NALCO Q1 results: Shares fall after earnings miss estimates, despite profit and margin growth

Shares of National Aluminum Company Ltd. (NALCO) fell more than 4% on Monday after the company reported quarterly results for the April-June period that appeared to show a year-over-year increase.

The company reported a net profit of ₹601.2 crore, up 72.1% from the same quarter last year. However, the figure was well below Bloomberg’s consensus estimate of ₹874 crore.

Revenue for the quarter fell 10.2% from the same period last year to Rs 2,856 crore, while Bloomberg analysts’ consensus was for Rs 3,700 crore.

NALCO’s EBITDA before interest, tax, depreciation, and amortisation rose 57.1% compared to the same quarter last year, but fell well short of analysts’ estimates of Rs 13 billion.

EBITDA margin for the quarter rose to 32.7%, up from a year earlier of 18.7% but below the market consensus of 33.4%.

The Board of NALCO also declared an interim dividend of ₹3 per share. The record date for the right to the dividend is 23rd August 2024.

At the current price, NALCO shares are trading at a one-year price-to-earnings ratio of 10.9, which is lower than the five-year average of 15.9.

NALCO shares are currently trading 3.1% lower at ₹171.84. The stock is down 18% from its recent high of ₹209 but is still trading 26% higher since the start of 2024.