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Nalco’s net profit up 31% to Rs 1069 cr

NALCO has posted net profit of Rs 1069.30 crore in 2010-11,up by 31 per cent.

Written by Agencies | Bhubaneshwar |
May 30, 2011 5:57:49 pm

Navratna public sector National Aluminium Company Limited (NALCO) has posted net profit of Rs 1069.30 crore in 2010-11,up by 31 per cent over previous year’s figure of Rs 814.22 crore.

The company registered impressive results both in sales and profit for 2010-11,a company statement said here.

According to the audited financial results for the year 2010-11,taken on record by the Board of Directors in a meeting held in New Delhi today,NALCO has posted net profit of Rs 1069.30 crore,registering an increase of 31 per cent over previous year-s figure of Rs 814.22 crore.

Similarly,the sales turnover of Rs 5958.98 crore,also showed a rise of 18 per cent,from Rs 5054.73 crore achieved in the previous fiscal.

“The results would have been still better but for the adverse impact of exchange rate of rupee on sales,which made a dent of Rs 159 crore,” a senior executive said.

The rise in net profit and sales turnover is mostly attributed to better market realisations,in addition to some contributions by way of higher production and sale of metal.

During the year,average sales realization per tonne of alumina has gone up to USD 350 from USD 264 in 2009-10.

Similarly,average sales realization per tonne of aluminium metal jumped to USD 2335 from USD 1946 in the previous year.

The company has reported improved performance in terms of production and sales for 2010-11. During the year,the company has achieved the highest-ever cast metal production of 443,597 tonnes,against the previous best of 431,488 tonnes achieved during the previous fiscal.

Similarly,with the commissioning of 10th unit of captive power plant in middle of the year,NALCO registered an increase in net power generation to 6608 million units,up from 6293 million units last year.

Besides,NALCO’s mine produced 48.24 lakh tonnes of bauxite ore with more than 100 per cent capacity utilisation.

However,the production of alumina hydrate was slightly lower at 15.56 lakh tonnes,against 15.91 lakh tonnes in 2009-10,company sources said.

On the sales front,the company has improved the performance in metal sale at 438,952 tonnes,against the previous best of 435,979 tonnes in 2009-10.

This has been possible due to rise in demand for aluminium and improvement in company’s share in the domestic market. Besides,Nalco has also widened its international customer base for metal by adding new overseas clients during the year.

Sale of alumina was however lower at 6.86 lakh tonnes as against last year’s sale of 7.47 lakh tonnes,largely due to more captive consumption for production of metal.

However,the operating cost has increased by Rs 400 crore (10per cent) during the year due to increase in prices of coal and fuel oil and provisioning for wage revision. The depreciation was higher by Rs 103 crore due to commissioning of one more captive power unit during the year and provision for impairment.

Nalco not to depend on market for its capex needs

Navaratna PSU and aluminium major Nalco,which posted a net profit of Rs 1069 crore in 2010-11,has no plan to raise funds from market for its future capital needs.

This was decided at the company’s Board of Directors meeting held in New Delhi today.

“The company has no plan to approach markets to raise debt or equity for its capex needs in near future,” a company spokesman said.

Stating that though the company has projected capital investment of Rs 1057 crore in 2011-12 towards various greenfield and brownfield projects,it would depend on its own resources based on healthy cash balance available.

The company plans mainly for capacity upgradation of its alumina refinery,setting up a wind power plant,equity share in joint venture for nuclear power plant and for developing Utkal-E Coal Mine – a captive coal block allotted to in in the next fiscal.

The balance payments for second phase of expansion project would also entail substantial capex during the year,sources said.

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