Nalco's officials were not immediately available for comments on the company's performance.
For the April-December period though, the company still managed to clock profit before tax (PBT) of Rs 47.33 crore and Rs 35.47 crore in net profit. Nalco's total income in this period tanked by 68 per cent to Rs 2,136.57 crore from Rs 6,702.15 crore in the comparable period of FY19. In last fiscal, Nalco's net profit surged 29 per cent to Rs 1,732 crore, making the company the most profitable in a decade.
despite being an integrated player was negatively impacted from fragile alumina prices. The navratna company posted a rare quarterly loss of Rs 28 crore in Q2 of FY20 as tepid realizations from alumina exports and higher power costs crimped margins.
With alumina prices diving, Nalco
is now mulling to reboot its strategy to sell the entire surplus alumina in spot markets. The CPSE may now revert to its older practice of sealing long-term contracts with key buyers to insulate against vacillating alumina prices on the spot markets.
Nalco is also implementing an all-weather business model to make the company immune to the vagaries of cyclical metals sector business. It is planning to foray into merchant mining of bauxite. Also, it aims to tap the waste-to-wealth model. The new business model promises to enhance Nalco's net profit by Rs 935 crore after two years.