Global recession has ragged net profit of National Aluminium Company Limited (Nalco), India?s largest integrated manufacturer and exporter of alumina and aluminium, down by 22% in 2008-09.
The aluminium major reported a net profit of Rs 1,272.27 crore for 2008-09, compared to Rs 1,631.52 crore posted a year ago. But its sales turnover was higher?at Rs 5531.06 crore compared to Rs 5474.45 crore the previous year?thus indicating that the loss is because of a dip in margins due to the slump in the market.
?The sharp fall in profit is due to abnormally low prices and the higher expenditure incurred due to high prices of coal, fuel oil and an enhanced wage bill after the 6th Pay Commission recommendations,? explained Nalco CMD CR Pradhan.
Hit by the profit loss, Nalco declared a lower dividend?50% for 2008-09 compared to the previous two fiscals. The total dividend payout will cost the company Rs 322.16 crore.
For the January-March quarter of FY09, the company reported a net profit of Rs 83 crore, with a turnover of Rs1,233 crore, compared to a net profit of Rs 416 crore and a turnover of Rs 1560 crore in the same period a year ago.
Nalco has achieved more than 100% capacity utilisation of its alumina refinery and smelter plant. The company?s alumina refinery has exceeded capacity with production of 15.76 lakh tonnes of alumina hydrate. Aluminium production has gone up to 3.61 lakh tonnes,compared to 3.59 lakh tonnes last year, but demand is yet to pick up.