Nalco FY18 net profit more than doubles to Rs1,342 as mining costs hit record lows
29 May 2018
National Aluminium Company Limited (Nalco), has reported a more than doubling of its net profit for fiscal 2017-18 to Rs1,342 crore against Rs669 crore in the previous fiscal.
Nalco, a Navratna PSU under the ministry of mines, attributed the rise in profits to its success in achieving a global benchmark in low-cost bauxite mining and alumina making.
During the fourth quarter of the financial year 2017-18, Nalco made a net profit of Rs257.06 crore. Net sales turnover for the year stood at Rs9,377 crore (highest ever since inception) registering a growth of 26 per cent over last year.
During the year, Nalco was the-third highest net foreign exchange earning central public sector enterprise in the country. Export earnings, which recorded a growth of 12 per cent at Rs4,076 crore, was also the highest ever since inception
“Year 2017-18 has been a very rewarding year for Nalco on all fronts. We are looking beyond earning just profits... While focusing on the present, we are ensuring we don’t lose sight of what the future holds. We are introducing a game changing business model that will bring additional Rs935 crore net profit to the company. The model provides for focusing operation of Utkal-D, end of second quarter 2019, commissioning of 1 million tonne of alumina refinery, setting up of wire rod mill 3, bringing into stream caustic soda plant, CT pitch plant, etc,” Tapan Kumar Chand, CMD, Nalco, said.
Besides promoting employment through initiatives like the Angul Aluminium Park, he said Nalco is planning a tie-up with Almex of USA to set up high end value products. Nalco will also be promote micro and small industries in downstream areas through a cash-less model of providing aluminium ingots and taking back finished products for marketing by Nalco.
“Such hand holding by Nalco is bound to make these micro and small industries viable and thereby creating substantial number of employment and warming up business environment in Odisha,” he said.
While congratulating Nalco Collective for the stellar performance, Chand also mentioned the new projects in the pipeline and the company’s growth plans.
Nalco has been rated as the lowest-cost producer of alumina in the world consecutively for the 2 years, ie, 2016 & 2017 as per report of Wood Mackenzie.
Nalco's Panchpatmali bauxite mines are rated as the second lowest-cost producer in the World in 2017 according to the Wood Mackenzie report . It is aiming to become the lowest-cost producer in FY 2018-19.
Bauxite mines (north-central block of Panchpatmali Mines) achieved 100 per cent capacity utilisation with transportation (production) of 68.25 lakh tonnes for second successive year.
Bauxite transportation (production) from new mine in South block of Panchpatmali Mines started in fourth quarter of FY 2017-18. Transportation from South block is 2 lakh tonnes and combined transportation of both the mines is 70.25 lakh tonnes, highest ever since inception.
Nalco’s alumina refinery achieved 100 per cent normative capacity (ie, 21 lakh tonnes) in successive years with production of 21.06 lakh tonnes alumina hydrate. It also commissioned the fifth turbo generator of steam generation plant.
Aluminium smelter production, which has been consistently increasing over the last 5 years, achieved highest cast metal production of 4.26 lakh tonnes (in last 5 years), recording a growth of 9.8 per cent year-on-year.
CPP achieved ‘Net Power Generation’ of 6,547 MU, registering a growth of 7.9 % over previous year.
Nalco set up four wind power units at different location of the country, which together generated 252 MU against 206 MU last year, recording a growth of 22 per cent.