NALCO sets the bar high with 3-fold increase in net profit and 39% revenue boost in Q3 FY25

National Aluminium Company Ltd (NALCO), an Indian public sector company with integrated and diversified operations in mining, metal and power, has reported a remarkable 232.83 per cent year-on-year surge in net profit, reaching INR 1,566.3 crore (USD 180 million) for the third quarter, compared to INR 470.6 crore (USD 54.12 million) in Q3 FY24. This impressive performance was driven by a 39.3 per cent jump in revenue from operations, which climbed to INR 4,662.2 crore against INR 3,347.6 crore in the corresponding period of the previous fiscal.

At the operating level, NALCO's EBITDA (earnings before interest, tax, depreciation, and amortisation) soared by an astounding 200.89 per cent to INR 2,327.6 crore (USD 267.68 million) in the third quarter of this fiscal, up from INR 773.8 crore (USD 89.99 million) in the same period last year. This remarkable expansion in EBITDA margin, from 23.1 per cent to 49.9 per cent, is owed to the company's enhanced operational efficiency and cost management.

In a move to reward shareholders, NALCO's board of directors has approved the payment of a second interim dividend of INR 4 per share (80 per cent on the face value of INR 5 each) on the paid-up equity share capital of INR 918.32 crore (USD 105.61 million) for the financial year 2024-25. The record date has been set as Friday, 14th February, and the dividend will be paid on or before 10th March.

This latest dividend announcement follows two previous payouts in 2024 - INR 4 in November and INR 2 each in September and February. In the previous fiscal year, 2023, the company had distributed dividends thrice - INR 1 each in September and November, and INR 2.5 in March.

The robust financial performance and the generous dividend payouts have been well received by the market. NALCO's share price, which closed at INR 190.95 on the BSE, down by 4.83 per cent on the day, had gained almost 4 per cent in morning trades on Tuesday following the announcement of the Q3 results.

Commenting on the company's success, NALCO's Chairman and Managing Director, Brijendra Pratap Singh, highlighted that improvements in process efficiency, reduction in input costs, and enhancing product quality have been crucial factors in the company's accomplishments. He attributed the current quarter's results primarily to better sales realisation in Alumina & Metal, increased Alumina sales volume, utilisation of captive coal, and lower raw material costs.

As a Navratna company established in 1981, NALCO continues to play a vital role in India's aluminium industry. With the Indian government owning a 51.28 per cent stake in the company, NALCO operates its captive Panchpatmali Bauxite Mines, a pit head alumina refinery at Damanjodi, and an aluminium smelter and captive power plant at Angul, all located in the state of Odisha.