IMFA's Q2 performance hit by price volatility

Bhubaneswar: Indian Metals and Ferro Alloys (IMFA) Ltd reported its second quarter (Q2) results for the fiscal year 2017-18 (FY18) today. During the period, revenue of the company grew to Rs 416.03 crore in comparison to Rs 387.58 crore in the corresponding period of 2016-17 fiscal (FY17).

Exports of the company grew to Rs 344.94 crore in comparison to 323.70 crore in FY17.

However, the profit after tax (PAT) declined 82 per cent to Rs 7.37 crore in the second quarter of FY18 from Rs 42.31 crore a year earlier.

Production of Ferro Chrome fell by 4 percent to 58,413 tonnes in the Q2 FY18 in comparison to 60,836 tonnes in Q2 FY17. However, the sales were up by five percent to 65,013 tonnes in Q2 FY18 in comparison to 61,762 tonnes in Q2 FY17.

"Ferro Chrome has been quite volatile and the Q2 FY18 benchmark price was negotiated at a time when sentiments were poor on account of temporary slowdown in offtake from China. While spot prices bounced back subsequently, we were unable to benefit having already finalised the quarterly contracts. Riding on positive sentiments, the pricing of long term contracts in the ongoing quarter is substantially higher and will yield healthy margins. Furthermore, going ahead we expect prices to move within a relatively narrow band," said Managing Director and CEO of IMFA Subhrakant Panda.

Odisha-based Indian Metals and Ferro Alloys (IMFA) mostly exports ferrochrome to the far-East - China, Japan and Taiwan. In India, the company supplies alloy to Jindal Stainless, Shah Alloys and other producers.

Headquartered in Bhubaneswar, IMFA has manufacturing complexes in Therubali & Choudwar in Odisha.