National Aluminium Company Ltd (Nalco), currently reeling under acute coal shortage affecting the operation of its aluminium smelter and alumina refinery, has reported 17.6 per cent increase in the net profit in the first quarter.
Due to short supply of coal, the company had cut down production of aluminium by about 30 per cent during the third week of June while a similar crisis now has forced it to reduce alumina output by more than 50 per cent. If the situation continues for a longer period, sources said, its impact on the company’s financial may be felt in the next quarter.
Meanwhile, riding on robust price of aluminium and alumina in the international market, the net profit of the company has increased to Rs 525.33 crore in the quarter ending June 30, compared to Rs 446.66 crore in the corresponding period of the previous fiscal. The Board of Directors of the company considered the first quarter results here today.
The company achieved a turnover of Rs 1606.41 crore in the first three months of the current fiscal, compared to Rs 1287.12 crore during the same period in 2007-08, an increase of 24.8 per cent.
On the sales front, alumina sales increased by 6.56 per cent to 2,21,405 tonne compared to 2,07,765 tonne in the corresponding period a year ago. Similarly, the aluminium sale increased by 10.86 per cent to 75,858 tonne from 84,103 tonne.
It may be noted the State Level Single Window Clearance Authority (SLSWCA) of the Orissa government recently cleared Nalco's Rs 16, 345-crore investment proposal for setting up a 0.5 million tonne per annum (mtpa) smelter and 1260-Mw captive power plant at Brajarajnagar in Jharsuguda district.The proposal now awaits the nod of the High Level Clearance Authority (HLCA) headed by the chief minister.
Meanwhile, Rs 5000 crore 2nd phase expansion project of the company is nearing completion. It has also chalked out plans to invest around Rs 40, 000 crore in various greenfield projects in the country and abroad, including Indonesia, South Africa and Iran.
In the early part of this year, Nalco signed a memorandum of understanding (MoU) with the government of Indonesia, to set up a 5 lakh tonne smelter and a 1250 Mw captive power plant (CPP) in that country.
It plans to invest about Rs 14,000 crore in this greenfield project, for which Tanjung Enim and Tanjung Api-Api are the probable sites. The consultants have favoured Tanjung Api-Api based on their preliminary site-survey and studies.
The company is also pushing ahead with its plan to open a new bauxite mine in Andhra Pradesh and set up an alumina refinery there.
