Report by OD bureau; New Delhi: Indian Metals & Ferro Alloys Ltd (IMFA; established 1961), India's largest, fully integrated producer of value-­added ferro chrome, today announced results for the first quarter ended 30th June 2012.

The Company posted   an   increase of   10.5% in   net sales during Q1FY13 to  Rs  287.88crores  as compared to Rs260.41crores in Q1FY12.

Operating profit during the quarter was Rs90.69crores as compared to Rs71.55crores in   Q1FY12, a growth of 26.8% attributable to better prices and currency devaluation.

EBIDTA margin for Q1FY13 stood  at  30.4% as  compared to 26.4% in  Q1  FY12. Rise  in  financial  charges on account of capitalisation of  30MW  dual fuel  power plant and   MTM on  outstanding hedging impacted the bottom line which declined by 24% to Rs   28.45 crores.

Exports accounted for nearly 84% of the company's net  sales during the quarter.  As   a   result, improvement in ferro chrome prices  along  with  rupee  devaluation  helped  boost  performance.  The 260   MW captive power  plant is expected to be commissioned   during   Q2FY13   following   which   total   power   generation  capacity  will  stand  at  258  MW.

Utkal Coal Ltd, an SPV in which IMFA has 74% stake, is expected to be operational before the end of calendar year and will provide a significant boost to performance going ahead.

Commenting on the Q1FY13 results, Mr Subhrakant Panda, Managing Director said: "Despite it being a tough quarter for commodities due to the continuing crisis in the Euro Zone and slowdown in China, we delivered a heartening performance on the strength of our integrated business model; of course, the rupee devaluation also bolstered realisations. We are on the cusp of commissioning the new 120 MW captive power plant and starting operations at the captive coal block (being developed by Utkal Coal Ltd) which will provide a significant boost to performance going ahead."