National Aluminium Company Ltd
10 Jan 2000
- Non convertible debenture - Rs. 644 crore Rating : AAA (reaffirmed)
Crisil has reaffirmed the ‘AAA’ rating it had assigned to the Rs.
644-crore non-convertible debenture programme of National Aluminium Company Ltd.
The reafirmation of the rating
reflects continuity in Nalco’s globally competitive position as a low cost aluminium
producer, stemming largely from the integrated nature of its operations and its favourable
operating efficiency, the company’s favourable market position, and its strong
financial and liquidity position. The rating also factors in the anticipated improvement
in its margins and operating cash flows following the restoration of normalcy of
operations in the current financial year and the limited risk arising on account of the
large capital expenditure programme being implemented by the company.
National Aluminium Company Limited, a government of India undertaking, is one of the largest integrated aluminium producers in Asia, with an installed capacity of 8 lakh tonnes per annum of alumina and 2.3 lakh tpa of primary aluminium. Nalco''s vertically integrated operations include facilities for bauxite mining, alumina refining, and aluminium smelting. It also runs a captive power plant, which meets its entire power requirements, and captive port facilities for exporting its products and importing raw materials.
Nalco’s operating performance was affected in 1998-99 due to malfunctioning of some of its smelter pots, which impacted its performance on operating parameters as well as its cost structure and consequently the profitability during the year. The company has been able to restore normalcy since the beginning of the current financial year.
This, coupled with the recent surge in aluminium prices on the London Metal Exchange, is expected to lead to a significant improvement in margins and operating cash flows in the current financial year. The company is currently in the process of implementing a large scale capital expenditure programme of more than Rs. 4,000 crore, which includes enhancing the capacity of its existing facilities in addition to implementing various small projects.
During 1998-99, the company reported a profit after tax
of Rs. 239 crore on net sales of Rs. 1,398 crore.
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