Low mkt realisatons drag down Nalco's Q1 net 26% to Rs 135 cr

Aluminium maker Nalco today said its standalone net profit fell by 26 per cent to Rs 135 crore for the quarter ended June 30, on account of lower market realisations for the metal.
The state-run firm had clocked a net profit of Rs 174.32 crore in the year-go period, it said in a BSE filing.
Total standalone income of the Navratna firm rose 4 per cent to Rs 1,549 crore in April-June quarter this fiscal from Rs 1,491.27 crore during the same quarter in 2015-16 fiscal.
Its total expenses were higher at Rs 1,473.19 crore from Rs 1,361.63 crore during the period under review.

"Despite quantum jump in production, the profit during the quarter took a dip due to low market realisation," the firm said.
The total alumina sale during the quarter was 2.91 Lakh tonnes (LT) and aluminium sale was 82,386 tonnes, it added.

However, considering the sluggishness of international market, Nalco's performance is considered to be a silver lining amid the downturn in both domestic and overseas market, the PSU said.
Nalco's bauxite, raw material used to produce aluminium, rose by 46 per cent to 17.04 LT in April-June quarter this fiscal from 11.64 LT in the year-ago period.
Alumina hydrate production grew by 35 per cent to 5.24 LT against 3.88 LT during the quarter under review.

During the June quarter, Nalco's aluminium production rose by 10 per cent to 94,446 tonnes from 85,722 tonnes in the same period in 2015-16, the company said.
The firm's Rs 2,835 crore offer to buyback 64.43 crore shares opened last month on August 30 and will close this week on September 14.
The offer size represents 22.15 per cent of the aggregate of the fully paid-up share capital and free reserves of the Navratna company for the financial year ended March 31, 2015.
In May, the PSU had announced plans to buyback shares not exceeding 64,43,09,628 (representing 25 per cent of the total number of equity shares in paid-up share capital of the firm).

The buyback is at a price of Rs 44 per share payable in cash for an aggregate consideration not exceeding Rs 2,834.96 crore.
Government holds 80.93 per cent stake in Nalco.