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NALCO, NRL sign long-term pact for supply of CP Coke

Capital Market 

State-run National Aluminium Company (NALCO) signed a memorandum of understanding (MoU) with Numaligarh Refinery (NRL) on 24 September 2020 for long term supply of Calcined Petroleum Coke (CPC) to ensure raw material security.

NRL signed an MoU with aluminum giant NALCO for long term supply of CPC for a period of 5 years with an annual estimated sale of 40,000 MT (+/-10%).

NRL said the MoU will be a win-win situation for both organizations with NRL gaining a dedicated market while NALCO ensuring raw material security for itself.

NRL produces around 70 ~ 75 thousand metric tonnes (TMT) of CPC per annum by processing raw petroleum coke generated in the refining process. CPC will be dispatched from NRL's marketing terminal at Numaligarh in Assam to NALCO's smelter plant at Angul in Odisha by Railway rake, the statement added. The announcement was made on 25 September 2020.

On a consolidated basis, NALCO net profit slumped 82.9% to Rs 16.69 crore on a 33.8% drop in net sales to Rs 1,380.63 crore in Q1 June 2020 over Q1 June 2019.

NALCO is a Navratna group 'A' CPSE having integrated and diversified operations in mining, metal and power under Ministry of Mines, Government of India. As of 30 June 2020, the Government of India held 51.50% equity of NALCO.

Shares of NALCO jumped 5.65% to Rs 31.80 on Friday (25 September). The scrip has surged 30.06% from its 52-week low of Rs 24.45 hit on 13 March 2020.

On the technical front, the stock's RSI (relative strength index) stood at 38.336 on Friday. The RSI oscillates between zero and 100. Traditionally, the RSI is considered overbought when above 70 and oversold when below 30.

The stock was trading below its 50-day moving average (DMA) placed at 34.89 and its 200-day moving average (DMA) placed at 35.36.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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First Published: Sat, September 26 2020. 13:40 IST