Nalco, as was expected, posted a very good earnings report for Q4FY21. Strong operational performance was led mainly by, as all over the metals sector, by higher realisations.

Its consolidated net profit for the quarter rose over 9-times from Rs.100 crore to Rs.936 crore (YoY) on a revenue of Rs.2874 crore, up 41%.

On a sequential basis, revenue was up 19%, net profit by 3 times. EBITDA rose over 1 times to Rs.944 crore while EBITDA margin rose from 18.2% to 33.5%.

The company said that after the peak period of COVID-19 outbreak and with the opening of the markets, it witnessed a significant recovery in the second half of FY21.

The company is optimistic about the future as further easing and resumption of economic activities, is expected to lead to a robust growth in the long run, with its focus on increasing the production in mining and refining segments and opening up of the new coal blocks.

The market initially reacted positively to this news; from its close of yesterday at Rs.80.05, it rose to hit a new 52-week high at Rs.82.50 and is now trading in the red at Rs.79.10. Its 10% UC for the day is at Rs.88.05.