IMFA posts Rs 100-cr net profit in April-June quarter of FY18

Last year, the company bled a loss of Rs 30 cr in the same quarter

Leading ferro chrome producer Indian Metals & Ferro Alloys Ltd (IMFA) has recorded a resilient performance in the April-June quarter of the current financial year 2017-18, clocking a net profit of Rs 99.92 crore. Last year, the company bled a loss of Rs 30.35 crore in the corresponding period.

The company's revenue surged 68.3 per cent in the period under review as it grew from Rs 253.29 crore to Rs 426.31 crore. Exports zoomed 73 per cent in this period, rising from Rs 217.42 crore to Rs 376.84 crore.

IMFA got a breather towards the end of the quarter as its captive mining operations at Sukinda and Mahagiri resumed operations on June 23, following an order issued by the state pollution control board allowing the firm to begin work at both units again. The order is valid until March 2021.

Subhrakant Panda, managing director & chief executive officer, IMFA said: "The first quarter of FY18 saw a significant correction in ferro chrome prices, after the long-term contracts were finalised. Conversely, spot prices have moved up after the finalisation of Q2 contracts. However, we see tremendous value in long-term contracts as they provide off take assurance and better price realisation. While the unfortunate closure of mining operations has had an impact, we are working hard to contain the fallout and minimise the loss in terms of production."

IMFA's ferro chrome production went up marginally by 2 per cent, from 50,592 tonnes to 51,798 tonnes.