IMFA

Indian Metals & Ferro Alloys Ltd (IMFA) is a fully integrated producer of value added ferro chrome with capacity of 275,000 tonnes per annum. The Company has manufacturing complexes in Therubali and Choudwar backed up by captive power generation of 261 MW (including 3 MW solar) and captive chrome ore mines in Sukinda, Mahagiri and Nuasahi.

The company did well for itself in Q1FY18. Its revenue rose 68% to Rs.426 crore and exports comprised 88% of its topline – it was up 74% at Rs.377 crore and it ended the quarter with a net profit at Rs.100 crore v/s loss of Rs. 30 crore.  What helped was the 3% drop in total expenses, helped mainly by 14% fall in interest outgo.

Its ferro Chrome production was up 2% at 51,798 tonnes, up 2% while sale was down 6% at 48,500 tonnes. Its power generation was at 230 MU vs 220 MU. The closure of mining operations in Q1 did have an impact though Q2 could be better as mining operations at Sukinda & Mahagiri resumed from June 23rd, 2017 after ‘Consent to Operate’ (CTO) was reinstated; CTO is valid as before until March 2021. Plus spot prices of ferro chrome have risen over past few days and this too will get reflected in second quarter.

Equity is at Rs.26.98 crore and EPS for the quarter was pretty good at Rs.37.04 (FV of Rs.10).