NALCO puts up good Q2 show, H1 net profit jumps three-fold

New Delhi: National Aluminium Company Limited (NALCO), a Navratna PSU under Ministry of Mines repeated its strong performance by posting a turnover of Rs 5,952 crore in the first half of FY 2018-19, registering a 42 percent growth over the last fiscal. The net profit of the company went up from Rs 364 crore in H1 of the previous fiscal (2017-18) to Rs 1,197 crore during the first half of 2018-19, registering a growth of 229 percent.

Earnings before interest, tax, depreciation and amortisation (EBITDA) margin of the company during the period has doubled from 17 percent to 34 percent.

While the net profit of NALCO in the H1 of current fiscal has increased around three-fold, operating profit of the company has increased more than four-fold at Rs 1,624 crore in 2018-19, as compared to Rs 334 crore in H1 of FY 2017-18. Earnings before interest, tax, depreciation and amortisation (EBITDA) margin of the company during the period has doubled from 17 percent to 34 percent.

According to the reviewed financial results for the second quarter and the first half of the current financial year taken on record by the Board of Directors in the meeting held at Bhubaneswar on November 13, NALCO has achieved a net profit of Rs 510 crore, as against Rs 235 crore in the corresponding quarter of previous fiscal, registering around two-fold growth.

Despite high volatility in alumina and aluminium markets due to US trade sanctions, NALCO has been able to significantly improve its performance due to the New Business Model introduced by the company one and a half year back, which has helped it in doubling its net profit during the last financial year 2017-18.

Under the new business model, the focus has been on reducing the specific consumption, cost reduction, production augmentation, strategic marketing in spot market etc.