Lower international prices of products have affected the performance of the company and coal linkage issues, led to lower production. Though Bauxite production during  Q1FY14 increased to 14.63 lakh tones, up 28% (YoY), aluminium output dropped 17% at 0.85 lakh tones and it sold also 17% lower. Alumina production rise was marginal at 4.82 lakh tones, up 1%. But captive power generation was down 18% at 1,327 million units. Sales and EBIT of all these segments have reported a sharp fall. Topline of chemicals was down 2.5% and EBIT was down 26%. Aluminium topline was down 18% and EBIT reported a loss of Rs.79 crore v/s loss of Rs.19 crore (YoY).  Electricity, which contributed 20% to the total revenue, showed a 18% drop in its topline and EBIt more than halved, down 57%.

The company, a Navratna PSU, is operating at 25% lower capacity and it is expected to remain around the same levels due to lower realizations and lower coal supply. During the quarter, 198 pots in the smelter plant were taken out of circuit due to constraints in coal supply. Over 36% of its total operating cost is on power and fuel. The company is unable to get sufficient coal linkages from the Mahanadi Coal Field and this has bloated the cost as it has to depend on high cost e-auction and imported coal. Till its Utkal coal block is not commissioned, its fuel costs will be high. It has till date received stage I forest clearance and commissioning of Utkal is what will boost profitability. The company partially commissioned 46.7 MW wind power plant at Jaisalmer, Rajasthan. The government holds 81.06% stake in the company.