The National Aluminium Company (Nalco) has exceeded its annual production targets for 1996-97 and expects to notch up a net profit of over Rs 500 crore for the year.
The aluminium output of Nalco, the largest producer of the metal in the country, reached a new high of 203,650 tonnes in 1996-97 against 192,228 tonnes in the previous year. Similarly, the company sold a record quantity of 145,520 tonnes of metal in the domestic market and exported 60,357 tonnes in the just-concluded financial year as against 143,092 tonnes and 49,128 tonnes respectively in the previous year. The private sector company also ended the year with lowest ever inventory of 700 tonnes which is equivalent to less than two days output.
Interestingly, the company has managed to record highest ever production and sale of metal despite a slump in the international prices in the first three quarters of last fiscal when prices in the London Metal Exchange (LME) slid to below $1,300 per tonne. However, the prices have since spiralled up to hover around $1,700 towards the end of the year.
The average LME prices in 1996-97 ware lower than the previous years, putting pressure on the margins, said a company source.
He, however, said that the company has sought to minimise effect of lower margins on the total profit in the year under consideration through higher production and sale.
As a result the net profit of the company is expected to be a little over Rs 500 crore after providing for the minimum alternate tax compared to Rs 535 crore achieved last year.
Apart from metal, the company has crossed the installed capacity of bauxite mining by producing 2,558,000 tonnes of raw material against the previous best of 2,435,000 tonnes in 1993-94.
The company has also exceeded its refinery capacity of 800,000 tonnes by producing 840,000 tonnes of alumina. Export of 465,000 tonnes of alumina during the year is also another new high for the company as against the previous best of 448,000 tonnes achieved in 1989-90. Similarly, the 720 mw captive power plant generated a record 4,187 million units during 1996-97 against 4,147 million units in the previous year.
Meanwhile, in a recent memorandum of understanding (MoU) signed with the Union mines ministry, Nalco has set itself a target of 218,000 tonnes of metal, 800,000 tonnes of alumina and 2,400,000 tonnes of bauxite production during 1997-98.
At present, the company is going ahead with it Rs 1,665 crore expansion project which envisages to double the bauxite mining and alumina refinery capacity to 4800,000 tonnes and 1,575,000 tonnes respectively by the year 2002.
