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Alicon Castalloy sheds over 1% after delivering resilient performance in Q2FY22

Increased volumes and the resultant operating leverage have enabled the company to deliver improved profitability.

November 12, 2021 11:34 IST | India Infoline News Service
Alicon Castalloy
Alicon Castalloy Ltd has announced its financial results for the quarter and half year ended September 30 2021.

Performance Review for Q2FY22 vs. Q2FY21
  • Total Income at Rs268.73cr compared to Rs205.15cr
  • EBITDA at Rs25.26cr compared to Rs26.71cr
  • PBT at Rs4.66cr as compared to Rs5.61cr
  • Profit after Tax at Rs3.02cr compared to Rs5.28cr
Performance Review for Q2FY22 vs. Q1FY22
  • Total Income at Rs268.73cr compared to Rs211.68cr
  • EBITDA at Rs25.26cr compared to Rs18.03cr
  • PBT at Rs4.66cr as compared to Rs(3.22)cr
  • Profit after Tax at Rs3.02cr compared to Rs(4.20)cr
Performance Review for H1FY22 vs. H1FY21
  • Total Income at Rs480.41cr compared to Rs258.81cr
  • EBITDA at Rs43.30cr compared to Rs3.30cr
  • PBT at Rs1.44cr as compared to Rs(39.11)cr
  • Profit after Tax at Rs(1.17)cr compared to Rs(38.71)cr
Commenting on the performance, Rajeev Sikand, Group CEO, Alicon Castalloy said, “In Q2, we witnessed a recovery in demand in the domestic markets on the back of improved economic activity, which translated to higher overall volumes during the quarter. This could have been better but for the shortage of semi-conductors which has constrained production schedules for our customers.

There was also an element of higher pricing of alloys during the period. The combination of these factors has enabled us to report consolidated revenues of Rs268.7cr during the quarter, higher by 31% YoY and 27% QoQ.

Increased volumes and the resultant operating leverage have enabled us to deliver improved profitability. However, the compression in margin is optical due to the higher base driven by increase in input prices. Our contracts with our customers enable a 100% pass-through and we are actively engaging with them to shorten the lag. This will enable more rapid transmission of input prices, thereby protecting our working capital and cash flow position to a considerable extent.

In this quarter, we have announced several order wins with multiple existing and new OEMS, which further strengthen the growth visibility in the years ahead.

We are encouraged to share that incremental orders to be executed over the next 5 years now aggregate over Rs3,000cr. Further, we have built a portfolio of over 65 live parts in the EV business. We are confident that EV revenues will contribute 25% of overall revenues by FY2025-26.

While there are supply-side constraints in the shorter-term, from a longer run perspective, we are seeing very exciting times in the domestic auto industry. The recently announced PLI scheme along with the scrappage policy and FAME scheme work in favour of the domestic auto and auto components sectors in multiple ways.

Even on the supply side, our ongoing interactions with our partners indicate that the RM issues are beginning to ease and with continual retail enquiries and the upcoming festive season, we remain positive that the volumes will see a steady uptick in the quarters ahead.”

At around 11:33 AM, Alicon Castalloy was trading at Rs773 apiece down by Rs9.65 or 1.23% on the BSE.

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