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Indian Metals spurts after pollution board's nod for mines

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Capital Market
Last Updated : Jun 23 2017 | 11:47 AM IST

Indian Metals & Ferro Alloys was locked at 5% upper circuit at Rs 473.55 at 11:10 IST on BSE after the company announced that the State Pollution Control Board has reinstated operation of two mines.

The announcement was made during market hours today, 23 June 2017.

Meanwhile, the S&P BSE Sensex was down 68.07 points, or 0.22%, to 31,222.67. The S&P BSE Small-Cap index was down 238.54 points, or 1.53%, to 15,370.95.

High volumes were witnessed on the counter. On the BSE, 41,667 shares were traded in the counter so far, compared with an average volume of 18,096 shares in the past one quarter.

The stock was locked at a high of Rs 473.55. The stock had hit a low of Rs 456.20 so far during the day. The stock had hit a 52-week high of Rs 823 on 21 March 2017. The stock had hit a 52-week low of Rs 130.05 on 24 June 2016.

The stock had underperformed the market over the past one month till 22 June 2017, rising 1.25% compared with Sensex's 2.35% gains. The scrip had also underperformed the market in past one quarter, dropping 41.69% as against Sensex's 7.28% rise. The scrip had, however, outperformed the market in past one year, jumping 228.6% as against Sensex's 16.91% rise.

The small-cap company has equity capital of Rs 26.98 crore. Face value per share is Rs 10.

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Indian Metals & Ferro Alloys (IMFA) announced that the State Pollution Control Board has reinstated the 'consent to operate' for both of company's Sukinda and Mahagiri mines with immediate effect and valid as before until March 2021.

On 11 April 2017, the company had said that following an inspection of Sukinda & Mahagiri mines on 22nd March 2017, the State Pollution Control Board had issued a notice pointing out certain non-compliances.

Subsequently, the consent to operate (CTO) for both mines had been withdrawn. While mining operations had been stopped with effect from 11 April, there was no immediate impact on its ferro chrome operations. The company had said it was addressing all issues which have been pointed out and expect to revive the CTO in due course.

Indian Metals & Ferro Alloys reported net profit of Rs 174 crore in Q4 March 2017 compared with net loss of Rs 37.29 crore in Q4 March 2016. The company's net sales spurted 188.5% to Rs 588.20 crore in Q4 March 2017 over Q4 March 2016.

Established in 1961 in the Eastern State of Odisha known for its rich natural resources, IMFA is a fully integrated producer of ferro alloys.

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First Published: Jun 23 2017 | 11:28 AM IST

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