Expect FY18 net profit to increase by 45-50%: NALCO

The National Aluminium Company (NALCO) is on the radar after aluminium prices hit multi-year highs while alumina prices too are on a roll.

In an interview to CNBC-TV18, TK Chand, CMD of NALCO spoke about the price increase and latest happenings in the company.

Chand said that alumina prices have increased by 10-11 percent on a quarter-on-quarter (QoQ) basis, he added.

He further said that bauxite mining disruption, supply cuts in China lead to hike in alumina price.

According to him, alumina is moving towards a deficit situation globally.

"In alumina, caustic soda constitute a major portion and there has been increase in the price of caustic soda, from Rs 36,000 per tonne it has gone up to Rs 40,700 per tonne and this has significant impact on production cost and that is also one of the factor which has pushed alumina prices," he added.

On aluminium front, he is seeing robust demand for it from north Indian regions.

He expects aluminium prices to hover around USD 2,150 per tonne.

Talking about numbers, he expects FY18 net profit to increase by 45-50 percent.

He further said that the current cash on book is at Rs 2,700 crore. Looking at using the cash for setting up one million tonne aluminium capacity and will be set up in another 40 months, said Chand.