India’s state-owned National Aluminium Company (NALCO) reported a 16.6% fall in
fourth-quarter profit on Thursday, as higher costs and weaker
alumina prices weighed on earnings.
* The company is India’s largest producer of alumina, or
aluminium oxide, used in the production of aluminium and as a
catalyst in petrochemical refining.
* Net profit fell to ₹1,722 crores
in the quarter ended March 31, from ₹2,067 crore a year
earlier.
* Revenue from operations declined 5% to ₹5,013 crore
* Expenses rose 10% to ₹2,898 crore, partly due to
higher raw material and operating costs.
* Analysts expected weaker alumina prices to limit margins
at the company’s alumina unit, despite support from firm
aluminium prices, which rose on global supply disruptions.
* Chinese domestic alumina prices fell about 5.5%
quarter-on-quarter in the March quarter, as escalating
U.S.-Israel tensions with Iran since late February weighed on
demand from China, the world’s largest consumer, according to
S&P Global.
* Revenue from the firm’s second-biggest segment, chemicals,
fell nearly 38%.
* Rival Vedanta reported a 92.3% rise in profit on
Wednesday, while Hindalco Industries is yet to report.