H2FY17 to be better with price hike, domestic expansion: Nalco

The stock price of Nalco has seen a 30 percent jump this week and 75 percent rally in 2016. Business is expected to improve in the second half of current fiscal in comparison to the first half, said TK Chand, CMD of Nalco. The company is using alumina at 90 percent capacity and aluminum at 80 percent. Aluminum prices have seen 5 percent improvement in October-November, benefits of which will come in the current quarter.It is yet to start coal production from captive blocks, Chand said adding it is getting coal via linkage from Coal India. Cost of power is below Rs 3 per unit for the company. Nalco has cash reserve of Rs 3,000-3,500 crore, which will be used for domestic capacity expansion, Chand added. The company is also expecting protection from the government against cheap imports from Middle East and China. Watch video for more..