NALCO expects dividend momentum to continue

State-owned National Aluminium Company (NALCO), a producer and exporter of aluminium, is confident of continuing the dividend payout momentum. NALCO's Chairman and Managing Director Sridhar Patra spoke with CNBC-TV18 after the Navratna PSU reported a solid third quarter performance.

“Under public sector undertaking we are bound to follow the Department of Investment & Public Asset Management (DIPAM) guidelines and as per the guidelines 30% of the profit or 5% of the net worth whichever is higher is to be paid as dividend and the company has been paying higher than that dividend and we assure all our investors we will not disappoint them,” Patra said.

The Bhubaneswar-based company's profit rose 84% year-on-year (YoY) to ₹471 crore for the third quarter (Q3FY24( while revenue rose around 2% to ₹3,347 crore.

The company approved the payment of the second interim dividend of ₹2 per share (40% on face value of ₹5 each) on the paid-up equity share capital of ₹918.32 crore for the financial year 2023-24. The record date for the dividend payout is February 23. This is the second interim dividend after the ₹1 dividend announced in November 2023.  

NALCO has one of the largest integrated bauxite-alumina-aluminum-power complexes in the country.

Outlining the future plans, Patra said the construction of its ₹8,000 crore, one million tonne alumina refinery will be operational by mid-2025 to 2026.  The capex will be funded primarily through internal accruals, and some loans, if needed.

The cash on books is currently around ₹3,900 crore, he said.

The company, which has a market capitalisation of ₹29,882 crore, has seen its shares gain 98% over the last year.