Nalco Net Profit Declines 10.64% To Rs 478 Crore

Indias largest primary aluminium producer saw its net profit fall 10.64 per cent in March 1997 to Rs 478.30 crore.

The company, however, declared a marginally higher turnover at Rs 1769.41 crore for the period ended March 31, 1997 as against Rs 1744.17 crore for the previous year.

Other income was lower by over Rs 7.5 crore to Rs 52.48 crore for the just concluded fiscal. Expenditure in March 1997 rose 7.2 per cent to Rs 994.42 crore.

Hence, operating margins excluding non-operational inco-me dropped from 46.81 per cent in March 1996 to 43.79 per cent in March 1997.

Depreciation was slightly lower at Rs 270 crore in 1996-97 against Rs 286.51 crore during 1995-96. Interest cost fell from Rs 64.83 crore to a mere Rs 9.08 crore.

This was quite a surprise since the company had provided for Rs 23.16 crore as interest cost.

But for the full year the company has adjusted currency gains against the Japanese yen and hence interest cost stands at Rs 9.08 crore.

The company paid Rs 63.84 crore as minimum tax which restricted net profit to Rs 478.30 crore against Rs 535.26 crore in March 1996.

With an equity capital of Rs 1,288.62 crore, earnings per share fell from Rs 4.15 in March 1996 to Rs 3.71. On the BSE, the Nalco stock opened at Rs 53 and closed lower at Rs 50.

Analysts feel that the company has put up a good show despite lower aluminium prices for most of the second half of the fiscal year. However, analysts feel that the company benefited by higher metal prices during the last two months of the fiscal year.

According to the analysts, the company also managed to reduce inventory levels substantially.

Nalco also held up its performance through higher production of both alumina and aluminium.

In 1996-97, the company produced 840,062 tonnes of alumina and 203,823 tonnes of primary metal.

Exports of alumina stood at 465,139 tonnes while that of aluminium were 60,357 tonnes.

The company sold 145,522 tonnes of metal in the domestic market.Rs crore

1996-97 1995-96

Gross sales 1769.41 1744.17

Other income 52.48 60.03

Expenditure 994.42 927.55

Interest 9.08 64.83

Tax 63.84

Net profit 478.3 535.26

Equity 1288.62 1288.62