Read more about Nalco Q2 net profit surges 94% to Rs 235 crore on Business Standard. Buoyant market, focus on cost reduction drive profitability
National Aluminium Company’s (Nalco) net profit for the July-September surged 94 per cent to Rs 235 crore compared with Rs 121 crore logged in the same period of 2016-17. On a sequential basis, the net profit rose 82 per cent compared with Rs 129 crore achieved in April-June of this fiscal.
The company’s strong performance after the rollout of Goods & Services Tax (GST) came on the back of its strategy to ramp up production during a downturn, focus on cost reduction and buoyant market conditions led by favourable alumina prices.
“The market harvesting in alumina segment and focus on cost reduction have helped us improve our profitability. When the global metal market was in the slump cycle, maintained its resilience and faced the international downturn with courage by ramping up production. And now, with the shift of the market towards the upbeat cycle, the decision to remain brave and continue the operations with high productivity and investments has paid off well for the company. The recent financial performance of the is a testimony to this”, said Tapan K Chand, chairman and managing director of
Nalco’s net sales during July-September was up 42 per cent as it rose from Rs 1695 crore to Rs 2,420 crore.
For April-September period, Nalco’s net profit was higher by 42 per cent at Rs 364 crore. Gross sales in the period rose 29.6 per cent to Rs 4179 crore. In this period, mined 3.7 million tonnes of bauxite while its alumina hydrate production stood at 1.03 million tonnes. The Navratna company produced 206,000 tonnes of aluminium, marking a growth of 10.25 per cent. Its total aluminium sales at 202,000 tonnes were higher by 14.19 per cent.
