National Aluminium Co Ltd (NALCO) rose over 9% today morning to Rs.73.55, with volumes showing a surge of over 2.5 times. Its 52-week high is at Rs.97.65.
The stock price has surged on the back of its very good performance for Q1FY19. This is a Navratna PSU registered a net profit of Rs.687 crore, a jump of 167% (QoQ) and up 43% (YoY).
Operating Profit of NALCO increased more than two-fold, registering Rs 891 crore v/s Rs 363 crore in Q4FY19 . EBIDTA margin has risen from 19% to 36% (QoQ) despite increase in input cost by 15 to 20 %.
Interestingly, the net profit figure of Rs 687 crore in current Q1 has surpassed the whole net profit of Rs 642 crore in FY14. This significant growth in profit has mainly come from the Alumina revenue segment, Damanjodi, which has achieved the distinction of being the lowest cost producer of Alumina in the world. Apart from the cost focus, it is the pre and post sales service of NALCO, coupled with its quality which has helped the Company in commanding a· high premium in international market.
During the quarter, bauxite production was 18.59 lakh tonnes, as against the 18.81 tonnes produced during corresponding period of previous year. Alumina hydrate production was 5.83 lakh tonnes, which is 10.74% higher as compared to 5.26 lakh tonnes produced during the corresponding period of last fiscal. During the quarter, the company produced 1.10 lakh tonnes of aluminium, which is 8.85% higher than 1.01 lakh tonnes produced in the 1st quarter of previous financial year. The net power generated during the quarter was 1682 million units. This has gone up by 5.14%, against 1599 million units generated in the corresponding period of last year. Besides, in the field of renewable energy, the company has generated 104 million units of wind power during these three months. The total alumina sale during the quarter was 3.20 lakh tonnes and aluminium sale was 1.05 lakh tonnes.