India's National Aluminium Company (NALCO) experienced a significant increase in first-quarter profit, recording a 76% rise, attributed to high aluminium prices. For the three months ending June 30, the state-owned firm reported a consolidated profit of 5.88 billion rupees, roughly equivalent to $70 million.
During the quarter, global prices for base metals, including aluminium, surged, driven by supply concerns and rising demand. This trend helped enhance the selling prices of metals, thereby improving the profit margins for mining companies like NALCO. A notable factor contributing to NALCO's improved profitability was the 35% reduction in the cost of thermal coal and bauxite, essential raw materials in aluminium production. This reduction led to a 24% decrease in the company’s overall expenses.
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Despite the strong profit performance, NALCO's revenue from operations declined by 10%, amounting to 28.56 billion rupees. The decrease was largely due to a 27% drop in revenue from its chemicals division, the company’s second-largest segment. In contrast, the aluminium segment, which accounts for nearly 90% of NALCO's total revenue, saw a modest growth of 4% during the quarter.
Team Lead - Market Research
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