As a sudden shift in policy, China has announced the withdrawal of its 13% export tax rebate on aluminium and copper products, effective December 1, 2024. This decision is poised to reshape the global metal market dynamics, particularly benefiting Indian manufacturers like Hindalco, Vedanta, and Nalco.
The move comes amid escalating trade tensions and follows China’s dominant position in global aluminium exports, which represented 15-16% of the country’s total production in 2023. The announcement has already triggered a substantial 8.5% surge in LME aluminium prices, signalling a strong market response.
For India’s metal sector, this development presents a strategic advantage, potentially boosting domestic manufacturers competitiveness in the international market. Industry analysts expect this policy change to support sustained aluminium price increases and strengthen Indian companies market positions starting in December.
1. Hindalco Industries Limited
Hindalco Industries Limited, part of the Aditya Birla Group, is a prominent name in India’s metals and mining industry. Founded in 1962, it has become one of the largest producers of aluminium and copper in India and a global leader in aluminium production. Hindalco’s product range spans primary aluminium, rolled products, extrusions, and foils, as well as refined copper.
With a strong manufacturing base across India and international operations in North America and Europe, Hindalco’s integrated operations include bauxite mining, alumina refining, and aluminium smelting. Sustainability is central to Hindalco’s strategy, with ongoing efforts to reduce its carbon footprint and embrace renewable energy. Financially, the company continues to perform well, supported by steady demand for aluminium across sectors like automotive, construction, and packaging.
Hindalco Industries Limited’s revenue from operations has reduced by 3.24 percent from Rs. 2,23,202 crore in FY23 to Rs. 2,15,962 crore in FY24. The company’s net profit has increased from Rs. 10,097 crore in FY23 to Rs. 10,155 crore in FY24, which has grown by 0.57 percent.
With a market capitalisation of Rs. 1,48,462 crores, Hindalco Industries Limited’s share price is trading at Rs. 660.65 per equity share, a 5.31% increase from the previous close.
2. Vedanta Limited
Vedanta Limited, established in 1976, is a diversified natural resources company based in Mumbai. The company operates across several key sectors, including metals, oil and gas, and power generation. As one of India’s largest producers of zinc, lead, silver, copper, iron ore, and aluminium, Vedanta has a significant footprint in metals production.
Additionally, the company has a strong presence in oil exploration and power generation, which supports its extensive mining operations. Vedanta operates globally with a presence in India, South Africa, Namibia, and Australia. Committed to corporate social responsibility, Vedanta invests in education, healthcare, and community development initiatives. Financially, the company has shown robust performance, benefiting from high commodity prices and operational efficiency across its diversified segments.
Vedanta Limited’s revenue from operations has reduced by 2.4 percent from Rs. 1,47,308 crore in FY23 to Rs. 1,43,727 crore in FY24. The company’s net profit has reduced from Rs. 14,503 crore in FY23 to Rs. 7,539 crore in FY24, which has declined by 48 percent.
With a market capitalisation of Rs. 1,77,961 crores, Vedanta Limited’s share price is trading at Rs. 455.10 per equity share, a 5.01% increase from the previous close.
Also read….
3. National Aluminium Company Limited (NALCO)
National Aluminium Company Limited (NALCO), established in 1981, is a major public-sector enterprise in India’s aluminium industry. It is one of Asia’s largest integrated aluminium producers, with core operations in alumina refining, smelting, and bauxite mining. NALCO’s alumina refinery ranks among the largest in the world, supporting its substantial capacity in primary aluminium production.
The company emphasises environmental sustainability through responsible mining practices and energy-efficient production, along with investment in renewable energy initiatives. NALCO holds a strong position in the Indian aluminium market and exports a significant portion of its products globally. As a government-owned entity, its financial health aligns with national policies, consistently contributing to the country’s revenue through dividends while maintaining profitability.
NALCO Limited’s revenue from operations has reduced by 7.4 percent from Rs. 14,257 crore in FY23 to Rs. 13,149 crore in FY24. The company’s net profit has increased from Rs. 1,544 crore in FY23 to Rs. 2,060 crore in FY24, which has grown by 33.4 percent.
With a market capitalisation of Rs. 45,050 crores, NALCO Limited’s share price is trading at Rs. 245.29 per equity share, a 11,56% increase from the previous close.
Written By Fazal Ul Vahab C H
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
Start Your Stock Market Journey Today!
Want to learn Stock Market trading and Investing? Make sure to check out exclusive Stock Market courses by FinGrad, the learning initiative by Trade Brains. You can enroll in FREE courses and webinars available on FinGrad today and get ahead in your trading career. Join now!!
