Nalco - 4QFY2013 Result Review - Angel Broking

Nalco reported better than expected performance both on top line and PAT front. Net sales grew by 4.6% yoy to Rs. 1,835cr (above our estimate of Rs. 1,656cr). Its aluminium segment reported a positive EBIT of Rs. 59cr, compared to an EBIT loss of Rs. 16cr in 4QFY2012 which led to improvement in the performance. Nalco reported an EBITDA growth of 37.6% yoy to Rs. 421cr due to lower power costs. Other income, however, declined by 33.6% yoy to Rs. 159cr and depreciation expenses also increased by 10.6% yoy to Rs. 136cr. Consequently, the company reported a net profit decline of 12.7% yoy to Rs. 246cr (significantly above our estimate of Rs. 201cr).

We recommend Neutral rating on the stock.

Source : Equity Bulls

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