National Aluminium Company (Nalco), India’s second-biggest producer of the metal, said profit more than doubled in the first quarter as an economic recovery led a surge in demand and prices.
Net income climbed to Rs 284 crore ($60.7 million) in the three months ended June 30 from Rs 126 crore in the corresponding period last year, the Bhubaneswar-based company said today in a statement. Sales rose to Rs 1,400 crore from Rs 1,040 crore. Rising income levels lifted India’s car sales by more than 30 per cent each month in the April-June quarter. The country also added 1,815 megawatts in the first quarter. The average price of aluminum gained 39 per cent in the latest quarter to $2,126 a ton on the London Metal Exchange. The company also benefited from higher output in this period compared with last year.
Hindalco Industries, India’s largest aluminum producer, earlier this month said first-quarter profit rose 11 per cent.
Nalco shares rose 2.1 per cent to Rs 439.05 in Mumbai trading yesterday. The shares have advanced 5.1 per cent this year, compared with a 4 per cent gain in BSE.
