Nalco Q1 Review - Higher Costs Lead To Ebitda Miss: Motilal Oswal

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Motilal Oswal Report

National Aluminium Company Ltd.’s Q1 FY22 result was below our expectations due to higher than expected costs and miss on volumes/realisation.

Ebitda/adjusted profit after tax declined by 38%/45% QoQ to Rs 8.9 billion/Rs 3.5 billion and missed our estimate by 34%/38%.

We lower our FY22E Ebitda estimate by 10% to factor in higher costs.

However, we raise our FY23E Ebitda estimate by 15% as we revise upwards our FY23E London Metal Exchange aluminum assumption by 7% to $2,300/tonne.

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