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."