Although production in the first quarter of the current fiscal year grew by ten percent year-on-year, National Aluminium Company Limited’s (Nalco) bottom line declined by almost one quarter in the same period.
The firm reported a net profit between April and June of INR135 crore, down year-on-year from INR174.3 crore. Revenue increased 3.87% year-on-year, to INR1549 crore, EBITDA decreased by 14.85% to INR195 crore, and the firm’s EBITDA margin declined by 277 basis points year-on-year to 12.59%. Nalco’s net profit margin declined by 22% year-on-year in the quarter, to INR139 crore. Net profit margin declined by 298 basis points year-on-year to 8.98%, due in large part to low market realization.
Chemicals accounted for 44.2% of Nalco’s revenue in the quarter, and aluminium made up the remaining 54.64% of revenue.
Nalco’s aluminium production totaled 94,496 metric tons in the quarter, a ten-percent increase year-on-year from last year’s quarterly total of 85,722 metric tons. The firm produced 1,489 million units of power in the quarter, also up ten percent year-on-year from last year’s 1,358 million units. Included in this total is 52 million units of power produced via wind energy.
Bauxite production rose substantially in the quarter, to 1.7 million metric tons, which is a 46% increase year-on-year over last year’s quarterly production of 1.2 million metric tons. Alumina production in the quarter was 524 thousand metric tons, a 35% increase year-on-year from last year’s 388 thousand metric tons.
A company spokesman told an Indian media outlet that the significant jump in production was dampened by low market realization. According to the spokesman, Nalco sold 291 thousand metric tons of alumina and 82 thousand metric tons of raw aluminium in the quarter. He also pointed out that the firm’s performance should still be seen as a “silver lining” in the difficulties in the domestic and global metals markets.