Nelcast Limited, a leading producer of Ductile and Grey Iron castings in India, announced its financial results for the third quarter and nine months ended December 31, 2021.
Revenue from operations was at Rs232.2cr in Q3FY22, a 25.0% yoy growth from Rs185.8cr in Q3FY21. Exports for 9MFY22 stood at Rs166.9cr, up 102.5% yoy. The growth was primarily led by an increase in export volumes as well as better realizations, the company said in a filing.
The bottom-line stood at Rs2.1cr in Q3FY22, down by 66.1% from Rs6.1cr in Q3FY21. EBITDA dropped by 22.7% yoy to Rs15.4cr; EBITDA margin at 6.5%. De-growth was due to a steep increase in all raw material prices specifically certain Ferro-alloys for which the pass-through to the customer did not happen in Q3, it said.
At around 11.45 am, Nelcast Ltd was trading at Rs83.55 per piece down by Rs0.9 or 1.07% from its previous closing of Rs84.45 per piece on the BSE.
Segmental Revenue
P Deepak, Managing Director & CEO, said, “The Third Quarter turned out to be a very challenging quarter for us as we saw a drop in sales from the Tractor industry. This came at the back of OEMs reducing their production to dilute finished vehicle inventory due to lower sales than forecasted. This made the seasonality more severe than a typical year. The Commercial Vehicle segment started to show signs of a gradual recovery in Q3, however, it was a little slower than what was anticipated. Our export segment witnessed a slight slowdown as well due to chip shortages that impacted our end customers’ ability to assemble vehicles.”
“As we look forward, recovery in the Commercial Vehicle segment in Q4 seems strong and while Tractor segment appears to remain sluggish in the next quarter as well, we expect a very strong recovery to happen from Q1FY23 onwards. We also believe that the problem of semiconductor chip shortages is gradually improving, and this will help boost demand overseas as our customers build more vehicles and catch-up on the order backlogs. The recovery in the domestic and global markets, along with our upcoming product launches give us the confidence to experience strong growth in the years to come,” he added.
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