Lower aluminium prices on the London Metal Exchange (LME) together with spurt in raw material and fuel costs led to a sharp fall of 80 per cent in the net profit of National Aluminium Company (Nalco).
The company has posted Rs 51.22 crore net profit in the October-December quarter of 2011-12 as against Rs 255.95 crore in the corresponding period of previous fiscal.
“The dip in net profit is primarily because of lower prices of products linked to LME, increase in prices of input raw materials and fuel, and also due to one-time arrear payment following the long-term wage settlement with unions,” said Nalco's chairman and managing director B L Bagra.
The aluminium major's turnover in the period under consideration registered a marginal increase to Rs 1,527.86 crore compared to Rs 1,523.31 crore logged in the year-ago period. Aluminium output in the April-December period of this fiscal at 0.3 million tonnes was a tad lower than 0.33 million tonnes in the comparable period of previous fiscal as 120 pots were taken off the stream.
Alumina hydrate production, in the nine-month period, however, rose from 1.14 million tonnes to 1.17 million tonnes. Similarly, bauxite produce in this period went up from 3.47 million tonnes to 3.70 million tonnes, recording growth of 6.62 per cent.