NALCO's net profit jumps by 52 percent to Rs 2381 crore

National Aluminium Company Limited (NALCO), the flagship PSU of the Ministry of Mines and India's largest integrated manufacturer and exporter of alumina and aluminium, has reported a 52 percent jump in net profit to Rs 2381 crore during 2006-07 from Rs 1562 crore achieved in the previous year.

According to audited financial results taken on record by the company's Board in its meeting held in Bhubaneswar on Tuesday, the company declared that it has also achieved the highest-ever net sales of Rs 5940 crore, recording an increase of 22 percent over the previous year's figure of Rs 4888 crore.

The company's export earnings also increased by 12 percent to Rs 2585 crore from Rs 2306 crore in the previous year.

Similarly, the gross margin jumped by 40 percent to Rs 3942 crore from Rs 2811 crore. ROCE (return on capital employed) increased to 32 percent from 25 percent in the previous year. The EPS (earning per share) increased to Rs 37 from Rs 24 in the previous year.

The company also achieved the highest-ever metal sale of 3,56,616 tonnes in 2006-07. This represents an increase of 3.4 percent against the MoU target of 3,45,000 tonnes. The previous best sale was 3,53,841 tonnes in the year 2005-06.

The aluminium smelter of the company also achieved 104 percent capacity utilisation during the year. The net margins have increased from 32 percent last year to 40 percent this year.

Similarly, the company's 960 MW captive power plant, located at Angul near the smelter plant, achieved the highest-ever power generation of 5968 million units, the previous best being 5679 million units in 2005-06.

Besides, this two decade old coal-fired power plant achieved the highest-ever plant load factor (PLF) of 79.3 percent, surpassing the decade-old record of 78.85 percent PLF achieved in 1993-94.

Nalco has been pursuing the plans of continuous expansion of production capacity in order to strengthen its business and increase market share. Soon after completion of the first phase expansion, the company has now launched its second phase expansion involving a fresh investment of Rs 5100 crore.

After the expansion, the present capacity of bauxite mines will go up from 48 lakh tonnes to 63 lakh tonnes, alumina refinery from 15.75 lakh tonnes to 21 lakh tonnes, aluminium smelter from 3.45 lakh tonnes to 4.60 lakh tonnes and captive power plant from 960 MW to 1200 MW.

As part of business development strategy, NALCO is also actively exploring the possibilities of setting up joint venture projects abroad for making aluminium, based on its surplus alumina to the tune of 1.2 million tonnes, which is expected to be available once the second phase expansion is complete.