Nalco hits a new low

about 11 days ago
No Image

National Aluminium Company Limited or NALCO, as it is popularly recognized, is a Navratna group ‘A’ CPSE having integrated and diversified operations in mining, metal and power under Ministry of Mines, Government of India. Presently, Government of India holds 52% equity of NALCO.

The stock has hit a new 52-week low today at Rs.39.40, going down below 8% and remains among the top five losers on the BSE currently.

The market is very disappointed with its performance for Q1FY20. . There was a fall in overall operating efficiencies. Revenue dropped 30% (YoY) at Rs.2084 crore and net profit slumped down by a huge 86% to Rs.98 crore. The fall might be looking all the more precipitated because in previous Q1, the company had an exceptional gain of Rs.91 crore.

Yet, there is no denying the fact that its earnings have slipped. EBITDA was down 79% at Rs.214 crore and margins slipped from 34% to 10.3%.

Last month, the Comptroller and Auditor General of India (CAG) had pulled up the company for less than optimal performance resulting in excess expenditure and loss of earning to the tune of more than Rs 2,000 crore. The CAG report pointed out a 57-month delay in awarding the work order for a processability study for technological upgradation at the refinery.

Popular Comments

No comment posted for this article.