Leading ferro chrome producer Indian Metals & Ferro Alloys Ltd (IMFA) has seen its net profit nosediving by 169.6 per cent for the quarter ended June 30 this year to Rs 10.66 crore.
In the comparable period of last financial year, the BSE and NSE listed company had clocked a net profit of Rs 28.74 crore.
IMFA attributed the plunge in net profit to the stress surrounding the ferro chrome industry as a fallout of global trade tensions.
Subhrakant Panda, managing director of IMFA, said: “The ferro chrome industry is going through a difficult time on account of trade tensions globally so our performance during the quarter under review is especially noteworthy. We were able to leverage our fully integrated business model to eke out a profit. While the short term outlook continues to be challenging on account of the international benchmark price having come down, we are confident of our ability to ride out volatility on account of our inherent resilience. There is a slight trend reversal in prices and, barring unforeseen circumstances, we expect the situation to improve from here.”
IMFA's net profit slump was despite the growth in topline and exports. The ferro chrome producer's revenues rose 7.48 per cent from Rs 412.53 crore to Rs 445.93 crore. Exports grew 12.56 per cent by value to Rs 432.28 crore from Rs 377.97 crore in the period under review.
On operational parameters, IMFA registered growth in ferro chrome production, sales and power generation. Ferro chrome production spiked by 19.05 per cent from 46766 tonnes to 55676 tonnes. The company's total volume sales increased 24.76 per cent to 60612 tonnes from 48580 tonnes.