IMFA Q3 net declines 27% to Rs 11 crore

KOLKATA: IMFA, one of the largest producers of value-added ferro chrome, has reported a 27% decline in net profit in the quarter ended December 31, 2014 (Q3FY14) to Rs 10.98 crore against Rs 15.06 crore in same period last year due to higher depreciation and finance costs on account of recently commissioned captive power plants. The company's revenue increased 17% to Rs 364.06 crore against Rs 311.50 crore in the previous corresponding period, while exports increased by 26% to Rs 286.13 crore during the quarter under review against Rs 225.32 crore in same period last year.

IMFA's net profit for the nine month period ended December 2014 dropped by 46% to Rs 35.17 crore against Rs 65.28 crore in same period last year. Revenue increased by 11% to Rs 993.69 crore against Rs 894.21 crore in same period last year. Exports increased by 19% to Rs 809.38 crore against Rs 679.43 crore in April-December 2013.

Commenting on the results, Subhrakant Panda, managing director & CEO, IMFA said: "The quarterly performance is in line with our expectation with revenue rising 17% and operating profits by 44% despite the difficult circumstances. However, net profit has been impacted due to higher depreciation and finance costs on account of recently commissioned captive power plants."

Mr Panda added: "The 48 MVA at Therubali which was hitherto idled was switched on in mid-January and operations at the Mahagiri chromite mines have also restarted upon receiving permission from MoEF. As such, volume will increase going ahead and there will also be a positive impact on margins."

In the context of grant order which is awaited for Utkal 'C' Block awarded to Utkal Coal Ltd (UCL), Mr Panda said: "We are fully compliant with the checklist prepared by state government as regards the coal block allotted to Utkal Coal Ltd and expect to receive grant order soon."