BENGALURU, Feb 10 (Reuters) - Indian aluminium maker and
seller National Aluminium Co Ltd (NALCO) on Friday
reported a 69% slump in quarterly profit on the back of lower
demand and high costs.
The state-run company's consolidated profit fell to 2.56
billion Indian rupees ($31 million) in the quarter ended Dec. 31
from 8.31 billion rupees a year ago.
High global coking coal prices have dented profits for many
Indian companies during the quarter, while analysts had said
soaring caustic soda prices too would weigh on the aluminium
maker's profits.
The cost of raw materials surged by 70.5% year-on-year
basis, while the cost of power and fuel consumed rose 26%.
Revenue from operations slid by 12.8% to 32.9 bln rupees.
"Lower sales volume of alumina during the quarter, higher
input costs coupled with global challenging business scenario
and volatility has affected the profit margins," the company
said.
On Thursday, rival Hindalco Industries also
reported a 63% drop in quarterly profit due to high costs and
lower aluminium prices.
Benchmark London Metal Exchange aluminium has fallen
off the record highs hit in early 2022, sliding over 15% so far
into this year due to factors such as the Russia-Ukraine
conflict, recessionary fears and China's zero-COVID policy.
"With firming up of aluminium prices globally and
higher productions volumes, we are sure that it will certainly
add to the profit margins in the coming quarters," NALCO said.
($1 = 82.4780 Indian rupees)
(Reporting by Nallur Sethuraman and Yagnoseni Das in Bengaluru;
Editing by Maju Samuel)
Messaging: nallur.sethuraman.thomsonreuters.com@reuters.net))
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