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National Aluminium Company (NALCO) expects its revenue from operations to increase to around INR 190 billion (USD 2.22 billion) in FY27, supported by stable aluminium prices, higher production from its new alumina refinery and easing input costs.
{alcircleadd}Chairman-cum-Managing Director Brijendra Pratap Singh said the company expects aluminium prices to stabilise at around USD 2,900-3,000 per tonne, supported by healthy demand and tight market fundamentals despite concerns over additional global supply.
Singh said, “The LME inventories are low, the demands are there, and the disruptions in the alumina smelters in refineries, which has happened, that is going to come in next maybe six months, seven months. So demand supply gap is there. Our expectation is that the prices will stabilise somewhere around USD 2,900-3,000.”
NALCO expects revenue to rise from approximately INR 177 billion (USD 2.07 billion) in the previous financial year to INR 190 billion (USD 2.22 billion) in FY27.
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The company also expects higher raw material costs, including caustic soda, heavy fuel oil and other key inputs, to ease during the second half of FY27. Although production costs have increased by around 10-12 per cent so far, management expects them to return to last year's levels, allowing EBITDA margins to remain in the 40-45 per cent range.
Despite expectations that alumina prices could remain under pressure due to increased production in Indonesia and weaker demand from the Middle East, NALCO is continuing with its expansion programme.
The company has started commissioning its 1-million-tonne-per-year alumina refinery expansion, which is expected to reach full production within the next three months.
To utilise the additional output, NALCO plans to nearly double its domestic alumina sales to around 250,000 tonnes this year while continuing to expand exports. The company expects demand to remain healthy even if alumina prices soften.
NALCO's market capitalisation currently stands at approximately INR 619.22 billion (USD 7.24 billion).
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