Nelcast: Nelcast Q2 profit spikes 262% YoY to Rs 12.15 crore supported by topline, operating performance. Revenue grows 37%. The company has reported a 262% year-on-year increase in consolidated profit at Rs 12.15 crore for the quarter ended September FY23, supported by topline as well as operating performance. Revenue at Rs 328.52 crore for the quarter increased by 37.4% compared to year-ago period.
PRO Only Highlights
- Quarterly performance largely backed by improved realisations
- Medium-term triggers China plus and protectionist measures for tyre industry
- Valuations not inexpensive; but improved medium-term outlook
- Quarterly performance largely backed by improved realisations
- Medium-term triggers China plus and protectionist measures for tyre industry
- Valuations not inexpensive; but improved medium-term outlook
Highlights Volume decline QoQ due to technical failure Strong demand from commercial vehicles and exports Margins guidance maintained for FY23 despite volume decline Investors with a long-term view can accumulate stock on declines Nelcast (CMP: Rs 100; Market capitalisation: Rs 874 crore) is into the manufacturing of ductile and grey iron castings. Nelcast’s products cater to Original Equipment Manufacturers (OEMs) and Tier-1 customers in the commercial vehicle (CV), tractors, off-highway equipment, railways and passenger vehicle segments. The Q3FY23 results of Nelcast were below our expectations. Volumes...