National Aluminium Company (Nalco) has posted a 40% growth (YoY) in net profits for the half year ended 30th September 1999 (1HFY2000).
Nalco (FY99 Sales Rs 15.05 bn) is India's most efficient aluminium producer. The company is the lowest cost producer of alumina and one of the lowest cost producers of metal in the world.
Profit before Tax
Profit after Tax
Net profit margins
The company has benefited from a surge in aluminium prices globally. The reason for the surge can be attributed to the pick up in demand in the Southeast Asian economies and the supply gap created in the market due to the temporary shut down of some smelters.
Although the company seems to have taken measures to control operating costs, the debt servicing costs have risen sharply. This could be a cause of concern in the future.
Analysts have rated the stock as a 'BUY' on account of the recovery in aluminium prices in the domestic and international markets.
Hindalco Industries has reported a healthy growth in the topline on the back of Higher volume and realisation for both Aluminium and Copper segments. However, the bottomline declined marginally primarily on the back a provision of Rs 1.04 billion.
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