Indian Metals and Ferro Alloys confident of maintaining margin above 20%

Ferrochrome producer Indian Metals and Ferro Alloys (IMFA) is confident of maintaining its EBITDA (earnings before interest, tax, depreciation, and amortisation) margin above 20%.

Subhrakant Panda, Managing Director of IMFA said that while ferrochrome prices softened during the fourth quarter FY24, he sees no room for any further softening. "If anything, there is a chance for upside," he said.

Regarding expansion plans, Panda mentioned a potential delay due to administrative issues in acquiring land. Despite this setback, he assured that the company's ore output would increase from 6.7 lakh tonnes in FY24 to approximately 7.3 lakh tonnes in the next financial year (FY25).

IMFA is exploring alternative strategies to mitigate the impact of any delays in the expansion project.

Panda highlighted IMFA's financial stability, stating, "We are not looking at any equity raise at this point in time." He revealed that IMFA has sufficient internal accruals and cash reserves to fund future investments without the need for additional equity or debt.

He said the production is currently at the optimum level, and hopes to end FY24 at 2.6 lakh tonnes.

The stock has risen more than 132% over the past year.