Equity Alert: Hindalco up on reports of new differential pricing

[K.Karthik Raja]

Equity Alert: Hindalco up on reports of new differential pricing
MUMBAI--12:30PM--Hindalco Industries shares were up nearly 1% at
174.50 rupees, in an otherwise weak market, on reports the company has
changed its pricing mechanism for copper in the wake of soaring crude
oil prices.
According to a report in the Business Standard newspaper, the
company is no more going by uniform pricing mechanism and is deciding
prices according to distance between its smelter and the delivery
destination.
The company is levying 2 rupees per 1 kg freight charges across
the country, after rise in oil prices as fuel cost accounts for 10-12%
of the price of copper.
This will certainly help the company recover lost ground as it is
already under lot of pressure because of the compressing margins. This
apart the firm international aluminium prices will also help it post
good numbers in the next two quarters at least.
Immediate resistance for the share is seen around 179 rupees.