Leading producer of Ferro chrome Indian Metals & Ferro Alloys Ltd (IMFA) has seen its exports zooming by 73 % in the April-June quarter of 2017-18. Exports in the said period rose sharply from INR 217.42 crore to INR 376.84 crore.
The company’s revenue surged 68.3 % in the period under review as it grew from INR 253.29 crore to INR 426.31 crore. Despite the closure of its key captive chromite mines for most part of Q1, IMFA bounced back from a loss making phase of Q1 in FY17 to clock a profit of INR 99.92 crore in the comparable quarter of this fiscal. In the same period of FY17, the Ferro chrome maker had suffered a loss of INR 30.35 crore.
IMFA got a breather towards the end of the quarter as its captive mining operations at Sukinda and Mahagiri resumed on June 23 after the consent to operate was reinstated. The order from the State Pollution Control Board is valid till March 2021.
Subhrakant Panda, managing director & chief executive officer, IMFA said, “The first quarter of the current fiscal saw significant correction in Ferro chrome prices though this came about after long-term contracts were finalized, conversely, spot prices have moved up after finalization of Q2 contracts. However, we see tremendous value in long term contracts as they provide off take assurance and, on average, better price realization. While the unfortunate closure of mining operations has had an impact, we are working hard to contain the fallout and minimize the loss of Ferro chrome production.”
IMFA’s Ferro chrome production went up marginally by 2 % from 50,592 MT to 51798 MT.
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