India's NALCO says profit doubles as higher aluminium, copper prices boost margins
May 21 (Reuters) - India's National Aluminium Company (NALCO) (NALU.NS), opens new tab, on Wednesday, reported that its fourth-quarter profit more than doubled as higher commodity prices boosted margins.
Global prices of base metals, including aluminium, rose sharply over January to March due to lower production in China, falling inventories, and stockpiling by importers due to uncertainties over U.S. tariffs.
The benchmark three-month aluminium and copper rose 17% and 10% on-year, respectively, in the quarter. Higher commodity prices tend to raise the selling price of metals.
State-owned NALCO's consolidated profit came in at 20.67 billion rupees ($241.7 million) for the January-March period, more than double from a year earlier.
Revenue from operations rose 47.2% to 52.68 billion rupees.
NALCO's aluminium business, which contributes to over half of overall revenue, grew nearly 33%.
It reported a 60% surge in its chemicals business, its second-biggest segment and one that produces caustic soda, hydrochloric acid and sodium hypochlorite.
Expenses fell 3.2% to 26.34 billion rupees, mainly due to lower raw material costs.
That helped lift its EBITDA (earnings before interest, taxes, depreciation, and amortisation) margin to 50% from 24%.
Rival Vedanta's (VDAN.NS), opens new tab profit also doubled last quarter, while Hindalco's (HALC.NS), opens new tab earnings rose more than analysts had estimated.
($1 = 85.5060 Indian rupees)
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