IMFA bets on higher ferro chrome output to offset raw material volatility in second half of FY27

Mumbai: The benefits of incremental output in the second half of the fiscal will help offset the impact of raw material volatility for Indian Metals and Ferro Alloys (IMFA), managing director Subrakant Panda said.

“Even as the operating environment remains slightly tight, we have the volumes to more than make up for it,” Panda told ET in an exclusive interaction.

The country's largest producer of value-added ferro chrome reported more than 50% year-on-year growth in profit for the September quarter, supported by a 35% rise in revenue. Output stood at 86,652 tonnes, up 32% from a year earlier.


“We are very confident about the second half of the year…the ongoing quarter will be the first quarter where we will cross 100,000 tonne in output,” Panda said.

The company has guided for 380,000 tonnes of output in the current fiscal and has already produced 167,342 tonnes of ferro chrome during April-September. Earlier this year, IMFA completed the acquisition of Tata Steel's ferro chrome facility in Kalinganagar, with a capacity of 100,000 tonnes, which will be expanded to 150,000 tonnes.

“Our volumes, and the fact that the main raw material, chrome ore, is something that we have under control is what sets us apart,” Panda said.

Chrome ore can account for up to 50% of total raw material costs in ferro chrome production. The company produced 144,697 tonnes of chrome ore during the quarter and is focused on increasing output from its captive mines.

Price trend

Average ferro chrome prices corrected to 116,486 per tonne in the September quarter from 119,888 per tonne in the June quarter. However, Panda does not expect a significant decline from current levels.

“We believe there is not much downside now for the simple reason that there are cost pressures on non-integrated producers,” he said.

While there could be a temporary blip, prices are likely to rebound, he added.