Underlining the turmoil that the Aluminum market globally is going through the National Aluminum Company ltd (Nalco) has posted a net profit of just `593 crore which is down by over 30 per cent from the last fiscal’s figure of `850 crore even though sales has grown from `6,500 crore to `6,809 crore. The directors have recommended a dividend of 25 per cent, which is higher than the 20 per cent issued last fiscal.
In the Nalco’s 32nd Annual General Meeting here on Friday, company CMD Ansuman Das attributed the drop in the profit to higher input costs and a very volatile market.
The Nalco produced higher record amount of alumina hydrate but took a conscious decision to produce less amount of aluminum from its smelter at Angul due to weak market conditions.
However, the company has a net worth of `11,933 crore as of March, 2013 and has no debt in the balance sheet with a cash reserve of about `4,957 crore. It means that the company has a sound financial position to raise resources to finance its ambitious growth projects on hand.
Das, as he stated at a Press meet later, unveiled ambitious expansion plans for the company at the AGM which included venturing out into new areas and further expanding into power generation. While the upgradation of the 4th stream of alumina refinery is still on the 5th stream is on the drawing board which will take place subject to the Pottangi mines being awarded to it. At long last the Utkal E coal block has come closer to getting into production which is expected in December 2014.
Das clarified that contrary to the perception the Nalco is committed to the second smelter and CPP at Sundargarh. The company is also planning a caustic soda plant and has signed an MoU with the Power Grid Corporation of India ltd to set up a plant for manufacture of aluminium and aluminium alloy electrical conductors near the smelter plant at Angul in joint venture.
While the nuclear power plant project at Kakrapar in Gujarat is on and more wind power units are being planned the railway wagon venture with BEMl that used to figure in the annual reports every year is notably missing from the list of the future projects this year.
The Nalco has adopted an Integrity Pact from September 15 last year with threshold value of `50 crore in compliance to the recommendation of the Administrative Reforms Commission. It also released its first Sustainable Development Report during the financial year.
The Nalco Foundation has adopted project-based approach with a focus on development of villages located within 15 km radius of the Nalco’s production facilities. It is operating six mobile health units in the periphery villages of its Angul complexes and mines and refinery complex at Damanjodi.