Indian Metals Q3 net dips 9% to Rs 29 cr

Indian Metals and Ferro Alloys, the largest producer of ferro chrome in India, today reported a decline of 9.03 per cent in its net profit at Rs 29.41 crore for the quarter ended December 31, 2010.

The company had posted a net profit of Rs 32.33 crore for the same quarter of 2009-10.

"Net profit during the quarter decreased by 9.03 per cent to Rs 29.41 crore due to non-availability of MAT credit," Indian Metals and Ferro Alloys (IMFA) said in a statement.

However, the company did not specify the reason behind non-availability of Minimum Alternative Tax (MAT) credit.

Net sales of the company during the quarter increased by 12.79 per cent, at Rs 228.43 crore compared to Rs 202.53 crore in the corresponding quarter of last year, the statement added.

"The performance of the last two quarters clearly demonstrates that  the  ferro  chrome  market  has  bounced  back and, in fact, there is a positive bias as far as price outlook in the medium term  is  concerned," IMFA's Managing Director Subhrakant Panda said while commenting on the results.

The company also signed a joint venture agreement with Posco for producing ferro chrome in India and will supply about 85,000 million tonne per annum (MTPA) to the steel giant under a long term contract.

"The formal agreement with Posco is expected to provide a stable platform on the basis of assured offtake," Panda added.

For the nine period between April to December, 2010, net profit of the company has increased five folds to Rs 140.96 crore against Rs 21.92 crore in the same period of 2009-10.

IMFA also expects to commission a 30 Mw power plant in the ongoing quarter, the statement said, while adding that construction of 120 Mw plant is on schedule and targeted for commissioning by March, 2012.

Scrips of the company were traded at Rs 636.35 a piece on the Bombay Stock Exchange, up 2.60 per cent from the previous close.