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Indian Metals & Ferro Alloys Ltd.

BSE: 533047 Sector: Metals & Mining
NSE: IMFA ISIN Code: INE919H01018
BSE 14:49 | 28 Feb 195.85 -3.50
(-1.76%)
OPEN

196.00

HIGH

196.20

LOW

191.00

NSE 14:43 | 28 Feb 196.10 -3.45
(-1.73%)
OPEN

196.10

HIGH

199.55

LOW

191.05

OPEN 196.00
PREVIOUS CLOSE 199.35
VOLUME 812
52-Week high 279.15
52-Week low 136.00
P/E
Mkt Cap.(Rs cr) 528
Buy Price 195.70
Buy Qty 61.00
Sell Price 196.45
Sell Qty 5.00
OPEN 196.00
CLOSE 199.35
VOLUME 812
52-Week high 279.15
52-Week low 136.00
P/E
Mkt Cap.(Rs cr) 528
Buy Price 195.70
Buy Qty 61.00
Sell Price 196.45
Sell Qty 5.00

Indian Metals & Ferro Alloys Ltd. (IMFA) - Chairman Speech

Company chairman speech

Resilient and forward-looking

Dear Shareholders

Before going into the details of our performance let me first lay out the macrolandscape that has a bearing on our broad strategies and their implementation. Indiacontinues to remain in the vanguard of global economic growth with supportive fiscal andmonetary policies. The Government of India's continued focus on infrastructure developmentand indigenous entrepreneurship under the ‘Make in India' initiative are translatinginto encouraging outcomes. It is pertinent to mention in this context that our country hassignificantly improved its ranking in the World Bank's Ease of Doing Business Report 2019.There are challenges and downside risks but the long-term growth story of our countrycontinues to be optimistic.

Now let me shed light on our performance during FY 2018-19 which was unfortunatelyaffected by some unforeseen challenges. Our ferro chrome production was impacted as thelargest furnace at Therubali Odisha remained out of operation for around four months onaccount of a shell puncture as a result of an unplanned shutdown following an agitation bysome outsiders. Moreover our ‘mark to market' provision on foreign currencyborrowings affected our bottom line as the INR depreciated; however taking advantage offavourable currency movement we have now unwound most of the exposure. Finally the awardin the Bilateral Investment Protection Treaty arbitration with the Government of Indonesiawent against us consequent to which we had to write off the investment and provide foradditional expenses which dented our profitability.

Despite such adversity our integrated business model and deep market insight enabledus to report a resilient performance. We reported revenue of Rs. 1633.78 crores in FY2018-19 as against Rs. 1769.26 crores in FY 2017-18 while EBITDA stood at Rs. 284.58crores (previous year: Rs. 461.03 crores). We reported a PAT of Rs. 11.04 crores in FY2018-19 (previous year: Rs. 186.62 crores) resulting in earnings per share of Rs. 4.09(previous year: Rs. 69.18). Total ferro chrome production was 216046 tonnes as comparedto 234443 tonnes the previous year with commensurate power generation of 914.60 millionunits (previous year: 946.05 million units) and chrome ore raising of 518615 tonnes(previous year: 550670 tonnes).

We are strengthening our core capabilities to produce significant value for the longterm and in this context are evaluating acquisition of distressed assets as well asgreenfield expansion. Meanwhile we have restarted the 48 MVA furnace at Therubali afterrelining and shell replacement and attended to other areas for enhanced efficiency andoutput. As always power generation and mining output will be synchronised to captiverequirement with some outside procurement if necessary. We also enhanced our commitment torenewable energy with the commissioning of an additional 1.5 MW solar power project atTherubali taking the total installed capacity to 4.5 MW.

At IMFA we upskill our employees through need-based functional and interpersonaltraining to equip our teams to deliver on our vision and strategies. We are also growingthe scale and scope of our Quality Improvement Programmes (QIPs) making it an integralpart of our organisational culture. These programmes demonstrate our focus on operationalexcellence and employee engagement. I am happy to share that we have been featured inFortune India's prestigious list of India's largest midsize companies ‘The Next 500'for 2018; at 20th overall and 2nd in the Metals & Mining sector IMFA is the highestranked Odisha-based company in the list of prominent businesses.

IMFA was built on the foundation of enduring values of integrity pursuit ofexcellence teamwork and social commitment. These intangibles are the real catalysts thatproduce measurable outcomes for our Company on all fronts.

Going forward we will continue to strengthen our corporate governance and act as achange agent for society. Our focus is to continue the good work of the Bansidhar &Ila Panda Foundation (BIPF) in the sphere of education healthcare livelihood and water& sanitation. As a part of our broad sustainability agenda we are also workingproactively to reduce our carbon footprint and help protect the environment.

Global demand for stainless steel is expected to witness consistent growth with risingdemand from end-use industries such as automotive oil & gas and construction amongothers. Consequently while the ferro chrome industry faces some short-term challengesthe long-term outlook remains positive. As a leading producer of ferro chrome in thecountry we remain well placed to seize any opportunity that comes our way and benefitfrom the nation's march from a developing economy to a developed one.

As we move ahead with renewed optimism and greater resilience I thank our teammembers customers business partners shareholders and the larger community ofstakeholders for their support and faith in our vision.

Thank you.

Subhrakant Panda

Managing Director