Nalco net up 110% at Rs 595 cr

Leading domestic manufacturer and exporter National Aluminium Company (Nalco) has achieved 110.22 per cent jump in net profit to Rs 595 crore for the second quarter ended September 2006 against Rs 283.04 crore recorded in the corresponding period last year.

Meanwhile, the company has declared higher dividend of 50 per cent (including 20 per cent interim dividend paid during February 2006) compared with 40 per cent in the previous year.

According to the unaudited financial results for the three-month period of this financial year taken on record in the Nalco board meeting held in New Delhi today, the sales turnover of the company rose to Rs 1,582.65 crore from Rs 1,149.98 crore during the same quarter in the previous year.

For the first half of the 2006-07, Nalco achieved a net profit of Rs 1,217.30 crore, a jump of 116 per cent over the previous period figure of Rs 563.60 crore. Similarly, the sales turnover increased to Rs 3,203.47 crore from Rs 2,221.68 crore in the previous period.

The company has also reported improved production of aluminium in the six-month period, which increased to 1,80,087 tonne from 1,78,097 tonne last year.

Nalco handed over final dividend cheque of Rs 168.45 crore to Sis Ram Ola, Union minister of mines, for 87.15 per cent shares held by the government in the company on a total paid-up capital of Rs 644.31 crore.

The balance amount of final dividend has been sent to over 53,000 shareholders constituting 12.85 per cent of paid-up capital.

Nalco is among select profit-making PSUs that have had consistent performance in production and profitability. During 2005-06, the company achieved highest ever aluminium metal sale of 3,53,841 tonne against 3,38,527 tonne in the previous year. It also achieved highest-ever net profit of Rs 1,562.20 crore compared with Rs 1,234.84 crore in the previous year and record sales turnover of Rs 5,324.16 crore surpassing the previous high of Rs 4,420.14 crore.

Besides, Nalco also achieved record foreign exchange earning of Rs 2,306.20 crore against Rs 2,200.25 crore in the previous year.

The company is currently implementing its second phase expansion programme involving a fresh investment of Rs 4,091.51 crore. After completion of this expansion programme Nalco's aluminium capacity will increase from 3.45 lakh tonne to 4.60 lakh tonne.