IMFA ramps up output as ferro chrome demand firms up

The company produced 50,592 tonne of ferro chrome, 63% higher than 30,904 tonne in the October-December period of last fiscal

India's leading producer of value added ferro chrome Indian Metals & Ferro Alloys Ltd (IMFA) has scaled up output buoyed by a rebound in demand for ferro chrome.

In the April-June period of 2016-17, IMFA produced 50,592 tonne of ferro chrome, 63% higher than 30,904 tonne in the October-December period of last fiscal. When compared to the April-June period of last fiscal, the output was 10% higher.

The robust performance in production, however, was not reflected in the company's financials. Revenue at Rs 250.46 crore for the quarter ended June 30 this year was 26.33% lower than Rs 340.01 crore logged in the comparable period of FY15. Sequentially, exports also tanked 27% from Rs 299.25 crore to Rs 217.42 crore.

Commenting on the results, Subhrakant Panda, managing director and chief executive officer, IMFA said, “Coming out of a very bad year which severely affected financial performance, Q1 FY17 witnessed a turnaround as ferro chrome demand recovered and prices improved. While this is not reflected in the reported numbers since quarterly prices were finalised prior to such recovery, we are now in distinctly different territory as compared to the last two quarters. Unsustainable prices brought about a rapid rebalancing which was helped further by stimulus measures in China and appreciation of the Rand. As such, the worst seems to be behind us and, along with operational efficiencies, has resulted in improved performance compared to the preceding quarter. More importantly, we are confident of a sustained recovery going ahead.”

With manufacturing complexes at Therubali (Rayagada) and Choudwar (Cuttack), IMFA has a ferro chrome production capacity of 275,000 per annum. It has a fully integrated business model with captive power generation of 258 MW and captive chrome ore mines at Sukinda, Mahagiri and Nuasahi.