Nalco net profit dips 22% in Q1FY17 due to lower market realization

The State-owned aluminium producer National Aluminium Company Limited (Nalco) posted a 22.5 per cent decline in net profit in the first quarter June 30, 2016. Net profit stood at INR135 crore against INR174 crore of the corresponding period previous year. The company's profitability was hit by lower market realization, and even an increase in production could not stop it from being affected.

Total standalone income of the Navratna firm rose by 4 per cent to INR1,549 crore in April-June quarter this fiscal from INR1,491.27 crore during the same quarter in 2015-16 fiscal. Nalco stock on BSE closed at INR7, down 5.05 per cent from its previous close.

The company's total income from operations inched higher by 3.8 per cent to INR1549 crore in Q1FY17 compared to INR1491.27 crore in the corresponding period previous year. The total expenses, on the other hand, were higher at INR1,473.19 crore from INR1,361.63 crore during the period under review.

Nalco grew its sale of alumina and aluminium in the face of slackening demand for the commodities both in the global as well as domestic market. Total sale of alumina sale during the quarter reached 2.91 lakh tonne while aluminium sales touched 82,386 tonne, the company said in an official release yesterday.

The financial results for the quarter were declared in a meeting held in Bhubaneswar yesterday in presence of the company’s Board members. During Q1Fy17, the aluminium major produced 17.04 lakh tonnes of bauxite, up 46 per cent from the same period previous year when the production of the ore stood at 11.64 lakh tonnes.

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