Shares of this Navratna CPSE company fell 4 percent on Monday after missing the market estimates and exhibiting a dip in the basic operational indicators.
The stocks of National Aluminium Company Limited, popularly known as NALCO, are trading in the red today opening at Rs 92.25 and currently trading at a price of Rs 90.60, slipping around 4 percent as compared to the previous close of Rs 94.30 apiece.
The company’s share prices took a hit today after it published underperforming results for the quarter ended June 2023.
The company, on a quarterly basis, reported a fall in operating revenues as well as after-tax profits with the former reducing from Rs 3,671 crores during Q4FY22-23 to Rs 3,178 crores during Q1FY23-24, and, the latter, during the same time period, falling from Rs 495 crores to Rs 334 crores.
In addition, having a glance at the annual numbers reported by the company, the above metrics showed a similar pattern of movement with the operating revenues taking a shift down from Rs 3,795 crores during June 2022 to Rs 3,178 crores during June 2023, and, the net profits moving down from Rs 558 crores to Rs 334 crores indicating a reduction of approximately 40 percent.
The company’s Board also recommended a Final Dividend for FY22-23 of Rs 1 per equity share, i.e., a payout of 20 percent on the Face Value of Rs 5 per equity share. The payment of the same is subject to the shareholder’s approval.
The company’s leverage ratio such as the debt-to-equity ratio has been ‘zero’ since the last four financial years.
According to the June 2023 quarter shareholding data, the company’s Promoters, i.e., the President of India, hold a 51.28 percent stake, and the Foreign Institutional Investors (FIIs) also hold a considerable stake of 14.95 percent.
National Aluminium Company Limited (NALCO) is engaged in the business of mining, producing, as well as selling aluminum and alumina-based products. The company owns and operates a wide range of power plants throughout India. A majority of the company’s revenue is contributed by domestic operations in India.
Written by Amit Madnani
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