Indian Metals & Ferro Alloys Q2 profit slumps 82% to Rs 7.37 crore

Mining News - IMFA recorded exports of Rs 344.94 crore during the quarter under review, which was higher than Rs 323.70 crore worth of exports in same period last year.

IMFA’s net profit was at Rs 107.29 crore in H1FY18 on revenues of Rs 842.34 crore. Compared to this, it had posted a net of Rs 11.96 crore in H1FY17 on revenues of Rs 640.87 crore. The company’s exports touched Rs 721.78 crore in H1FY18 compared to Rs 541.12 crore in H1FY17.

In terms of operation, IMFA reported a ferro chrome production of 58,413 tonne, in Q2Fy18 down 4% from 60,836 tonne in Q2Fy17. Sales were up 5% to 65,013 tonnes, from 61,762 tonne in Q2FY17. The IMFA scrip closed at Rs 639.40 on the BSE on Tuesday, down 11.89% compared to its previous close.

Commenting on the performance, Subhrakant Panda, managing director of IMFA said: “Ferro Chrome has been quite volatile and the Q2 FY18 benchmark price was negotiated at a time when sentiments were poor on account of a temporary slowdown in offtake from China. While spot prices bounced back subsequently, we were unable to benefit having already finalised the quarterly contracts.”

He added that riding on positive sentiments, the pricing of long term contracts in the ongoing quarter is substantially higher and will yield healthy margins. The company also said it expects prices to move within a relatively narrow band, going ahead.