NALCO Q1 PAT seen down 38% YoY to Rs 234 cr
National Aluminium Company (NALCO) is set to declare its results for the quarter ended June 2012 on Tuesday. Analysts on an average expect the profit after tax to fall by 38% year-on-year and 17% quarter-on-quarter to Rs 234.3 crore.
August 13, 2012 / 18:47 IST
National Aluminium Company (NALCO) is set to declare its results for the quarter ended June 2012 on Tuesday. Analysts on an average expect the profit after tax to fall by 38% year-on-year and 17% quarter-on-quarter to Rs 234.3 crore.
Net sales are expected to be flat at Rs 1,740 crore during the quarter as against Rs 1,733 crore in a year ago period and Rs 1,753.4 crore in the previous quarter.Earnings before interest, tax, depreciation and amortisation (EBITDA) are seen gong down by 39% YoY to Rs 304.3 crore, but quarter-on-quarter the same is likely to rise by 10%.EBITDA margin is expected to be at 17.5% as against 28.9% in the corresponding quarter of last fiscal and 15.7% in the previous quarter.In the fourth quarter of financial year 2011-12, the profit after tax had included more than Rs 100 crore on account of an exceptional items and MAT credit in addition to its higher other income.Factors:Net sales are likely to decrease on a QoQ basis due to lower LME prices and stable aluminum volumes:LME Aluminum went down by 24% YoY and 9.2% QoQ to USD 2,030 per tonne. However, the depreciation of 7% QoQ in Indian rupee against the US dollar will partly offset falling LME prices.Alumina sales volumes would grow 2% YoY to 2,91,000 tonnes while aluminum volumes would remain stable at 1,09,000 tonnes.Increased availability of linkage coal will support margins: Coal supply situation has eased after increased availability of linkage coal in the last quarter.NALCO has been suffering on account high power cost as it is unable to get sufficient coal through linkage from the Mahanadi Coal Field. It has been dependent on high cost e-auction and imported coal.Analysts feel the NALCO's ageing equipment and reliance on imported coal has been hitting the company's profitability. Key positive trigger power cost to remain high till Utkal coal block commissioned: Till the commissioning of Utkal coal block, NALCO will not be able to reap the full benefits of its increased refining capacity and power capacity. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
