Nalco net jumps 31% to Rs 1,069 cr

Navratna public sector National Aluminium Company Limited (Nalco) has posted a net profit of Rs 1,069.30 crore in FY11, up by 31% over previous year's figure of Rs 814.22 crore.

The company registered impressive results both in sales and profit for FY11, a company statement said here.

Similarly, the sales turnover of Rs 5,958.98 crore, also showed a rise of 18%, from Rs 5,054.73 crore achieved in the previous fiscal.

"The results would have been still better but for the adverse impact of exchange rate of rupee on sales, which made a dent of Rs 159 crore," a senior executive said.

The rise in net profit and sales turnover is mostly attributed to better market realisations, in addition to some contributions by way of higher production and sale of metal.

During the year, average sales realization per tonne of alumina has gone up to $350 from $264 in FY10. Similarly, average sales realization per tonne of aluminium metal jumped to $2,335 from $1,946 in the previous year.

The company has reported improved performance in terms of production and sales for FY11. During the year, the company has achieved the highest-ever cast metal production of 443,597 tonne, against the previous best of 431,488 tonne achieved during the previous fiscal.

Similarly, with the commissioning of 10th unit of captive power plant in middle of the year, Nalco registered an increase in net power generation to 6,608 million units, up from 6,293 million units last year.

Besides, Nalco's mine produced 48.24 lakh tonne of bauxite ore with more than 100% capacity utilisation. However, the production of alumina hydrate was slightly lower at 15.56 lakh tonne, against 15.91 lakh tonne in FY10, company sources said.

On the sales front, the company has improved the performance in metal sale at 438,952 tonne, against the previous best of 435,979 tonne in FY10.

This has been possible due to rise in demand for aluminium and improvement in company's share in the domestic market. Besides, Nalco has also widened its international customer base for metal by adding new overseas clients during the year.

Sale of alumina was however lower at 6.86 lakh tonne as against last year's sale of 7.47 lakh tonne, largely due to more captive consumption for production of metal.

However, the operating cost has increased by Rs 400 crore (10%) during the year 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 commissioning of one more captive power unit during the year and provision for impairment.