Shares of this midcap company jumped 5 percent in Wednesday’s trading session after announcing higher-ever aluminium and bauxite production in FY23-24. The shares have delivered a multibagger return of 118 percent in one year to its shareholders.
With a market capitalization of Rs. 32,058 crores, the shares of National Aluminium Company Ltd started Wednesday’s trading session on a flatter note at Rs. 166.80 compared to its previous close of 166.20. During the training session, the shares hit a high of Rs. 175.65, gaining 5 percent, also recorded as the company’s fresh 52-week high and are currently trading at Rs. 174 apiece.
Such a bullish movement in the share price was observed after the company in an exchange filing announced that they had achieved remarkable milestones in the fiscal year 2023-24, by recording the highest-ever production figures, including cast Metal production of 4,63,428 Metric Tonnes, Bauxite Excavation of 76,00,230 Metric Tonnes, and Metal Sale of 4,70,108 Metric Tonnes, surpassing all previous records.
Additionally, the state-owned firm expanded its product range by introducing a new Aluminium Alloy Ingot (AL59) during the financial year.
Coming onto the company’s financial statements, the revenue increased by 10 percent from Rs. 3,043 crores during the September quarter to Rs. 3,347 crores in the December quarter. In addition, the net profits magnified by 152 percent from Rs. 187 crores to Rs. 471 crores during the same period.
NALCO achieved full capacity Aluminium production of 4.6 lakh tonne, with all 960 POTs in operation in its Aluminium Smelter for the 2nd consecutive year in FY 2022-23.
Furthermore, the company has a 68.25 lakh TPA Bauxite Mine and 21 lakh TPA (normative capacity) Alumina Refinery located at Damanjodi in the Koraput district of Odisha and a 4.60 lakh TPA Aluminium Smelter and 1200MW Captive Power Plant located at Angul, Odisha.
Moreover, the company has installed 198 MW Wind Power Plants at various locations in India and 850 kWp rooftop Solar Power Plants at its premises to join hands for carbon neutrality.
Due to increasing expenditure, the profitability metrics of the company declined with the return on equity (RoE) decreasing from 23.51 percent during FY 21-22 to 11.66 percent in FY 22-23, and, the return on capital employed (RoCE) showed a downward movement from 28.05 percent to 13.24 percent during the same timeframe. Furthermore, the net profit margin decreased from 20.88 percent during FY 21-22 to 13.71 percent during FY 22-23.
Headquartered in Bhubaneswar, National Aluminium Company was incorporated in 1981. It is an Indian public sector company with integrated mining, metal, and power operations. It is one of India’s largest integrated bauxite-alumina-aluminium-power complexes, involved in activities such as bauxite mining, alumina refining, aluminium smelting, power generation, rail, and port operations.
Written By Vaibhav Patil
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