Kolkata: National Aluminium Company (Nalco) posted a net profit of Rs 687 crore in the first quarter ending June 30, 2019 (Q1FY19), an over five-fold jump over Rs 129 crore in Q1FY18.
The companys revenues jumped to Rs 3035.42 crore in Q1FY19 against Rs 1997.43 crore in Q1FY18. The countrys largest state owned aluminium major attributed the surge in profitability to revenues from its alumina business, with the companys Damanjodi unit achieving the distinction of being the lowest cost producer of alumina in the world.
Nalcos alumina has a strong brand image and sells at more than 10% premium over the average CRU index. Apart from the focus on costs, Nalco said its pre and post sales service coupled with its quality helped the company command a premium in international markets.
Nalcos operating profit increased more than two-fold, registering Rs 889 crore in Q1 of 2018-19 compared to Rs 362 crore in Q4 of 2017-18. The companys EBIDTA (earnings before interest depreciation, taxes and amortisation) margin increased from 18% to 36%, despite increase in input cost by 15 to 20% during Q1FY19 as compared to the previous quarter. Tapan Kumar Chand, chairman, Nalco attributed the performance to a strong cost focus, strategic planning and team work.
During the quarter, Nalco said bauxite production was at 18.59 lakh tonnes, as against 18.81 tonnes produced during the previous corresponding period. Alumina hydrate production was 5.83 lakh tonnes, which was 10.74% higher compared to 5.26 lakh tonnes produced during the previous corresponding period. During the quarter, the company produced 1.10 lakh tonnes of aluminium, up 8.85% over 1.01 lakh tonnes produced in the first quarter of previous financial year. Total alumina sale during the quarter crossed 3.20 lakh tonnes while aluminium sale touched 1.05 lakh tonnes. The net power generated during the quarter was 1682 million units, up 5.14%, against 1599 million units generated in the corresponding period last year. In the field of renewable energy, the company generated 104 million units of wind power during the quarter under review.
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