As expected, Nalco has delivered on the expectations this quarter. Margins have expanded to nearly 14 percent. Profit has nearly doubled despite lower other income.
Aluminium maker National Aluminum Company (NALCO) on Saturday reported a nearly two-fold rise in net profit at Rs 234.63 crore for the quarter ended September 30. Total income rose to Rs 2,535.73 crore in July-September this fiscal from Rs 1,982.92 crore during the same period last year.
Giving more details on the numbers and the outlook going forward TK Chand, CMD, Nalco said the good profit numbers were because of more sales in both alumina and aluminium. The company sold 1.2 lakh tonnes more of alumina. Volume growth for the company too has been good, he added.
The company is targeting alumina sales of 1.2 million tonne for FY18, said Chand.
According to him, higher bauxite and caustic soda prices will keep alumina prices elevated and expect them to top out between USD 500-550 per tonne.
Although the prices of aluminium have a softened a bit now, they are expected to hover in the range of USD 2050-2150 per tonne, said Chand.
Chand is also confident that Q3FY18 would be a stronger quarter for alumina business.
When asked what the company planned to do with the Rs 2700 crore cash on the books, he said around Rs 2400 crore would be used for modernization and expansions.For full interview, watch video