IMFA net profit dips 27%

Net profit of ferrochrome maker Indian Metals and Ferro Alloys (IMFA) declined by 27 per cent to Rs 10.98 crore in October-December quarter, compared with Rs 15.06 crore achieved in the year ago period as maintenance of existing manufacturing facilities and expenses on captive power plant ate away profits despite better topline, the company said in a release.

"The quarterly performance is in line with our expectation with revenue rising 17 per cent and operating profits by 44 per cent which is remarkable given the difficult circumstances. However, net profit has been impacted due to higher depreciation and finance costs on account of recently commissioned captive power plants," said Subhrakant Panda, Managing Director and Chief Executive Officer (CEO) of IMFA.

The net profits is also lower than July-September quarter of current fiscal, which was Rs 14.12 crore.

However, the company witnessed growth in export revenue, which rose by 26 per cent to Rs 286.13 crore during the period, as a softer rupee against the dollar provided the benefit.

In the first nine month of the 2013-14, the company witnessed 19 per cent rise in earnings before interest, depreciation, tax and amortisation (EBITDA). During April-December, the EBIDTA grew to Rs 257.30 crore against Rs 215.19 crore reported in the same period last year.