Indian Metals and Ferro Alloys (IMFA) Ltd shares gained over 3% on Tuesday after the company’s subsidiary received compensation worth ₹132 crore from the Coal Ministry.
In a filing to the stock exchanges, the ferrochrome producer said that its subsidiary company M/s Utkal Coal Limited received compensation worth ₹131,52,57,422 from the Nominated Authority, Ministry of Coal.
This sum is part of compensation towards the land for Utkal 'C' Coal Block, consequent upon the issuance of the final compensation order on December 5, 2023.
Indian Metals and Ferro Alloys is confident of maintaining its earnings before interest, tax, depreciation and amortisation (EBITDA) margin over 20%.
In an interview with CNBC-TV18 on January 31, the company’s Managing Director Subhrakant Panda said that while the prices of ferrochrome softened in the fourth quarter of the current fiscal year (FY24), there appears to be no room for any further softening. "If anything, there is a chance for upside," he said.
On the expansion plans, Panda said that there was a potential delay due to administrative issues in acquiring land. However, despite the said setback, the company's ore output is set to increase from 6.7 lakh tonnes in FY24 to approximately 7.3 lakh tonnes in the upcoming financial year, the MD noted.
IMFA is the largest producer of Ferro Alloys in India. The company produces ferro chrome, ferro silicon, high purity ferro silicon, and ferro silicon magnesium. It’s a major exporter of Ferro Alloys.
Shares of Indian Metals and Ferro Alloys Ltd were trading 1.33% lower at ₹559.6 apiece on BSE at 2:28 pm.
(Edited by : Ajay Vaishnav)
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