Nalco Share Price Dips As A Result Of Declining Net Profit

Nalco (National Aluminium Company Limited), the Aluminium maker, on 13^th September 2016 (Wednesday) reported a 36 per cent decline in its standalone net profit at Rs 135 crores for the quarter ended 30^th June, 2016. The state-run Aluminium firm had clocked a net profit of Rs 174.32 crores in the year-ago period, as filed in BSE.

The total standalone income of the Navratna firm rose by almost 4 per cent to reach Rs 1,549 crores in April-June quarter this fiscal from Rs 1,491.27 crores during the corresponding quarter of the previous fiscal. The total expenses of the Company were higher at Rs 1,473.19 crores from Rs 1,361.63 crores during the quarter under review.

The firm's offer of Rs 2,835 crores to buy back 64.43 crores shares opened last month on 30^thAugust 2016 and will close this week on 14^th September. The offer size represents 22.15 per cent of the aggregate of the fully paid-up share capital as well as free reserves of the Navratna Company for the financial year ended 31^st March, 2015.

In the month of May, the PSU had announced plans to buy back shares not exceeding 64,43,09,628 (accounting for 25 per cent of the total number of equity shares in paid-up share capital of the firm). The buyback is at a price of Rs 44 apiece payable in cash for an aggregate consideration not exceeding Rs 2,834.96 crores. The government holds 80.93 per cent stake in Nalco.

NALCO, incorporated in the year 1981, has units in Odisha at places like Angul and Damanjodi. The Company was incorporated as a public sector enterprise of the Ministry of Mines, Government of India in 1981.

The main units of the Aluminium maker are at Damanjodi (Mines & Refinery complex) and Nalconagar, Angul (Smelter & Power Plant Complex). The Bauxite mines called “Panchpatmalli Mines” are situated atop a set of five mountains called Panchpatmalli. These mines are open cast mines.

Nalco share price is currently trading at Rs 46.00, down by 2.34 per cent on the back of declining standalone net profit. The intraday high and the intraday low are Rs 46.90 and Rs 45.60 respectively.

Nalco is one of the top 500 shares recommended by Dynamic levels.