IMFA posts 14% higher PAT

Earns Rs 15 cr profit for quarter ended December 2012 as against Rs 13.16 cr recorded in same period last fiscal

Indian Metals & Ferro Alloys Ltd (IMFA), the country’s leading producer of value added ferrochrome, has earned Rs 15.06 crore profit after tax (PAT) for the quarter ended December 2012, up by 14 percent from Rs 13.16 crore PAT posted in the third quarter of the previous year.

During the period, the company’s topline was Rs 311.50 crore, which is marginally 2 per cent higher than Rs 306.30 crore reported in the previous comparable period.

However, its earnings before interest, debt, tax and amortisation (EBITDA) fell to Rs 58.28 crore during the last quarter against Rs 67.36 crore in Sep-Dec 2011.

On a sequential basis also, the company’s EBITDA in the third quarter was lower than Rs 63.41 crore seen in the second quarter of the current fiscal.

“The performance during the quarter was creditable given the steep increase in input costs and additional interest and depreciation costs on account of the commissioning of unit 1 of the new captive power plant (CPP),” said Subhrakant Panda, managing director, IMFA.

The company hopes to contain losses in the coming financial year.

“While the resumption of operations at the Nuasahi Chromite mines will help contain costs, the full benefit of the new CPP will accrue from the next financial year,” Panda added.

The interim captive power generation capacity of IMFA now stands at 198 MW and it is expected to go up to 258 MW when the second unit will be commissioned in February. The company invests a lot in power generation as electricity accounts for 40 per cent cost of production of ferrochrome, which is a key input for stainless steel.