Nalco Q3 profit crashes 43% to Rs 1.1bn
Lower realizations and higher wage bills hit profits
National Aluminium Company Ltd. (Nalco) has recorded drop of 43% in net profits for the quarter ended 31st December 2001 to Rs 1.1 bn as compared to Rs 1.92 bn during the corresponding period last year. Net sales were marginally lower at Rs 5.93 bn as compared to Rs 6.07bn last year. The country`s second largest aluminium company attributed the decline to the sharp fall in prices realizations. Average metal prices on the LME fell to $1400 per tonne from $1518 per tonne. Since Nalco exports half of its produce, average price realizations were hit badly. The company also incurred an additional wage liability of Rs 1.56bn on account of a revised wage agreement. For the nine-month period, net profit showed a drop of 45% from Rs 4.95 bn to last year to Rs 2.7 bn.
