Weak rupee, firm alumina prices to bolster Nalco's earnings

A subdued rupee and the firming up of international alumina prices have spelt a bonanza for state controlled National Aluminium Company (Nalco). Since Nalco exports nearly 1.3 million tonnes alumina each year, it is harvesting the gains from the commodity’s price upswings as well as the falling rupee which is piling up gains.

Rupee devaluation is favouring Nalco as alumina sales contribute 46 per cent to the company’s gross turnover. For every single point depreciation in the Indian currency vis-a-vis the US dollar, Nalco rakes in an extra net profit of Rs 130-140 million a month which effectively translates into