NALCO Shares Zooms Over 4% After Release of Q2 FY25 Results

Impressive Surge in Net Profit

National Aluminium Company Limited (NALCO), a Navratna CPSE under the Ministry of Mines, Government of India, has posted a remarkable 415% increase in its net profit for the quarter ended September 2024. The company’s net profit surged to ₹1,062 crore, compared to ₹206 crore in the same period last year, reflecting a significant improvement in financial performance.

Strong Growth in Total Income

NALCO’s total income from operations for Q2 FY 2024-25 reached ₹4,001 crore, marking a 32% increase over ₹3,044 crore reported in Q2 of FY 2023-24. This growth reflects the company’s robust operational performance and positive market dynamics.

Record-Breaking Performance in H1 FY 2024-25

The company also delivered an outstanding performance in the first half (H1) of FY 2024-25, reporting a 199% growth in net profit. NALCO’s profit for the first six months soared to ₹1,663 crore, compared to ₹556 crore in H1 of FY 2023-24. This significant growth highlights the company’s strong fundamentals and ability to capitalise on favourable market conditions.

Highest-Ever Domestic Metal Sales in H1

NALCO achieved its best-ever performance in domestic metal sales during the first half of FY 2024-25. The company recorded a cumulative total of 2,21,966 metric tons (MT) of domestic metal sales, further cementing its position as a leader in the aluminium sector.

Interim Dividend Announcement

In light of its strong performance, NALCO has declared an interim dividend of ₹4 per equity share (80% on the face value of ₹5 each). The total dividend payout amounts to ₹734.65 crore for FY 2024-25, reflecting the company’s commitment to rewarding its shareholders.

Key Drivers of Growth

NALCO’s Q2 results were primarily driven by a combination of enhanced operational efficiency, higher aluminium prices, and a favourable domestic business environment. These factors helped the company to sustain its growth trajectory and deliver exceptional results.

On November 14, 2024, NALCO shares opened at ₹229.80 and reached the day high of ₹230.00 at 09:30 AM, reflecting a rise of 4.28% from the previous close.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.