Nalco rides metal boom to post Rs 736 cr net

Benefiting from expanded capacity and booming market, the National Aluminium Company Limited (NALCO) has posted highest ever net profit of Rs 735.60 crore in 2003-04. This is 41.2 per cent more than the net profit earned in the previous year.

The company also achieved record sales turnover of Rs. 3339.04 crore, which is 21.9 per cent higher than the previous fiscal. Similarly, Nalco's export earning increased by 13.3 per cent to Rs.1717.27 crore over the previous year.

A chunk of this sterling performance by the company owes it to higher price realisation due to rise in the metal price in the London Metal Exchange (LME).

In the first quarter of the calendar year 2004, the aluminium price in LME stood at 1750 dollar per tonne which 22 per cent more than the price quoted in the corresponding period of last year.

The company has made the most of the boom by utilising the expanded capacities following completion of a Rs 3700 crore upgradation programme.

The metal smelting capacity of Nalco was raised to 2,87,500 tonnes in 2003-04 on way to reaching 2,45,000 tonnes during the current fiscal while the bauxite mining and alumina refining capacities had already been doubled to 48 lakh tonne and 16 lakh tonnes in 2002-03.

This has helped the company to surpassed annual targets in all the segments of physical performance. Nalco's bauxite mine crossed the rated capacity to achieve an all-time record production of 48.17 lakh tonnes, against previous year's 47.77 lakh tonnes.

Similarly, alumina production of 15.50 lakh tonnes against 14.80 lakh tonnes in the previous year is also a new record since inception.

Aluminium metal production jumped by 21.9 per cent to 2,98,207 tonnes from 2,44,706 tonnes in the previous year. The company's 960 MW Captive Power Plant achieved record generation of 5122 million units (4291 million units).

On export front, the company achieved new landmark in aluminium export of 129,718 tonnes, while the total metal sale increased by 22.2 per cent to 296,368 tonnes.

Besides, the company exported 9,34,874 tonnes of alumina during the year. Higher volumes as well as improved market conditions helped the company to report record results.

Meanwhile, the second phase expansion plan of Nalco, estimated to cost about Rs 4,000 crore, has recently received the nod of the Public Investment Board (PIB).

It now awaits the approval of the cabinet committee on economic affairs, which may take up the issue after a new government is installed in the Centre following the elections.