Leading ferro chrome producer Indian Metals & Ferro Alloys Ltd (IMFA) posted a loss of Rs 33.07 crore for the quarter ended September 30, 2019 as challenging market conditions and depressed ferro chrome prices weighed on.
IMFA's muted performance in Q2 of this fiscal is in contrast to the net profit of Rs 10.66 crore it achieved in the comparable period of last fiscal year. The company's revenues declined 12.66 per cent from Rs 445.93 crore to Rs 389.47 crore. IMFA's exports suffered as well, shrinking 12 per cent from Rs 401.06 crore to Rs 352.05 crore in the period under review.
Commenting on the performance, Subhrakant Panda, Managing Director, IMFA said, “Market conditions are extremely challenging at the moment with prices being at unviable levels. While there have been significant production cutbacks all over the world, our fully integrated business model, low gearing and
long term marketing arrangements with leading customers has helped us sustain. As such, especially given the reported finalisation of a ‘mini deal’ between the US & China, we expect market conditions to start improving with pick up in prices to follow”.