IMFA Q1 net drops 64% on lower demand for ferro alloys

KOLKATA: Indian Metals & Ferro Alloys Ltd (IMFA), an integrated producer of value-added ferro chrome posted a net profit of Rs 10.07 crore in Q1 ended June 30, 2013 against Rs 28.45 crore in same period last year on the back of slow demand for ferro alloys. IMFA's revenue went up marginally to Rs 306.96 crore during the period compared to Rs 298.58 crore in the previous corresponding quarter.

The company said a second unit of its 2 x 60 MW captive power plant at Choudwar in Odisha was synchronised with the grid on June 30, 2013.With this, IMFA's total captive power generation capacity went up to 258 MW.

While initial teething issues are currently being addressed, both units of the new CPP are expected to operate at optimum capacity by third quarter of the current fiscal, the company said.

It also said transportation of chrome ore from the Nuasahi mines have commenced in July and will have a positive impact on profitability going ahead.

Commenting on the results, Mr Subhrakant Panda, managing director of IMFA said : "These are very challenging times for the ferro alloys industry with growth in major economies faltering thereby stunting demand while costs are also rising.

Under the circumstances, our performance in the first quarter is creditable.

Also, the captive coal mine allotted to us is expected to start operations within this year and will provide a boost to our competitiveness and reliability."