IMFA Q2 net at Rs 57 crore on rising demand

NEW DELHI: Ferro-chrome producer Indian Metals & Ferro Alloys (IMFA) today reported a profit of Rs 57.24 crore for the second quarter of the current fiscal, as against a loss of Rs 2.02 crore in the year-ago period mainly due to improved demand for its products.

"Increased productivity, along with better realisation has led to better margins," the company said in a statement here.

The company expects strong demand to continue for its metals and ferro alloys in next few months.

"Despite the price volatility in the industry, we now see a strong demand environment building up across the sector and are extremely bullish on an upsurge in the demand. In the coming quarters we intend to consolidate our position in the ferro-chrome segment across the markets," IMFA MD Subhrakant Panda said.

With improved sales of its products, the company saw its net sales surging to Rs 300.32 crore in the reporting quarter as against Rs 116.95 crore in the same period a year ago.

The company had earlier said it is investing Rs 1,000 crore to increase production capacity and enhance captive power generation by 2012 to meet the growing demand.

The company has an annual production capacity of 2.75 lakh tonnes from the present 2.35 lakh tonnes.