The sheen is showing

INDIA INC PERFORMANCE IN Q1/ NON-FERROUS METALS

All major non-ferrous metal companies have beaten analysts' estimates and reported higher net profits riding high on escalation of prices and global as well as local markets.

Hindustan Copper, Sterlite Industries, Hindustan Zinc, National Aluminium and Madras Aluminium posted over 100 per cent growth in their net profits.

Hindalco was the worst performer with a net profit growth of 58.62 per cent. However, even Hindalco put up a better than expected show by virtue of turnaround of the copper business and lower tax rates.

Despite lower production volumes of alumina and aluminium, Nalco sustained its profitability in the quarter. This is because of rise in the prices of aluminium and alumina which touched their peaks during the quarter. As a result of this, Nalco's sales revenue rose 51.78 per cent and net profit 121.81 per cent.

Copper major Sterlite Industries has carried on with its excellent Q4, 2006 performance in the quarter ended June 2006. The high copper prices in international and domestic markets helped the company better price realisations due to improved TC/RC margins.

The company has outperformed on all parameters and achieved a sharp growth in profit as well as in sales. On standalone basis, for the quarter ended June 2006, Sterlite reported a handsome growth of 113 per cent in its sales to Rs 2,374.81 crore. Its operating profit margin improved by 590 basis points to 13.2 per cent and net profit grew by 472 per cent.

Hindustan Zinc, the largest domestic integrated zinc and lead producer reported a robust 205.5 per cent growth in sales and 490.54 per cent rise in profits mainly on account of the upsurge in zinc prices during the quarter in international as well as in domestic markets.