National Alumimiun slips over 4% after Q1 net plunges 40%

The company's consolidated net profit dropped to Rs 333.76 crore in Q1FY24 from Rs 557.91 crore in Q1FY23. Total income was down 16.1 per cent YoY at Rs 3,226.88 crore.

Shares of National Alumimiun dipped 4.5 per cent to hit a low of Rs 90 in Monday's intra-day trades after the company reported a weak set of earnings for the recently concluded June quarter.

At 10:15 AM, the stock was down 2.6 per cent at Rs 91.80 on volumes of around 1.82 lakh shares on the BSE. Meanwhile, the S&P BSE Sensex was down 0.5 per cent at 65,009.

For the quarter ended June 2023, the company's Q1 consolidated net profit of Rs 333.76 crore, down 40.2 per cent when compared with Rs 557.91 crore reported in the June quarter a year ago. Total income declined by 16.1 per cent year-on-year (YoY) to Rs 3,226.88 crore from Rs 3,847.17 crore.

Earnigs were hit due to a 18.2 per cent dip in revenue from aluminium business. This segment revenue for the June 2023 quarter stood at Rs 2,446.89 crore as against 2,990.13 crore in June 2022 quarter. Revenue from chemicals business was down 2.7 per cent YoY at Rs 1,168.98 crore.

The company's board also declared a final dividend of Re 1 per share.

Further the company's board have approved appointment of BSS & Associates, Cost Accountants, as Cost Auditors for FY2023-24, upon the completion of 4 years tenure of Niran & Co.

Brokerage firm, Axis Securities lowered its rating on the stock to 'Hold' from 'Buy' following the Q1 results. 

"We revise our FY24 EBITDA estimates downwards to account for weak Q1FY24 results and incorporate further decline in Aluminium prices in our projections. For FY25, we raise our EBITDA estimate as we further lower the coal and power cost assumption post the further softening in the international coal prices and falling e-auction premium at Coal India. While lower coal costs provide support, the ramp-up of the Coal block and Alumina refinery will be the key triggers.", Axis said in a note.