For the first-quarter ended 30th June, 2000, net sales grew 18.14 per cent from Rs 478.4 crore to Rs 565.2 crore. Firm international prices have been the main contributors, coupled with higher volumes. The international prices on the London Metal Exchange (LME) have moved at around $1500 per tonne and helped the domestic producer to maintain its prices at higher levels. Higher value addition has also helped the company and it was clearly reflected in improving profit margins. As a result, OPM in the first quarter stood at 47.68 per cent - much higher compared to 44.64 per cent in the corresponding period in the previous year. OPM for the full year 1999-2000 stood at 46.28 per cent.

With lower interest burden, profit at the net level risen by 27.48 per cent to Rs 175.8 crore in the first quarter.

The future for the company continues to be bright. The company is one of the lowest-cost producer in the world, and was able to improve its value-chain significantly in the recent past. With great emphasis on exports and value additions, profit margins are likely to improve further, or at worst, remain at the same levels.

As for growth in revenue is concerned, the company has a strong-hold in the domestic market, and the demand for aluminium is likely to improve with an expected improvement in automobile sector.

At the same time, the outlook for the international aluminium prices is also favourable, and prices are expected to remain firm in the short-to-medium term.

The fall in rupee also augurs well for Hindalco, as export amount to significant portion of its sales. It also provides the company with an opportunity to increase its domestic price as the cost of imports goes up. The recent drop of more than 5 per cent should help the company's performance in the medium-term.

As from the stock market point of view, the stock has improved steadily after the management decided not to go ahead with its mega project - Aditya Aluminium. The stock has made a base at Rs 780, which can be used as a stop loss by short-term players.

For the long-term players, the level of Rs 650 can be used as stop loss point. On the upper side, the stock is likely to face a strong resistance at around Rs 900.