At a time when 70 per cent aluminium companies world over have reported loss, as also reduced production, and the aluminium industry is reeling under heavy pressure due to a sluggish international market, the National Aluminium Company limited (Nalco) has remained profitable by successfully handling the market downturn by becoming the lowest-cost producer of alumina in the world and focusing on increased bauxite mining and alumina refining, besides effecting several cost reduction measures, particularly in metal production.
According to the audited financial results for 2015-16, taken on record by the Board of Directors at a meeting held here on Saturday, during the 4th quarter the Nalco has registered a net profit of Rs208 crore compared to Rs133 crore in the preceding quarter and Rs355 crore during the corresponding quarter of the previous fiscal.
Overall, during 2015-16, the company has posted a net profit of Rs731 crore compared to Rs1,322 crore achieved during the previous year. The gross turnover of the company during 2015-16 has been Rs7,157 crore.
The Nalco Board recommended a final dividend of 15 per cent amounting to Rs193.29 crore. Earlier, the company had declared an interim dividend of 25 per cent amounting to Rs322.16 crore on the paid-up equity share capital of Rs1,288.62 crore. The total dividend for 2015-16 works out to Rs515.45 crore, and including dividend distribution tax (DDT) it comes to Rs620 crore.
The aluminium major has registered an all-time high production of 63,40,142 tonne of bauxite in 2015-16 and 19,53,000 tonne of alumina. The company also produced 3, 72,183 tonne of metal. During the year, power generation was up by 14 per cent at 5,841 million units compared to previous year.
In a significant development, during the Prime Minister’s recent visit to Iran, Nalco CMD Dr Tapan Kumar Chand signed an MoU with the Vice-Chairman of Planning Board of Iran to explore the possibility of setting up an aluminium smelter in Iran.