OREANDA-NEWS. June 02, 2011. National Aluminium Company Limited (NALCO), the Navratna PSU under Ministry of Mines, Government of India, has returned impressive results, both in sales and profit for the year 2010-11, reported the press-centre of NALCO. 

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, up by 31% over the previous year’s figure of Rs.814.22 crore and sales turnover of Rs.5958.98 crore, up 18%, over 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 during the year.

The rise in net profit and sales turnover is mostly attributed to better market realizations, in addition to some contributions by way of higher production and sale of metal. During the year under review, the average sales realization per tonne of alumina has gone up to US\\$ 350 from US\\$ 264 in 2009-10. Similarly, the average sales realization per tonne of aluminium metal has jumped to US\\$ 2335 from US\\$ 1946 in the previous year.

The company has reported improved performance in terms of production and sales for the year 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, the company’s mine produced 48.24 lakh tonnes of bauxite ore with more than 100% capacity utilization. However, the production of alumina hydrate was slightly lower at 15.56 lakh tonnes, against 15.91 lakh tonnes in 2009-10. 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. The 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.

The operating cost has increased by Rs.400 crore (10%) 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. The company has projected capital investment of Rs.1057 crore in 2011-12 towards various greenfield and brownfield projects, mainly for capacity up-gradation 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 the company. The balance payments for 2nd phase of expansion project would also entail substantial capex during the year. All these investments are planned by the company to be self-funded, based on healthy cash balance available. The company has no plan to approach markets to raise debt or equity for its capex needs in near future.