Nalco’s Bottom Line Sound Despite Difficulties in Global Market: Chand

Nalco’s Bottom Line Sound Despite Difficulties in Global Market: Chand
Nalco Jagaranath Temple Angul. Source: Wikimedia

Dr. Tapan Kumar Chand, chief of India’s state-owned aluminium firm National Aluminium Company Limited (Nalco), said his firm is financially sound despite the amount of struggling smelters in the industry.

“Nalco has remained profitable all through by successfully handling the market downturn, by maximising bauxite mining and alumina refining, adding new pots and augmenting production, besides effecting several cost reduction measures, particularly in raw material and energy consumption,” Chand said during remarks delivered at an Indian Independence Day gathering.

Chand went on to tell the assembled listeners that Wood Mackenzie judged Nalco to be the world’s lowest-cost producer of alumina, helping it to turn in a gross turnover of US$1.07 billion and a net profit of US$109 million in FY2016.

During 2015-16, Nalco has increased dividend payment to shareholders from 35 per cent to 40 per cent. Its share price in the market has gone up from Rs 36.55 [US$0.55] in July 2015 to Rs 47.50 [US$0.71],” Chanda said, subsequently pointing out that Nalco’s market capitalization increased from US$1.3 billion to US$1.8 billion.

Chand said that in the current fiscal year (which began April 1) through the end of July, Nalco has turned out 2,318,371 metric tons of bauxite ore, which is up over 32% year-on-year, and 649,200 metric tons of alumina hydrate, up almost 13% year-on-year.

“There is a saying, ‘Fortune favours the Brave’. This is apt in case of Nalco facing the market blizzard bravely and coming out successful. This could not have been possible without a concerted effort of all employees,” he said.

He continued by saying that Nalco has added US$11.9 billion of captive resources, including over 75 million metric tons of bauxite ore.

“If we tap these resources in time, for the next five decades, we shall have no resource crunch for our core functions,” Chand said. He then described the memorandum of understanding Nalco signed with the Ministry of Mines last month establishing higher output targets for the present fiscal year.

“A new business model has been introduced to enable us strengthen the company’s business by leveraging its core competency in mining, metals and energy sectors, through modernisation, Greenfield and Brownfield expansions, upstream and downstream integration,” Chand concluded.