IMFA reports 17.80% drop in net profit amidst lower income and price slippage
IMFA's revenues also dropped from Rs 743.42 crore in the year-ago quarter to Rs 701.73 crore in the current quarter. Subhrakant Panda, attributed it to a decrease in average prices from Rs 131,000 per tonne in Q1 FY23 to Rs 115,000 or Rs 116,000 per tonne in Q1 FY24.
Indian Metals & Ferro Alloys Ltd (IMFA) reported a 17.80 percent decline in its net profit for the June 2023 quarter, amounting to Rs 110 crore. This decrease was primarily attributed to reduced income compared to the corresponding period last year when the company recorded a net profit of Rs 133.83 crore, as stated in an official announcement.
IMFA's stock witnessed a decline of more than four percent in today's trading, although it had shown growth of over nine percent in the past month. Concurrently, the company's revenues also dropped from Rs 743.42 crore in the year-ago quarter to Rs 701.73 crore in the current quarter.
Subhrakant Panda, the Managing Director of Indian Metals & Ferro Alloys, provided insights into the decline in revenue during an interview with CNBC-TV18. He explained that the decrease was primarily driven by a drop in average prices, falling from Rs 131,000 per tonne in the first quarter of FY23 to Rs 115,000 or Rs 116,000 per tonne in the first quarter of FY24.
Despite the challenges in revenue, Panda highlighted that the company had achieved significant improvements in profitability compared to the last quarter of FY23, even with similar prices.
Regarding margins, Panda said that margins in Q1 were approximately 25 percent. The company's guidance for the next quarter is around 20 percent or slightly higher. There is optimism for a possible improvement afterward, with the expectation of coke prices increasing significantly.
On another note, Panda informed that the company is on track to receive Rs 350 crore following the Utkal verdict. He expressed confidence that the payment process would progress smoothly, considering the nominated authority's actions leading to the actual payout of the money.
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The expansion project in Kalinganagar, Odisha, is on track with the public hearing being conducted successfully recently. IMFA is also in active discussions to tie up for hybrid renewable energy to meet its requirement for the project and comply with enhanced renewable power obligations (RPO), he added.
Odisha-based Indian Metals & Ferro Alloys Ltd (IMFA) produces 2.84 lakh tonnes of value-added ferrochrome per annum from its manufacturing complexes in Therubali and Choudwar.
-With inputs from agency
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