Riding on higher realization from metal sales, the net profit of National Aluminum Company (NALCO) has gone up by 31 per cent during 2010-11 to Rs 1,069.30 crore, up from Rs 814.22 crore in the previous year.
In 2010-11, the average realization from alumina sales was $ 350 per tonne, up from $ 264 in the previous year. Similarly, the average price of aluminium in the international market jumped to $ 2,335 per tonne in the last fiscal, up from $ 1,946 per tonne a year ago.
Aluminum prices soared globally last year due to limited availability on London Metal Exchange, higher demand and closure of some smelter plants in China after a stiff power tariff hike there. Power cost makes more than 35 per cent of aluminum production.
Higher metal prices pushed the net sales of the Navartna PSU by 18 per cent to Rs 5,959 crore in 2010-11.
However, a stronger rupee, costlier coal and fuel oil and burden of salary hike dented the company's profit to some extent, the audit report pointed out.
“The result 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,” said a company release.
The commissioning of the new captive power plant produced additional 351 million power units, which totaled to 6,608 million units of power produced by Nalco. The company's cast metal production rose to 443,597 tonne in 2010-11, up from 431,488 tonne in the previous year due to higher bauxite ore mining. In the current financial year, Nalco has plans to invest Rs 1,057 crore to set up a wind power plant, upgrade aluminum refinery and jointly finance a nuclear power plant and to develop a captive coal mine. All these projects will be self-funded by the company.