Earnings Review
NALCO PAT rises on high sales, but fails to beat Street view
This story was originally published at 17:18 IST on 7 August 2025
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--NALCO Apr-Jun aluminium revenue INR 27.08 bln vs INR 25.35 bln year ago
--NALCO Apr-Jun chemicals revenue INR 16.28 bln vs INR 8.52 bln year ago
--NALCO to pay INR 2.50 per share final dividend
--NALCO Apr-Jun revenue INR 38.07 bln vs INR 28.56 bln year ago
--Analysts saw NALCO Apr-Jun net profit at INR 11.09 bln
--NALCO Apr-Jun net profit INR 10.64 bln vs INR 6.01 bln
By Sunil Raghu
AHMEDABAD – National Aluminium Co. Ltd. failed to beat analysts' expectations on its net profit for the June quarter despite a strong revenue growth. A moderate rise in overall costs, including raw material prices and power and fuel costs, as well as higher taxes capped the company's bottom line growth.
The government-owned aluminium company reported a 77% on-year rise in net profit to INR 10.64 billion, falling short of the Street estimates of INR 11.09 billion. This is the eighth straight quarter wherein NALCO has seen on-year rise in its net profit. The pace of rise in net profit growth was, however, the slowest in the last four quarters. The rise in net profit was aided by a 33.3% on-year increase in revenue from operations to INR 38.07 billion, which is its lowest growth in last three quarters. The reported revenue was close to the analysts' estimate of top line at INR 38.12 billion.
The revenue growth of NALCO's chemicals segment, which includes calcined alumina, alumina hydrate, and other related products, was the highest between its two segments The revenue in chemicals segment nearly doubled on year to INR 16.28 billion, from INR 8.52 billion in June quarter last year. The chemicals segment contributed 38% to the total revenue from operations. Revenue in the aluminium segment, which includes aluminium ingots, wire rods, billets, strips, rolled and other related products, rose 6.8% on year to INR 27.08 billion, contributing 62% to total revenue from operations.
The operating costs of the company in the June quarter increased 19.1% on year, with cost of raw materials consumed rising 13.3% on year to INR 5.52 billion and a moderate increase of 6% in costs of power and fuel consumed to INR 7.28 billion. The company's tax outgo in the June quarter jumped 69.3% on year to INR 3.65 billion.
The company's board recommended a final dividend of INR 2.5 per share for 2024-25 (Apr-Mar). It will be paid within 30 days from the date of declaration, the company filing said.
On Thursday, shares of NALCO ended 0.6% up at INR 189.76 on the National Stock Exchange of India. End
Edited by Tanima Banerjee
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