Indian metals and ferro alloys Ltd (IMFA), a leading producer of integrated ferro chrome has posted a net profit of INR 42.31 crore for the quarter ended September 30, on higher output and firm ferro chrome prices. IMFA has turned in profit in Q2 after posting losses for two straight quarters.
In the corresponding quarter of FY16, IMFA had managed to log profit of only INR 3.46 crore. The company’s turnover in July-September period stood at INR 387.58 crore against INR 340.12 crore in the same period of last fiscal. Exports posted a marginal rise from INR 318.4 crore to INR 323.70 crore in the period under review.
There has been a broad rally across commodities and ferro chrome too, has witnessed a turnaround after prices had hit multi-year lows.
Subhrakant Panda, managing director & chief executive officer, IMFA said: “After a turbulent period which saw a lot of turmoil and disappointing numbers, the ferro chrome industry is sparkling once again. Demand has picked up and unviable capacity has been shuttered worldwide thus bringing about a much needed re-balancing. Spot prices are running even higher than the recently concluded quarterly prices indicating there is some more steam left in the rally. Having advanced maintenance shutdowns to earlier in the year, we are now focused on maximising output and taking full advantage of the price rally.”
In the April-September period of this fiscal, IMFA recorded profit after tax of INR 11.96 crore loss in the comparable period of 2015-16. Exports in this period, dipped from INR 616.79 crore to INR 541.12 crore. Total revenue, too declined to INR 640.87 crore from INR 683.67 crore.
IMFA’s ferro chrome production in Q2 of this fiscal was up two per cent from 59701 tonne to 60836 tonne. Sales, went up too, by 25 per cent to 61762 tonne.
The Bhubaneswar-headquartered firm has manufacturing complexes at Therubali and Choudwar in Odisha. IMFA owns chrome ore mines in Sukinda, Mahagiri and Nuasahi and has a captive power generating capacity of 258 Mw. It has a nameplate capacity of 275,000 tonne per annum of value added ferro chrome.
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