Indian Metals & Ferro Alloys Ltd (IMFA), the country’s leading producer of value added ferro chrome, has posted a net profit of Rs 21.77 crore for the quarter ended September 30 this year against a loss of Rs 8.69 crore logged in the corresponding period of previous fiscal.
Price improvement coupled with rupee depreciation boosted the company's realisations.
On a sequential basis, IMFA’s EBITDA (earnings before interest, taxes, depreciation and amortization) zoomed 132.44 per cent from Rs 27.28 crore to Rs 63.41 crore. EBITDA margins in the period improved from 9.5 per cent to 23.8 per cent.
Commenting on IMFA’s performance, Subhrakant Panda, the company's managing director said, “We have performed creditably in a challenging environment. While the short-term concerns remain, we are confident that our integrated business model along with take-off assurance due to our long-term contracts and joint venture arrangement will see us perform better than our peers. Going ahead, the imminent commissioning of the 120 MW captive power plant and development of the captive coal block will provide a significant boost.”
IMFA’s net sales in the quarter declined marginally by 6.98 per cent to Rs 266 crore compared to Rs 285.97 crore in the year-ago period.
Taking into account the April-September period, the company's net sales rose marginally by 1.4 per cent to Rs 553.88 crore against Rs 546.38 crore posted in the comparable period of 2011-12. Exports accounted for 80 per cent of the company’s net sales.
