BHUBANESWAR : State-run National Aluminium Company (NALCO) on Tuesday declared its highest-ever dividend of 114 per cent, a payout of Rs 1,102 crore, for FY2017-18 as against 56 per cent in the year-ago period. With a sharp jump in earnings this year, the dividend stands much higher. For the year, dividend payment, including dividend distribution tax, works out to 98.78 per cent of its net profit.
The company has paid a total of Rs 7,273.59 crore as dividend including Rs 5,918.39 crore as the share of the government. “The total payout, including dividend distribution tax, works out to Rs 1,326.06 crore, as against Rs 651.40 crore in the last fiscal,” said chairman and managing director T K Chand, addressing the company’s 37th annual general meeting here. The dividend payout works out to Rs 5.70 per equity share of Rs 5 each.
On the sidelines, Chand said that the new business plan has put NALCO on a new growth path. Highlighting the performance of the company during the last fiscal, he said a net profit of the company doubled to Rs 1,342 crore from Rs 669 crore in FY2016-17. NALCO also achieved the highest-ever turnover of Rs 9,376 crore, registering a growth of 26 per cent over the previous year. The export earnings amounted to Rs 4,076 crore, up by 12 per cent over last year.
Such strong performance resulted from a sharp surge in alumina prices, coupled with the falling rupee. “NALCO is benefiting from the unusually high alumina price. Although we expect the prices to fall after 2019, this should be offset by a steady rise in aluminium prices as supply continues to tighten,” said HSBC Global Research in a report. Aluminium metal sales stood at 4,26,316 MT in 2017-18 as against 3,85,518 MT last year, while alumina sales amounted to 13,37,416 MT including export of 12,76,775 MT.
Shares of NALCO soared three per cent to Rs 77.20, their highest level in three months. Analysts say the dividend yields alone could make the stock attractive if the largest alumina producer manages to sustain its operating performance.