NALCO registers nearly 3.5-fold increase in net profit to Rs831cr during Q3FY22; Stock dips 2%

8 Feb 2022 , 09:55 AM

National Aluminium Company Limited (NALCO), one of India’s largest integrated manufacturer and exporter of alumina and aluminium, has surpassed several milestones in its journey of business excellence in Q3 of financial year 2021-22.

The Company registered a nearly 3.5-fold increase in Net profit to clock Rs831cr in Q3FY22, a jump of 246% compared to Rs240cre in Q3FY21. The company has also broken the highest profit figure clocked since inception for the first nine-month period, with a Net profit of Rs1,926cr for the period ending Dec 2021, a 5-fold increase and a substantial jump of 429% over 364cr posted in the corresponding period of the previous fiscal.

The total revenue from operations in Q3FY22 witnessed substantial growth, clocking Rs3,773cr compared to Rs2,379cr in Q3FY21. The results of the Navratna CPSE, under the Ministry of Mines, Govt. of India, were driven by sustained supply of raw material, optimized production, strategic sourcing of power, particularly during the period of coal crisis, better realization and effective capacity utilization of its operational units.

NALCO also declared second interim dividend of Rs3 per equity share (60% of face value of Rs5 per share) for the FY22. The first interim dividend of Rs2 per equity share was paid in Dec 2021. The total interim dividend paid during the current financial year works out to 100% of the paid up equity share capital.

At around 9.58 am, National Aluminium Company Ltd was trading at Rs116.35 per share down by Rs2.65 or 2.23% from its previous closing of Rs119 per share on the BSE.

“Despite the challenging circumstances due to Covid pandemic, the Company has displayed exemplary resilience to register solid growth on Sales and Production front,” company said in a filing on Monday.

During the nine months of current fiscal, the Company achieved production of 55.03 lakh tonne Bauxite compared to 53 .48 lakh tonne during corresponding period of FY21, and Alumina Hydrate of 15.41 lakh tonnes, against 15.07 lakh tonnes of previous fiscal. Aluminium production also registered healthy growth with full capacity utilization of the Smelter plant at 3.43 lakh tonnes produced in the first nine month ending Dec 2021, against 3 .06 lakh tonnes of FY21.

NALCO Collective achieved an important milestone by bringing 960 pots in Smelter Complex into simultaneous operation, achieving 100% capacity utilization for the first time in history of the Company during a critical period defying all odds & challenges.

Sridhar Patra, CMD, NALCO, attributed the success to the exemplary contributions of the employees in these trying times, and lauded them for focusing on production and productivity. “The robust growth and all round performance on production and financial parameters is testimony to the hard work and commitment of the employees and strategic focus on Production, People, and Projects. The strategic growth-oriented roadmap and the relentless quest displayed by the employees to travel the extra mile in these challenging times is praiseworthy,” Patra said.