NALCO’s net profit surges 229% in H1
Navratna PSU, NALCO which comes under the ministry of mines recently declared results for the first half of FY 2018-19.
It announced strong results by posting a turnover of Rs.5952 crore in the first half of FY 2018-19, i.e. 42% growth over H1 of FY 2017-18.
The net profit of the company has gone up from Rs.364 crore in H1 of the previous fiscal (2017-18) to Rs.1197 crore during the first half of 2018-19, registering a growth of 229% said an official release from the company.
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, registering Rs.1624 crore in 2018-19 compared to Rs.334 crore in H1 of FY 2017-18. EBITDA margin of the company during the period has doubled from 17 % to 34%.
According to the reviewed financial results for the 2nd quarter and first half of the financial year 2018-19 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.
These results are 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 a year and a half ago. This has also helped the company in doubling its net profit during the last financial year 2017-18. In Q1 of 2018-19, NALCO registered a net profit of Rs.687 crore over Rs. 129 crore in Q1 2017-18. The performance of NALCO continued to be upbeat in Q2 of this fiscal. The company stated in the release that under the New Business Model initiated by its CMD Dr TK Chand, the focus has been on reducing the specific consumption, cost reduction, production augmentation, strategic marketing in spot market etc.