Quarterly Results: National Aluminium Company Ltd

Technical View: 

National Aluminium Company Ltd., ended at Rs. 66.2, up by 1 points or 1.53% from its earlier closing of Rs. 65.2 on the BSE.

The scrip touched a high and low of Rs. 68.9 and Rs. 65.5 respectively, after opening at 65.5. Altogether 4708462(NSE+BSE) shares have been traded on the counter so far; and the stock is trading below its 50 DMA.

Standalone Results Q2FY17:

National Aluminium Company Ltd., (NALCO)  has reported its Q2FY17 standalone results after market hours.

NALCO’s reported numbers for the quarter have come in as a mixed bag as compared to Bloomberg estimates. While revenue figures were greater than the estimate of Rs 1,772 cr by 4.2%, both EBITDA and Net Profit figures have come in substantially lower than the estimates. EBITDA for the quarter has not met the estimated figure of Rs 255 cr by 32.4% and net profit has not met the Rs 181 cr estimate by 33%.

The company’s standalone revenue for the quarter has dropped 4.3% yoy to Rs 1,846 cr, triggered by a 16.5% yoy drop in chemical segment revenues.

Nalco's EBITDA has eroded 50.7% yoy to Rs 172 cr with EBITDA margins shrinking 878 bps to 9.3%. Operating expenses have surged by 6% yoy, triggered by a 7.2% yoy rise in power & fuel expenses.

The company's net profit for the recently concluded quarter has dropped by 51.8% to Rs 121 cr, attributed to the poor operational level performance and a 24.6% yoy rise in depreciation and amortisation expenses.