(Reuters) -India’s state-owned National Aluminium Company (NALCO) on Friday reported a profit rise on the back of higher commodity prices.
The benchmark three-month aluminium and copper rose 8.2% and 5.6% on-year during the quarter due to uncertainty around U.S. trade policies. Higher commodity prices tend to support selling prices and margins for mining companies.
The Bhubaneswar-based company is India’s largest producer of alumina, or aluminium oxide, which is used in the production of aluminium and also as a catalyst in petrochemical refining.
Its consolidated profit came in at 14.3 billion rupees ($162.69 million) for the July-September period, up 36.7% from a year ago.
Revenue from operations rose 7.3% to 42.92 billion rupees.
NALCO’s aluminium business, which contributes to more than half of overall revenue, grew nearly 6%.
Its second business segment, chemicals, which produces caustic soda, hydrochloric acid and sodium hypochlorite, surged 7.7%.
Expenses fell 3% to 25.49 billion rupees, mainly on lower fuel costs and employee benefit expenses.
Revenue growth and drop in expenses aided EBITDA (earnings before interest, taxes, depreciation, and amortisation) margin expansion.
Rival Vedanta had reported 14% rise in the aluminium segment revenue, while Hindalco reported a profit beat on improved commodity prices.
($1 = 87.8950 Indian rupees)
(Reporting by Vijay Malkar in Bengaluru; Editing by Harikrishnan Nair)
