National Aluminium Company Limited's (Nalco's) net profit for the quarter ended June 30, 2018, surged 433 per cent to Rs 6.87 billion as against Rs 1.29 billion achieved in the comparable period of last fiscal.
On a quarter-on-quarter (q-o-q) basis, Nalco's net profit rose 167 per cent. The company ascribed the sharp appreciation in net profit to its alumina segment. The company's Damanjodi alumina refinery is the lowest cost producer in the world and its quality bauxite along with the pre- and post-sales service has helped Nalco secure a high premium in the international market. Nalco's alumina sells at a premium of 10 per cent over the CRU Index. Nalco's net profit of Rs 6.87 billion surpassed Rs 6.42 billion, which the aluminium company registered in 2013-14.
On a q-o-q basis, Nalco's Ebitda (earnings before interest, taxes, depreciation and amortisation) doubled from 18 per cent to 36 per cent despite 15-20 per cent gain in input costs in April-June quarter of FY19.
Tapan Kumar Chand, Chairman & Managing Director of Nalco, owed the success to teamwork, strong cost focus and strategic planning.
On the production front, Nalco's bauxite output at 1.85 million tonnes in Q1 of FY19 was a tad lower than 1.88 million tonnes in the corresponding period of previous fiscal. Alumina hydrate production, however, was up 10.74 per cent higher at 583,000 tonnes. Nalco's aluminium production moved up 8.85 per cent at 110,000 tonnes. The navratna company sold 320,000 tonnes of alumina and 105,000 tonnes of aluminium.