NALCO faced huge loss due to global slowdown

BHUBANESWAR: National Aluminium Company Limited (NALCO), the Navratna PSU and India’s leading producer and exporter of alumina and aluminium, has

the first pinch of global slowdown with its profit dipping to Rs 127 crore in the 1st quarter ended June 30 from Rs 525 crore during the same period in the last fiscal registering a negative growth of 76%. Due to low prices, the turnover for the quarter has also reduced considerably.

This is in spite of the fact that the blue-chip company registered an impressive 20.46% increase in aluminium production to 104,776 tons from 86,979 tons in the. “The slowdown has definitely impacted the profit bottom lines of the Company despite impressive increase in production and sales. The prices have began bouncing since July and consequently, we hope to fare better in the next quarter”, Nalco director [finance], B L Bagra told “The ET” on Monday.

Alumina production has increased to 400,800 tons from 392,900 tons in corresponding quarter last year. Power generation also increased by 14.35% to 160 million units [MU] from 1400 MU.

On the sales front, Nalco also achieved total sale of 93,104 MT of aluminium in the 1st quarter, which was 84,103 MT in the corresponding period of previous year. Despite prevailing sluggish market conditions, Nalco has been able to increase its export of aluminium to 27,995 tons from 12,623 tons in the corresponding quarter.

Meanwhile, as part of growth strategy, Nalco has plans to set up two Greenfield projects in India, which include an Rs.16500 crore Smelter and Power Complex at Jharsuguda in Orissa and a Rs.6000 crore Mines and Refinery Complex in Andhra Pradesh.