Nalco Q4 Review – Beneficiary Of Higher Aluminium Prices: Motilal Oswal

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National Aluminium Co.’s Q4 FY21 results were strong, led by higher London Metal Exchange prices and lower costs.

It reported Ebitda of Rs 9.4 billion (up 118% QoQ) and profit after tax of Rs 6.3 billion (up 162% QoQ).

The beat on Ebitda was led by better-than-expected costs, partly owing to the reversal of renewals purchase obligations – as per the notification issued by Odisha Electricity Regulatory Commission – booked under other expenses.

Employee cost was down 11% QoQ to Rs 4.31 billion and other expense 31% QoQ to Rs 2.8 billion.

We raise our FY22E/FY23E Ebitda estimate by 43%/27%, factoring in higher aluminium prices, which should support strong cash flows and a good dividend payout.

Click on the attachment to read the full report:

Motilal Oswal Nalco Q4FY21 Result Update.pdf


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