FY24 Annual Result Announced for Nelcast Ltd.
Industrial Products company Nelcast announced Q4FY24 & FY24 results: Total Revenue was at Rs 1,281.2 crore, flat at 0.09% YoY EBITDA at Rs 106.5 crore, up 11.6% YoY; EBITDA margin at 8.3%. The Profit After Tax stood at Rs 54.4 crore and Adjusted Profit After Tax stood at Rs. 36.6 crore Sector-wise Revenue: In FY24, the largest share was contributed by M&HCV; making up 38.6% of the total revenues, followed by Tractors – 21.2%, Exports – 35.4%, Railways – 2.2%, Off-highway equipment – 2.3%, and Others – 0.3%. In FY23, M&HCV; contributed 39.3% to revenues, Tractors – 29.3%, Exports – 26.2%, Railways – 3.2%, Off-highway equipment – 1.7%, and Others – 0.3%. Commenting on the performance, Deepak Reddy Ponnavolu, Managing Director & CEO of Nelcast, said “The operational and financial performance for FY24 reflects both the challenges and successes we have encountered. The year was marked by a slow demand in the second half, influenced by the general elections, which notably affected the sales of our M&HCV; segment and muted demand from tractor market. However, we reported an exceptional performance in our export division. We achieved a remarkable 35% year-onyear growth in exports, exceeding our target of Rs 100 crore each quarter and concluded FY24 with an impressive Rs 445 crore of export revenue. This success is part of a sustained growth story, with a seven-year compound annual growth rate (CAGR) of 40% from FY18 to FY24. The EBITDA per kg also saw a notable increase to Rs 12.48, up by 10% YoY from Rs 11.34 in FY23, thanks to improved operational performance. Our Pedapariaya Plant in Andhra Pradesh now boasts a newly installed 1 MW inhouse solar power plant, reinforcing our dedication to sustainability and cost-effectiveness while reducing our carbon footprint. Looking ahead, we are optimistic about the export market's trajectory, anticipating strong growth fuelled by increased volumes and the introduction of new products. In the domestic market, we expect to see a resurgence in the Commercial Vehicle industry in H2FY25. With robust export growth, a proficient team, and continued operational efficiencies, we are poised to deliver strong performance in the coming fiscal year. Our strategic initiatives and resilient business model equip us to navigate market fluctuations and capitalize on growth opportunities.” Result PDF14-05-2024