NALCO Q2 profit jumps 37 times on operational performance

National Aluminium Company (NALCO) reported strong numbers with the second quarter (July-September) net profit growing 37.3 times year-on-year to INR 179 crore on operational performance.

Strong results were on the back of higher coal linkage in Q2, Ansuman Das, CMD said. He feels strong performance in Q2 is sustainable in October-March FY14 and falling input costs will aid margins during the same period.

Net sales of the company rose 7.8 percent to INR 1,710 crore in three-month period ended September 2013 from INR 1,585.9 crore in a year ago period, driven by chemicals business.

Earnings before interest, tax, depreciation and amortisation (EBITDA) stood at INR 238.6 crore in the quarter gone by as against loss of INR 24 crore and operating profit margin reported at 14 percent as against (-1.5 percent) year-on-year.

Power and fuel cost as a percentage of net sales dropped to 30 percent from 47 percent during the same period.

Revenues from its chemicals business climbed 49 percent Y-o-Y to INR 965.5 crore during September quarter while aluminium business fell 22 percent to INR 975.14 crore and electricity business dropped 19 percent Y-o-Y to INR 377.5 crore during second quarter.

During the same period, chemicals business contribution to sales increased to 41.6 percent from 27.5 percent and aluminum contribution declined to 42.1 percent from 52.9 percent.

At 10:01 hours IST, the stock was trading at INR 38.55, up 1.45 percent after rising more than 5 percent in early trade.