IFGL

The company is engaged in the manufacture of refractories for the iron and steel industry through its facilities in India, UK, Germany, US and China. Its performance for Q3FY15 was muted with consolidated net sales falling 1% (YoY) at Rs.193 crore with net profit falling 14% at Rs.12 crore. NPM fell from 7.3% to 6.4%. EBITDA margin too showed pressure – down 12.3% from 14.3%. In terms of its overseas subsidiaries, USA and UK did well but Germany showed a 3.1% drop in EBIT. Its Indian subsidiary -IFGL Exports  where IFGL Refractories Ltd owns 51% showed a 11% growth in revenue but PAT growth was flat.

The company has blamed the poor performance on currency volatility and German subsidiary’s poor show because October to December quarter is generally a low sales quarter thus volumes were impacted and loss reported. The company expects things to improve in months to come. It is in the process of expanding its capacity which is expected to go on stream by March 2015. We could see benefits accruing from FY16. Largely debt free, it is funding the expansion entirely through internal accruals.