Nelcast Ltd, a company based in Chennai, India, recently reported its financial results for the second quarter and the first half of the fiscal year 2024. Here’s an explanation of the key points from the report:
- Export Achievement: In the second quarter (Q2) of fiscal year 2024, Nelcast Ltd achieved export revenues exceeding Rs. 100 Crores. This indicates significant growth in their export business, with a year-on-year increase of over 58%.
- Financial Performance: Nelcast reported a Profit After Tax (PAT) of Rs 17 Crores in Q2 FY2024, which represents a 37% year-on-year growth. The EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) per kilogram (kg) was at Rs. 14.9. EBITDA is a measure of a company’s operating performance. This improvement in EBITDA/kg was attributed to increased volume, greater contributions from exports, and stable raw material prices.
- Revenue Growth: Total revenue for the company in Q2 FY2024 was Rs 362.6 Crores, reflecting a 9.3% year-on-year increase and a 22.4% quarter-on-quarter growth. This growth was driven by increased sales volumes, particularly in the Medium & Heavy Commercial Vehicle (M&HCV) and export segments.
- Sector-wise Revenue: In the first half of fiscal year 2024, Nelcast’s revenues were primarily driven by the M&HCV sector (37%), followed by Tractors (23%), Exports (34%), Railways (3%), Off-highway equipment (2%), and Others (1%). This reflects the company’s diversification across various industry segments.
- Outlook: The company is optimistic about its future performance in FY24. They anticipate strong growth driven by the demand in the M&HCV and export sectors. Export sales are expected to continue growing due to a healthy order book.
Nelcast Ltd is a manufacturer of grey and ductile castings, primarily serving the Medium & Heavy Commercial Vehicle (M&HCV) and tractor industry segments. They also generate a significant portion of their revenue from export markets. The company manufactures various products such as differential carriers, suspension brackets, and transmission casing. Nelcast has factories located in Tamil Nadu and Andhra Pradesh, with a total installed production capacity of 160,000 tonnes per annum.
In summary, Nelcast Ltd reported positive financial results for the second quarter of FY2024, with a significant focus on export growth, an increase in EBITDA, and a strong outlook for the coming fiscal year, especially in the M&HCV and export segments.
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