Alicon Castalloy Ltd announces Q1 FY21 Earnings

Alicon Castalloy Ltd (Alicon), one of the leading integrated manufacturers of aluminum castings in India, announced its financial results for the quarter ended June 30, 2020.

Financial Performance Highlights

Performance Review for Q1FY21 vs. Q1FY20

- Total Income at Rs. 53.66 crore compared to Rs. 267.04 crore
- EBITDA at Rs. (23.42) crore compared to Rs. 27.84 crore
- PBT at Rs. (44.73) crore as compared to Rs. 7.75 crore
- Profit after Tax at Rs. (43.99) crore compared to Rs. 5.08 crore

Performance Review for Q1FY21 vs. Q4FY20

- Total Income at Rs. 53.66 crore compared to Rs. 198.33 crore
- EBITDA at Rs. (23.42) crore compared to Rs. 12.82 crore
- PBT at Rs. (44.73) crore as compared to Rs. (7.89) crore
- Profit after Tax at Rs. (43.99) crore compared to Rs. (5.84) crore

Commenting on the performance, Mr. Rajeev Sikand, Group CEO, Alicon Castalloy said, "The unprecedented circumstances and restrictions in place during the quarter severely impacted the business performance. Implementation of lockdown led to immediate suspension of production as well as deliveries across domestic and export markets. We lost 41 days of operations at Shikrapur and Binola and 69 days of operations at Chinchwad during the quarter. The resumed operations were at subdued utilisation rates, which, along with supply chain issues has derailed performance. Consequently, consolidated revenues stood at Rs. 53.7 crore in Q1 FY21.

More than ever, this extraordinary situation has highlighted the resilience of Alicon's business model and operational strengths . Despite constraints, our teams were able to support business functions, which enabled us to adapt to the dynamic market situation and ensured continuity in deliveries. Operationally also, we have optimised costs across our business model and brought in higher efficiencies that enabled us to report improvement in the gross margin profile during the quarter.

Looking ahead, even as we are focused on stabilising business amidst uncertainties due to COVID-19, we are future ready and have positioned ourselves at the forefront to address the inevitable rebound in demand and volumes. Our client engagements remain solid and our customers are committed to continuing with the development programs, once the broader macro-situation stabilizes. Overall, we remain confident in our technological prowess, differentiated product offerings and varied solutions for BSVI and E-mobility, which undoubtedly, are the way forward for the auto-industry."

Note: Performance during the quarter is not comparable to corresponding period last year as well as to the preceding quarter due to the unprecedented COVID-19 impact on business operations in Q1 FY21.

Shares of Alicon Castalloy Limited was last trading in BSE at Rs.249.95 as compared to the previous close of Rs. 253.5. The total number of shares traded during the day was 651 in over 37 trades.

The stock hit an intraday high of Rs. 254.45 and intraday low of 239.5. The net turnover during the day was Rs. 162178.

Source : Equity Bulls

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