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The net profit of the National Aluminium Co Ltd in 2012-13 dropped to Rs 593 crore from Rs 850 crore in 2012-13.
Higher production and sale of alumina, however, propelled Nalco’s net sales up 4.75 per cent at Rs.6,809 crore in FY2013. In the previous fiscal its net sales was Rs.6,500 crore.
The management attributed the sharp decline in profit to depressed aluminium prices on London Metal Exchange and high input costs. The Nalco Board on Monday recommended a final dividend of 10 per cent or Rs 0.50 a share of Rs 5 each. This is in addition to an interim dividend of Rs 0.75 a share, paid during March.
According to market analysts, net profit margin on sale has been gradually declining in the past years. In FY ‘13, it has come down to below 10 per cent.
The metal analyst at Ambit told Business Line net-to-sales margin has dropped to around 9 per cent.
“It had already come down from 33 per cent in 2007-08 to 13 per cent in 2011-12,” said another stock analyst of an institutional brokerage. The Nalco stock finished at Rs 34.85, up 0.87 per cent on the BSE.
jayanta.mallick@thehindu.co.in
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