The Business Bytes
MUMBAI, MAY 23, 2024 (TBB BUREAU): Indian Metals & Ferro Alloys Ltd (IMFA), a pioneering name in the nation’s ferro alloys sector since its establishment in 1961, has unveiled its stellar financial performance for the fourth quarter (Q4) of the fiscal year 2023-24 (FY24), ending on March 31, 2024.
Breaking all previous records, IMFA reported remarkable revenue of Rs 700.56 crore, accompanied by an impressive EBITDA of Rs 135.21 crore in Q4FY24, reaffirming its position as a leader in the fully integrated production of ferro alloys. During the quarter under review, IMFA’s profit after tax (PAT) saw a notable increase, reaching Rs 82.65 crore compared to Rs 63.65 crore in the corresponding period last year, marking a robust growth of 11.80 percent. Additionally, exports experienced a positive uptick, rising by Rs 27.40 crore to Rs 630.77 crore in Q4FY24, up from Rs 603.37 crore in Q4FY23..
In the fiscal year 2024, IMFA witnessed significant growth across key financial metrics. Revenue surged to Rs 2780.17 crore from Rs 2676.39 crore in FY23, highlighting sustained momentum in business performance. EBITDA also demonstrated substantial growth, escalating from Rs 514.48 crore in FY23 to Rs 648.57 crore in FY24. Moreover, the company’s PAT surged from Rs 225.73 crore to Rs 390.48 crore in FY24, underscoring its robust financial health and operational efficiency. Notably, exports for the fiscal year amounted to Rs 2597.12 crore, showing an upward trajectory from Rs 2522.67 crore recorded in FY23.
Among the notable business highlights of the quarter, IMFA achieved a significant milestone as its Chrome Ore raising surpassed the 6 lakh tonnes mark for the first time, indicating robust operational efficiency and resource management. Additionally, the company received a substantial sum of Rs 132 crore as part compensation for the Utkal ‘C’ Coal Block, further bolstering its financial reserves.
In a strategic move towards diversification and optimal utilization of resources, IMFA announced its foray into the Ethanol Business, leveraging surplus land and bulk material handling capacity. This expansion initiative aligns with the company’s commitment to exploring new avenues for growth while maintaining a strong focus on its core competency in smelting.
Reflecting on the stellar performance and future prospects, Subhrakant Panda, Managing Director of IMFA, expressed his satisfaction, stating, ” “Excellent operational performance during the year with highest ever ferro chrome production, chrome ore raising, and captive power generation set the stage for a strong financial performance. We are poised to embark on our expansion and diversification plans on the back of a robust Balance Sheet with zero debt, and this will create substantial value in times to come.”
Addressing the prevailing market dynamics, Panda highlighted the potential impact of geopolitical tensions while expressing optimism driven by economic stimulus measures announced by the Chinese Government. He emphasized China’s status as a comparatively high-cost producer of ferro chrome, providing a favorable pricing environment. Furthermore, India’s ambitious infrastructure focus, backed by substantial capital expenditure, is expected to drive demand for stainless steel and, consequently, ferro chrome.
