Nalco FY11 profit jumps 31% on better realisations

National Aluminium Company Ltd (Nalco) has posted a net profit of Rs 1,069.30 crore, up 31 per cent over the previous year's Rs 814.22 crore, and the sales turnover amounted to Rs 5,958.98 crore against Rs 5,054.73 crore in the previous year.

According to a press release issued here, the board of directors met in New Delhi on Monday and announced the results.

The results would have been more impressive but for the adverse impact of exchange rate on sales, which made a dent of Rs 159 crore during the year, the release said.

The rise in net profit and sales turnover is due to better market realisations in addition to higher production of metal. The average sales realisation per tonne of alumina went up to $350 from $264. The average sales realisation per tonne of aluminium metal jumped to $2,335 from $1,946 during the previous year.

The highest ever cast metal production of 4,43,597 tonnes was reported during the year against the previous best of 4,31,488 tonnes. With the commissioning of the tenth unit of the captive power plant, the Nalco registered an increase in net power generation to 6,608 million units, up from 6,293 million units during the previous year.

The company's mine produced 48.24 lakh tonnes of bauxite ore with more than 100 per cent capacity utilisation. However, the production of alumina hydrate was slightly lower at 15.56 lakh tonnes against 15.91 lakh tonnes in 2009-10. On the sales front, Nalco improved its performance in metal sales at 4,38,952 tonnes against the previous best of 4,35,979 tonnes in 2009-10. There was rise in demand for aluminium and there was improvement in company's share in the domestic market. New overseas clients were added during the year. The sale of alumina was lower at 6.86 lakh tonnes against last year's sales of 7.47 lakh tonnes, largely due to more captive consumption for production of metal.

The operating cost increased Rs 400 crore (10 per cent) due to increase in prices of coal and fuel oil and provisioning for wage revision. The depreciation was higher by Rs 103 crore due to decommissioning of one more captive power unit during the year and provision for impairment.

The company has projected capital investment of Rs 1,057 crores in 2011-12 towards various greenfield and brownfield projects, mainly for capacity upgradation of its alumina refinery, setting up a wind power plant, equity share in joint venture for nuclear power plant and for developing Utkal-E coal mine — a captive coal block allotted to it. Nalco will meet the cost of the projects through its internal resources and it has no plans to raise debt or equity.

COMMENT NOW