National aluminum q3fy18 results show exception item of 801 crore, this is rather very big amount. I could not find any explanation as to the source of this exceptional item. Anyone in know of this can help.
Thanks
National aluminum q3fy18 results show exception item of 801 crore, this is rather very big amount. I could not find any explanation as to the source of this exceptional item. Anyone in know of this can help.
Thanks
check pt2 below mentioned in the results pdf
(2) Dispute with the Department of Water Resources, Govt. of Odisha over interest claim on water charges dues have been settled during the year. In terms of the settlement,
the Company has paid Rs.58.18 crore discharging the liability accrued till 31.10.2017. Consequent to the settlement excess liability of Rs. 785.71 crore provided for in the
books till that date has been written back and considered as an exceptional item.
Can some experts throw light on the recent developments for Vedanta (Tuticorin plant shutdown) and impact on Copper supply/shortage in India and potential impact to Hind Copper. thank you.
Disc : invested in Hind Copper
I recently went through Vedanta numbers in detail for the impact of Sterlite shut down. Copper contributes 25% to top line but at the bottom line the contribution trickles to just 1000Cr comparing to the net bottom line of 13kCr. Hence impact to EPS is less. Even if we discount this, PE works out less than 10x hence attractive. And the company has faced same issue in the past too and has restarted capacity after resolving the pollution issues. Which is additional upside to EPS.
Discl invested in family account, from Tamil Nadu
To my knowledge sterlite copper used to supply 36% of india Needs and rest was exported.
India Needs to import now. At global level India makes 5% of the copper. After this shutdown it decreases to 4%.
When i searched for global demand and supply of copper, i could see article that in 2020 world may see demand going above supply due to the higher copper usage in EV’s and other uses.
Not sure how this demand supply scenario plays out now.
@jitenp , if can you give your view on copper supply demand scenario in world and India.
News on Hindustan copper -
Disc - Invested in Hind. Copper at higher level
Hi Jiten, Most of the textile stocks are beaten down severely, good names like ICIL are down by 70% from recent highs. Is it good time to consider and start looking at textile sector ? Also in the last budget we saw good subsidies and allocation for the sector. Various headwinds (US pricing pressure, GST dampness) seems to be easing. Pls share your view.
Summary of current situation with regards to copper prices from Wall Street Journal
Adding the link for World Bank report on Commodities, Thanks to @Yogesh_s
http://pubdocs.worldbank.org/en/271041524326092667/CMO-April-2018-Full-Report.pdf
This PDF has forecast of Copper and Aluminium prices for next 3 yrs. and long term (2025,2030)
The report indicate 10 - 11% increase in 2018 in prices of copper and aluminium vs 2017. Also, expect the increased prices to remain stable for subsequent 3 yrs. (2019-2021) on account of demand scenario.
I would be thankful to the fellow boarders if you can throw some light on following aspects -
Disc - This is just a forecast from a report on World Bank website, There must be a accuracy related caveat to this forecast as it might not have factored in unforeseen event such as extreme adverse geopolitical situation. Invested in Nalco & Hind. Copper
Some news exerts for the interview with Nalco Mgmt.
Another similar article from moneycontrol on the same topic - management’s views and plans
Another excellent article on Pollution/Green aspects of Aluminium production. It also covers the new sectors adopting the use of aluminium
Textile companies margins are severely under pressure. I would definitely keep in radar as stock prices have fallen a lot.
Ferro chrome stocks are at very interesting levels. Have corrected a lot. Prices of ferro chrome is quiet decent. Am adding more.
Hi Jiten,
I learnt many things from your basket approach in cyclicals. Not a stock recommendation but would this basket good IMFA, Balasore alloys & Maithan alloys?
Disc: Holding Maithan alloys and want to add IMFA and Balasore in PF
Have lightened up on cement basket. I see some more troubled time in short term. Next 1 year. It might be a good time to start adding after 6 months.
Ferro-chrome supply tightens
Meanwhile, Ningxia Tianyuan’s 16,000 tpm ferro-chrome production line halted on May 18, a source at the company told Metal Bulletin. The producer is now operating at 30% of its ferro-chrome production.
The production stoppage is likely to last up to two months until mid-July, according to the company source.
This adds to the recent production cuts of around 50,000 tpm in major ferro-chrome production hubs of Inner Mongolia, and over 40,000 tpm curtailed in other regions, including Sichuan and Guizhou.
Supply in China’s spot market has noticeably tightened, market participants said, with prices for the material rebounding to 7,300-7,400 yuan ($1,141-1,156) per tonne on Friday June 15, up from the lows seen in early May of 6,850-7,000 yuan, which were last seen in late June 2017, according to Metal Bulletin’s historical data.
Some market sources told Metal Bulletin that Ningxia’s recent output reductions, both in manganese flake and ferro-chrome, are linked to China Huarong Asset Management being under investigation for graft. The company is alleged to be Tianyuan Ningxia Manganese Industry Co’s (TMI) financial backer.
Hi,
Can you a pointer on any websites where i can track ferro chrome prices? If there are charts even better.
Regards
Madhavan.
Friends just came across interview of Kenneth Andrade on YouTube. There are some important points in it for cyclical industry in it.