NALCO Q1 profit seen up 23% to INR 166 cr on strong volume, operational performance

<p>National Aluminium Company's (NALCO) first quarter earnings are expected to be strong on volume growth. Profit is seen rising 23 percent year-on-year to INR 166 crore and revenue may increase 31.8 per cent to INR 2,042 crore in the quarter ended June 2017.</p> <p style="text-align: center;"><img style="vertical-align: middle;" src="http://www.alcircle.com/uploads/images/NalcoAug9.jpg" alt="News" width="517" height="387" /></p> <p>Operating profit is expected to surge 56.9 percent to INR 306 crore and margin may expand 240 basis points to 15 per cent compared to same quarter last year, according to average of estimates of analysts polled by CNBC-TV18.</p> <p>Analysts expect alumina volumes at 3.3 lakh tonnes (a growth of 14 per cent YoY but fall 18 per cent QoQ) and aluminium volumes at 1.02 lakh tonnes (up 24 per cent YoY but down 6 per cent QoQ).</p> <p style="text-align: center;"><a title="AlCircle Report" href="http://www.alcircle.com/exclusivereport/?m=exclusivereport" target="_blank"><img style="vertical-align: middle;" src="http://www.alcircle.com/uploads/images/Report1banner.gif" alt="News" width="480" height="82" /></a></p> <p>Benchmark alumina prices increased 15 per cent YoY at approximately US$290 per tonne. Analysts expect cost pressures on rising caustic soda &amp; other input prices.</p> <p>Key issues to watch for would be availability of coal for captive power plant and <a title="News" href="http://www.alcircle.com/primary_aluminium/newscircle/market/detail/28429/lme-aluminium-hits-2-12-year-peak-shfe-aluminium-rallies-in-tandem" target="_blank">LME aluminium price</a> trend.</p>