Nalco lowers FY17 profit and cash balance projections

<p>India's National Aluminium Co. Ltd (Nalco) delivered an astounding performance with gross turnover amounting to INR7,157 crore and net profit INR731 crore in FY2015-16. The feat is all the more remarkable since it happened during a period when about 70 per cent of the world's aluminium producers have reported loss. Nalco CMD T K Chand said the company's effort to stay low-cost has helped it stay profitable amid market downturns. <br /><br />Nalco has set a capex target of INR870 crore during the current financial year and is targeting revenue of INR7,100 crore from operations.<br /><br />According to a recent InfraCircle report, the aluminium producer spend INR452 crore towards capital expenditure compared with a INR781-crore target last year due to commodity industry slowdown and shrinking domestic demand and incessant flow of cheap aluminium imports from China.<br /><br /><img style="vertical-align: middle;" src="http://www.alcircle.com/uploads/images/NALCO-Recruitment.png" alt="News" width="905" height="542" /><br /><br />According to the Memorandum of Understanding (MoU) signed between the government and Nalco, the company has projected an accumulated reserve of INR9,170.52 crore in FY2016-17 compared with INR11,618.48 crore in FY2015-16. The net worth of the company is also projected at INR10,137 crore in FY2016-17 compared with INR12,907 crore during FY2015-16.<br /><br />Nalco expects paid up share capital to total at INR966.47 crore in current financial year compared with INR1,288.62 crore during last year.<br /><br />The company noted in the MoU that its cash and bank balance may also come down to INR1,207 crore this year compared with INR4,933.53 crore in FY2015-16. The reason for the depletion in cash reserve has been attributed to buy-back of shares, which has been postponed from its scheduled date of 29 July. Nalco is awaiting final approval from the Securities and Exchange Board of India for the buy back. <br /><br />The major expenses of the aluminium producer towards purchase of raw material, power and fuel during is projected at INR1,227.61 crore and INR2,060.98 crore, respectively this fiscal. Expenses towards the same were at INR1,104 crore and INR1,864.61 crore, respectively in the previous financial year.</p>