NALCO Q1 net profit jumps 5-fold to Rs 687 cr

Aluminium maker Nalco today said its net profit recorded a five-fold jump to Rs 687 crore for the first quarter ended June 30, 2018.

The state-run firm had clocked a net profit of Rs 129 crore in the year-ago period.

"As compared to the corresponding quarter of the last year, the growth in net profit has jumped by a whopping 433 per cent, from Rs 129 crore to Rs 687 crore," Nalco said in a statement.

Earnings before interest, tax, depreciation and amortisation (EBITDA) margin of the company has increased from 19 per cent to 36 per cent, despite increase in input cost by 15 to 20 per cent during the first quarter as compared to the previous quarter, it said.

Tapan Kumar Chand, CMD, Nalco, attributed the success to team work, strong cost focus and strategic planning.

"It may be mentioned that the net profit figure of Rs 687 crore in the first quarter of 2018-19 surpassed the whole net profit of Rs 642 crore in 2013-14. This significant growth in profit has mainly come from the Alumina revenue segment, Damanjodi, which has achieved the distinction of being the lowest cost producer of Alumina in the world," the statement said.

Apart from the cost focus, it is the pre and post sales service of Nalco, coupled with its quality which has helped the company in commanding a high premium in international market, it said.

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, which is 10.74 per cent higher as compared to 5.26 lakh tonnes produced during the corresponding period of the last fiscal.

During the quarter, the company produced 1.10 lakh tonnes of aluminium, which is 8.85 per cent higher than 1.01 lakh tonnes produced in the first quarter of the previous financial year.

The statement said, "The net power generated during the quarter was 1,682 million units. This has gone up by 5.14 per cent, against 1,599 million units generated in the corresponding period of the last year."