The Business Bytes
Bhubaneswar, November 7, 2024 (TBB Bureau): Indian Metals & Ferro Alloys Ltd. (IMFA), India’s leading fully integrated producer of ferro alloys, has reported an impressive financial performance for the second quarter (Q2) of the current financial year (FY25), with notable growth in revenue, profitability, and exports for the quarter ending September 30, 2024.
In Q2 FY25, IMFA achieved a revenue of Rs 691.92 crore and an EBITDA of Rs 175.62 crore, representing a strong EBITDA margin of 25.38%. The Profit After Tax (PAT) for the quarter was Rs 132.73 crore, yielding a PAT margin of 18.60%, while the Earnings Per Share (EPS) stood at Rs 24.60 (not annualized). Exports accounted for Rs 652.97 crore, underscoring IMFA’s solid performance in the international market.
When comparing key financial indicators over recent periods, IMFA’s Q2 FY25 revenue reached Rs 691.92 crore, slightly ahead of Q1 FY25’s Rs 662.28 crore and close to Q2 FY24’s Rs 692.61 crore. The EBITDA improved significantly from both Q1 FY25’s Rs 167.31 crore and Q2 FY24’s Rs 150.27 crore. PAT also rose substantially, marking Rs 132.73 crore in Q2 FY25 versus Rs 117.52 crore in Q1 FY25 and Rs 89.96 crore in Q2 FY24. For H1 FY25, IMFA posted cumulative revenues of Rs 1,354.20 crore and exports worth Rs 1,279.94 crore.
Operationally, IMFA’s ferro chrome production for Q2 FY25 stood at 68,248 tonnes, while sales reached 66,951 tonnes. Power generation totaled 277 million units for the quarter, while the company raised 104,327 tonnes of chrome ore.
Commenting on the results, Subhrakant Panda, Managing Director of IMFA, attributed the strong performance to higher output, continued focus on operational efficiency, and stable input and selling costs, which collectively boosted margins. Addressing the global scenario, he noted a marginal drop in stainless steel demand due to economic uncertainties but highlighted China’s recent stimulus measures and an uptick in PMI as encouraging signs for the metals sector. Panda also remarked on the competitive edge that IMFA enjoys due to access to captive ore and a debt-free balance sheet, emphasizing the company’s commitment to leveraging these strengths to maintain superior performance in the current economic climate.
