Leading ferro alloy producer IMFA records 17 per cent net profit in Q3

Net up to Rs 74.74 crore from 63.87 crore in the last fiscal.

By Chitta Ranjan Beura

Bhubaneswar, Jan. 30: India’s leading ferro alloys producer Indian Metal and Ferro Alloys Limited (IMFA) has registered a net profit of Rs 74.74 crore for the third quarter ended December 2017, up 17 per cent over the corresponding period profit of Rs 63.87 crore in the last fiscal.

The company’s revenue has also registered a higher growth of 4.6 per cent to Rs 483.65 crore during the quarter.

According to a company statement, ferro chrome production was at 63,194 tonnes in the December 2017 quarter as against 64,641 tonnes in the corresponding quarter.

There is, however, a slight decline in sales and power generation. The company reported sales of 61,041 tonnes as against 64,,034 tonnes in the corresponding period last year. Similarly, it power generation was recorded at 205 million units (MU) against 284 MU during the corresponding period last year.

Notably, IMFA has manufacturing complexes in Therubali and Choudwar. Both the units have captive power generation of 261 MW (including 3 MW solar) and captive chrome ore mines in Sukinda, Mahagiri and Nuasahi.

“The company said project work for additional 1.5 MW solar power plant at Therubali is in progress. Underground mines development is on track to sustain and eventually enhance ore raising,” the company said.

Commenting on the performance, IMFA managing director & CEO, Subhrakant Panda said the company’s fully integrated business model is very resilient and 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,” said Mr Panda.