Indian Metals & Ferro Alloys Ltd (IMFA), the leading ferrochrome producer listed on BSE and NSE posted 17% growth in its net profit in the October-December quarter of this fiscal. The company’s profit after tax (PAT) rose from INR 63.87 crore to INR 74.74 crore in the period under review.
Total revenue of the company moved up by 4.68 % from INR 462 crore to INR 483.65 crore.
IMFA said its performance was on the back of improved realisations due to higher benchmark prices for the December quarter.
Subhrakant Panda, managing director & chief executive officer, IMFA said, “Improved realisations due to higher benchmark price for the third quarter have had a positive impact. While our fully integrated business model is very resilient, it is obviously not immune to price volatility. In this context, while contract prices for the ongoing fourth quarter have settled lower, we see strength in spot prices which suggests a trend reversal going ahead. Moreover, we believe ferrochrome pricing is likely to move in a narrow range over the next several quarters with sustained demand and a strong Rand helping prices.”
Exports in value terms in the December quarter, rose 6.46% from INR 381.93 crore to INR 406.64 crore.
IMFA’s ferro chrome production and overall sales dipped slightly in the third quarter. Ferro chrome output was slightly down from 64,641 tonnes to 63,194 tonnes. Sales fell too, from 64,034 tonnes to 61,041 tonnes.For the nine-month period (April-December), IMFA’s net profit zoomed 140% to Rs 182.03 crore from Rs 75.83 crore in the year-ago period. Revenue was up 20% from INR 1102.87 crore to INR 1325.99 crore.
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