Bhubaneswar: The mood in the India Metals & Ferro Alloys Ltd.(IMFA) corporate head office in the city is quite buoyant as the ferro crome prices are going northward. The country’s leading fully integrated producer of commodity, which has notched a higher net profit in third quarter of 2016-17 is expecting end the fiscal with a higher bottomline in the fourth qurter.
The spurt in ferro chrome prices in the global market has pushed the topline and bottomline of the country’s leading fully integrated producer of the commodity, Indian Metals & Ferro Alloys Ltd (IMFA) in the third quarter ending December 31, 2016.
“The ongoing Q4 numbers will be exceptional”, said the IMFA managing director & CEO, Subhrakanta Panda. “As the increase in spot prices came after long term pricing for Q3 had been finalised and is only partly reflected in the quarterly results, IMFA says that with the benchmark price for the ongoing fourth quarter went up by 55 cents (50%) to 165 cents will add substantially to the topline and bottomline”, he explained.
“We are ideally positioned to reap the benefit of the turnaround and intend to use the gains to make our balance sheet even stronger,” asserted Subhrakanta.
The company earned a revenue of Rs462 crore in Q3 of 2016-17, up from Rs 335.35 crore during the corresponding period of the previous year. Similarly, the company posted a net profit of Rs 63.87 crore against a meager Rs 2.75 crore during the Q3 of 2015-16.
In the nine months ending on December 31, 2016, IMFA posted a net profit of Rs 75.83 crore from a gross revenue of Rs 1102.87 crore. The company’s profit earning was 7.44 crore from a revenue Rs1019.02 crore during the same period the previous year.
Output during the quarter Oct-Dec 2016 was at an all time high as all 6 furnaces were in operation, reported IMFA. The ferro crhome production was 64,641 tonnes, up 24% from 52,217 tonnes in Q3 of the previous year. Similarly, the sale was 64,034 tonnes, an increase of 19% from 53,764 tonnes.