NALCO announces highest ever dividend

Bhubaneswar, Sep 21: In the 26th Annual General Meeting of National Aluminium Company Ltd. (NALCO) here on Friday, the company's shareholders approved the annual accounts for 2006-07 with the highest-ever sales turnover of Rs 6515 crore, the highest-ever export earning of Rs. 2585 crore and the highest-ever net profit of Rs. 2381 crore. They also approved the highest-ever dividend payout of 75 percent amounting to Rs 483.23 crore (including 35 percent 1st interim dividend paid during February and 15 percent 2nd interim dividend paid in March), on the paid-up equity share capital of Rs 644.31 crore, as compared to 50 percent dividend amounting to Rs 322.16 crore paid for the previous year. Addressing the AGM, company Chairman C.R. Pradhan said that NALCO could achieve the highest sale of 3,56,616 MT of metal during the year 2006-07, surpassing the previous highest of 3,53,841 MT in 2005-06. Similarly, the sale of 2,63,494 MT of metal in the domestic market surpassed the previous highest of 2,58,094 MT achieved in 2005-06. The system of entering into annual MoU with domestic customers for sale of aluminium metal, by providing benefits and incentives, has helped NALCO achieve a growth of approximately 2.1 percent of sales in domestic market over the previous financial year, Pradhan said. Besides, for the third consecutive year, NALCO continued to remain a 'Zero Debt' company. The company utilised its internal cash generation to meet its working capital and capex requirements and it had not utilized any borrowing facility during the year. "So far, we have been funding the expansion activities through internal accruals. However, to meet foreign cost component of ongoing project, we are in process of tapping the external borrowing to raise 150 million Euro. Quite a few banks and merchant bankers have responded to the bids invited by us," Pradhan observed. Talking about the growth plans of the company, Pradhan said that NALCO is currently implementing the 2nd phase expansion with an investment of Rs.5003 crore (at March, 2007 level). These projects are scheduled to be completed by the end of 2008, which will raise the Bauxite Mines capacity to 63 lakh tonnes, Alumina Refinery capacity to 21 lakh tonnes, Aluminium Smelter capacity to 4.60 lakh tonnes and Captive Power Plant capacity to 1200 MW. Besides brownfield expansion, NALCO is examining some proposals for setting up joint venture project overseas for Smelter, to add value to surplus alumina to the tune of 12 lakh tonnes to be available once its 2nd phase expansion gets completed. The company is also exploring the possibility of setting up backward integration projects to ensure steady supply of some of the raw materials and for insulating the company from price uncertainties. These proposals are being actively pursued and the final views shall be taken in the current fiscal, Pradhan said. Informing about the 70 million tonne 'Utkal-E' coal block, allotted by the Central Government to NALCO for its new units at Captive Power Plant, Pradhan said that the Mine Plan has already been approved by the Ministry of Coal and Detailed Project Report has been prepared. Land acquisition activities have started and environmental clearances and forest diversion activities are in progress, Pradhan said, while adding that mining operations are scheduled to commence by the end of 2008. "Besides, NALCO is also pursuing with the Government for new bauxite mining leases at Gandhamardan, allotment of Pottangi bauxite deposit in Orissa, as well as Jerrela bauxite deposit in Andhra Pradesh," Pradhan added.