IMFA logs ten-fold rise in net profit at Rs 5.12 cr in July-Sept qtr

Leading producer of value added ferro chrome Indian Metals & Ferro Alloys Ltd's (IMFA) net profit for the quarter ended September 30 jumped 800 per cent to Rs 5.12 crore over Rs 0.57 crore in the comparable period of last fiscal.

The spike in net profit has come mainly on the back of higher production and lower power cost, said Prem Khandelwal, chief financial officer and company secretary, IMFA.

Total revenue for the July-September quarter fell marginally to Rs 338 crore from Rs 348 crore. The company attributed this to lower volume sales. Exports in the period rose from Rs 281 crore to Rs 318 crore, posting a growth of 13.16 per cent.

Commenting on the company's performance, Subhrakant Panda, managing director and chief executive officer, IMFA said, "We have performed creditably in a tough environment for commodities by maximising output and bringing down raw material costs as well as interest outgo even as we provided for certain exceptional items. While the short term outlook remains difficult, we believe a gradual recovery is imminent."

IMFA's ferro chrome output moved up by 67 per cent to reach 59,701 tonne. Power generation in the same period stood at 268 million units, higher by 61 per cent over the corresponding period of 2014-15.

In the April-September period, IMFA's topline grew 4.4 per cent from Rs 649 crore to Rs 678 crore. Exports, in this period, witnessed a spurt of 21 per cent, increasing from Rs 507 crore to Rs 617 crore.

With manufacturing complexes at Choudwar (near Cuttack) and Therubali in Rayagada district, IMFA has the capacity to produce 275,000 tonne of value added ferro chrome per annum. It owns captive chromite mines at Sukinda, Mahagiri and Nuasahi. IMFA also has captive power plant with capacity of 258 Mw.