 crore).
The decline in the revenue was primarily driven by the 27% fall in revenue in the chemical segment. The company's margin, however, expanded on lower raw material and power costs.
Nalco's cost of raw materials decreased 34%, while the power and fuel costs saw an annual decline of over 25%
