
National Aluminium Company (Nalco), one of the largest integrated aluminium companies, wears a success hat for recording a fivefold jump in net profit in the first quarter of financial year ending on June 30, 2018. From INR 129 crore in the year-ago period, the state-run firm’s net profit has clocked at INR 687 crore in Q1 FY2018-19, reportedly surpassing the whole net profit of INR 642 crore in FY 2013-14.
"As compared to the corresponding quarter of the last year, the growth in net profit has jumped by a whopping 433 per cent, from INR 129 crore to INR 687 crore," Nalco said in a statement.
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The revenues also jumped 34 per cent to INR 3035.42 crore in Q1 FY2018-19 against INR 1997.43 crore in the corresponding period of the previous year, attributed primarily to the surge in revenue profit from its alumina business. The company’s Damanjodi unit has earned a name as the lowest cost producer of alumina, besides reportedly focusing on pre and post sales service coupled with quality that helped it command a high premium in the international market.
Compared to the last quarter of financial year 2017-18 ending on March 31, Nalco’s operating profit in Q1 FY2018-19 recorded a two-fold hike from INR 362 crore to INR 889 crore. EBITDA margin increased too from 19 per cent to 36 per cent, despite a growth in input cost by 15 to 20 per cent during the first quarter in contrast to the previous one, reported the company.
During the quarter, bauxite production stood at 18.59 lakh tonnes, as against the 18.81 tonnes produced during the corresponding period of the previous year. Alumina hydrate production was at 5.83 lakh tonnes, 10.74 per cent up from 5.26 lakh tonnes produced during the corresponding period of the last fiscal. Aluminium production also rose8.85 per cent during the quarter, from 1.01 lakh tonnes in Q1 FY 2017-18 to 1.10 lakh tonnes in Q1 FY 2018-19.
Tapan Kumar Chand, CMD, Nalco, accredited all the success to team work, strong cost focus, and strategic planning as well.
Nalco’s total sales of alumina were seen at 3.20 lakh tonnes, while that of aluminium at 1.05 lakh tonnes in Q1 2018-19.
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