What to expect from Nalco Q2 earnings?

National Aluminium Company (Nalco), the world’s second lowest cost, producer of alumina will be reporting its second quarter earnings on Wednesday, December 14, 2016. It is widely expected that the result would be more or less in line with the street expectations.

Top line and the bottom-line is most likely to see a positive upside for the quarter ending September 30 as both the numbers will be boosted by good volume growth and pricing of the products in the markets.

Revenue is estimated to grow by double digits. However, margins expansion will be a key figure to watch out, given the steep increase in the prices of aluminium globally and even domestically, which has helped company improve its realisations.

Global aluminium prices have seen a big rise  in the past month and half and close to 30 per cent in the last quarter. This is more likely to boost the company financials in the current third quarter.

Commentary from the management on divestment of government stake in the company will also be eyed. Any impact of demonetisation on the business will also be seen. Guidance in terms of demand outlook and pricing will be important to watch.

Anticipating strong set of results Nalco was trading with gains of 5 per cent at Rs 68.30 on NSE.