The National Aluminium Company Limited (NALCO) is leading from the front in overall performance, with its core value and smart strategy, helped by its visionary management and energetic team of employees.
One has to look at the last four years’ financial performance of this Navaratna public sector enterprise under the Ministry of Mines, to appreciate the turnaround and consistent performance.
NALCO in 2018-19 has registered a massive Rs 1732 crore profit, the highest in a decade. It has been a steady growth for the company in the last four years—in 2015-16 it had registered a net profit of Rs 731 crore, in the next FY it was Rs 669 crore and it further grew to Rs 1342 crore in 2017-18.
The continuous growth reflects NALCO’s determination to emerge as a strong and valuable PSE. With the net profit of Rs. 1732 crore , the Company registered a growth of 29%, which is Rs. 390 crore higher over its net profit of in 2017-18.
During 2018-19, the Net sales turnover for the year is Rs.11,386 crore registering a growth of 21% over last year. NALCO’s export earning of Rs. 4793 crore is a growth of 18 % over last year.
“NALCO management has developed the strategy and NALCO employees have worked hard to implement the strategy; i.e. 100% capacity utilization in Mines, more than 100% capacity utilization in Alumina Refinery, cost focus making NALCO the lowest cost producer of Bauxite and Alumina in the world and ramping up of production in Smelter to have top up,” Dr Tapan Kumar Chand, Chairman and Managing Director NALCO, told Outlook.
VISION and MISSION
As mentioned earlier, it required visionary management to achieve this. Under the stewardship of Dr Tapan Kumar Chand, CMD NALCO, in more than four years, the company has achieved major physical and financial growth. It was a relentless pursuit for excellence by Chand supported by an energetic team of management and workers. NALCO’s team unveiled a Corporate Plan which in January 2018 with a clear mission of a three year’s action plan, a seven year’s strategy and a 15 year’s vision to improve both bottom line and the top line of the company.
The Odisha-based NALCO has forecasted growth in revenue to reach Rs.18,171 crore by the end of seven years and Rs.31,248 crore by the end of 15 years.
Further, as per the Public Enterprise Survey of Department of Public Enterprises (DPE), the Company has been rated as the 3rd Highest ‘Net Foreign Exchange Earning CPSE’ in the Country for the year.
NALCO has recorded an all-around success and global benchmarks in Fiscal 2018-19. Along with significant achievements on the production front, NALCO achieved the distinction of becoming the lowest cost producer of alumina in the World, as per the Wood Mackenzie report, for three consecutive years.
Going a step further, the company has also been ranked as the Lowest-cost Producer of Bauxite in the World for the year 2018-19. In matters of profitability, NALCO is way ahead of its private sector peers by registering an EBIDTA Margin of 28%. Industry analysts attribute NALCO’s splendid performance to the implementation of its New Business Model since 2016.
Under the Employee Social Responsibility (ESR) scheme NALCO supports, below poverty line girl child under its flagship ‘NALCO Ki Ladli’ program.
NALCO through its CSR programmes
- Offers residential education to tribal children near its project sites, under program Indradanush.
- It is working on the development of Puri as Swachh Iconic Place.
- Operates a number of Mobile Health Units (MHUs) closer to its projects in Angul, Damanjodi and Pottangi,
- An Eye Care Hospital at Angul.
- Skill-based training for village women.
- Initiatives to make villages open defecation free.
It is reflected in the implementation of the company’s focus to achieve the 3Ps—Production, Productivity and Profitability. NALCO has ended the financial year 2018-19 on a strong performance in the domestic sale which is highest-ever since inception. In short, the year 2018-19 has been a year of new records in production since inception.
- Nalco registered the best performance in a decade with Rs 1,732 crore net profit, a growth of 29 % over previous year.
- 100% capacity utilization, NALCO’s Panchpatmali Mines has achieved Bauxite excavation of 74.14 lakh MT, which is highest ever since inception.
- Net sales turnover for the year is Rs.11,386 crore registering a growth of 21% over last year.
- Nalco is way ahead of private sector peers by registering a EBIDTA Margin of 28 %
- Bauxite transportation has gone up to 72.31 lakh MT, which is also highest ever since inception.
- Company’s Alumina Refinery has produced highest-ever 21.53 lakh MT of Alumina Hydrate and set a new record. Steam & Power Plant (SPP) of Alumina Refinery achieved highest ever net power generation.
- Aluminium Smelter achieved the highest cast metal production of 4.40 lakh MT in the last 8 years. NALCO’s Smelter has produced highest-ever Wire rod, billet, green anode, rodded anode, T-Ingot since inception.
- Wind power generation of 363 MU is also highest ever since inception.
- Total metal sale of 4.41 lakh MT registered a growth of 3.5% over last year and also Domestic sale of metal of 4.02 lakh MT registering a growth of 14.9% over last year are highest ever since inception.