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Ferrochrome producer Indian Metals and Ferro Alloys (IMFA) has posted 20 per cent decline in earning before interest, taxes, depreciation and amortisation (EBITDA) in the quarter ending June 2014 as poor global demand hurt its profit margin.
During the same period, the company exported ferrochrome worth Rs 223.60 crore compared with Rs 248.10 crore in the same period last year. In the first quarter, total revenue of IMFA had dipped to Rs 301.30 crore, from Rs 306.90 crore reported in the previous comparable quarter.
We are currently in a very challenging environment with lower ferrochrome realisation and cost pressures negating higher production and sales resulting in sub-optimal results. Our fully integrated business model is fairly resilient and with China coming out of a dip along with better economic environment domestically, we expect things to improve going ahead, said Subhrakant Panda, managing director and chief executive office (CEO) of the Bhubaneswar-headquartered firm.
During the period, the company produced 51,704 tonne ferrochrome, 12 per cent higher than a year ago period. It also tested both units of 120 Mw captive power plant and generated 243 million unit electricity in the April-June period, IMFA said in a statement.
Ferrochrome rates have come down in international markets due to poor demand from major producer China, top producer of stainless steel. Ferrochrome is blended with molten iron to produce stainless steel.
