Nalco posts Rs 28-cr Q2 loss on weak alumina prices, high coal cost

This is a rare quarterly loss for Nalco, known for consistent profitability. It has regularly figured among the top-three forex-earning public sector companies

Subdued alumina prices in international markets and higher input costs, especially that of coal, forced National Alumina Company (Nalco) to close the quarter ended September 30 with a net loss of Rs 28.35 crore. Its profit before tax for the quarter stood at Rs 47.17 crore.

The state-owned firm had posted a profit of Rs 510 crore in the corresponding period of FY19, riding on buoyant alumina prices after the US treasury had enforced curbs on UC Rusal. Nalco’s strategy to sell the whole of its surplus alumina in the spot markets instead of opting for long-term contracts paid off,