More Stories

Informist, Wednesday, May 21, 2025

By Rajesh Gajra

NEW DELHI – National Aluminium Co. Ltd. beat analysts' expectations on its top line and net profit for the March quarter on the back of a strong revenue growth in both it key segments of aluminium and alumina. A sharp fall in raw material prices and moderate increase in power and fuel costs also helped the company's bottom line growth.

The government-owned steel company reported a 2.05 times on-year rise in net profit to INR 20.78 billion, beating Street view of INR 14.26 billion by a wide margin. Contributing to this strong bottom line growth was a 47% on-year increase in revenue from operations to INR 52.68 billion, which was the highest growth in 11 quarters. The reported revenue was also above analysts' estimate of INR 47.15 billion.

The revenue growth of NALCO's chemicals segment, which includes calcined alumina, alumina hydrate, and other related products, was the highest among the two segments of the company. The revenue in chemicals segment jumped up 60% on year to INR 25.37 billion, contributing 44% to total revenue from operations. Revenue in the aluminium segment, which includes aluminium ingots, wire rods, billets, strips, rolled and other related products, rose 33% on year to INR 32.50 billion, contributing 56% to total revenue from operations.

The operating costs of the company was largely subdued as cost of raw materials consumed dropped 15% on year to INR 5.79 billion and a moderate increase of 15% in costs of power and fuel consumed to INR 8.43 billion. This led to the earnings before interest and tax of the company jumping up 2.8 times to INR 27.64 billion.

The chemicals segment EBIT rose sharply by 2.5 times on year to INR 13.32 billion while the EBIT of the aluminium segment jumped 3.1 times to INR 14.32 billion. "Enhancing efficiency, cost optimisation and unwavering commitment of employees have played a key role in enabling NALCO to maintain competitive pricing in a dynamic market environment," NALCO's Chairman and Managing Director Brijendra Singh said in an earnings press release.

The March quarter saw aluminium prices firm up and demand steadily increase, according to the company. The growth trajectory was also supported by strong alumina prices and improvement in efficiency, the company said in the press release.

In the full year 2024-25 (Apr-Mar), NALCO's net profit rose 2.6 times to INR 53.25 billion on the back of a 28% rise in revenue from operations to INR 167.88 billion. The company said it achieved highest-ever bauxite excavation of 7.65 million tonnes, and highest-ever domestic metals sale of 455,000 tonnes in FY25.

On Wednesday, shares of NALCO ended 1.5% up at INR 181.75 on the National Stock Exchange of India.  End

Edited by Akul Nishant Akhoury

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel +91 (11) 4220-1000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2025. All rights reserved.