Odisha: Record Year for IMFA in FY17; Highest ever power generation, ore output & ferro chrome

Bhubaneswar: A sharp increase in ferro chrome prices has significantly boosted the company’s performance for the fourth quarter with profit after tax growing manifold. Coming after the year started on a poor note with ferro chrome prices fall to a low of 55 cents, rapid rebalancing of supply resulted in prices moving up sharply by the end of the year.

Highlights of Q4 FY17 vs Q4 FY16
• Revenue of Rs 594.17 crores vs Rs 207.51 crores
• Exports of Rs 524.33 crores vs Rs 173.86 crores
• Net Profit of Rs 174.00 crores vs Rs (37.29) crores

Highlights of FY17 vs FY16
• Revenue of Rs 1697.04 crores vs Rs 1226.53 crores
• Exports of Rs 1447.37 crores vs Rs 1057.15 crores
• Net Profit of Rs 249.83 crores vs Rs (44.73) crores

Operational Highlights of Q4FY17 vs Q4 FY16
• Ferro Chrome production of 59,391 tonnes, up 92% from 30,904 tonnes
• Sales of 56,578 tonnes, increase of 48% from 38,101 tonnes
• Power Generation of 261 MU vs 142 MU

Operational Highlights of FY17 vs FY16
• Ferro Chrome production of 235,460 tonnes, up 25% from 188,849 tonnes
• Sales of 233,698 tonnes, increases of 21% from 193,302 tonnes
• Power Generation of 1037 MU vs 858 MU

Financial Highlights (as on March 31, 2017)
• Long Term Debt of Rs 775 crores
• Debt : Equity Ratio of 0.74
• Final dividend of Rs 10/- per share (Total dividend of Rs 20/- (ie. 200%) for FY17 including interim dividend declared earlier
• Record foreign exchange earnings of Rs 1447 crores

Recent developments
• Mining operations at Sukinda and Mahagiri have been stopped consequent to withdrawal of CTO

Management Comments

Commenting on the developments Mr Subhrakant Panda, Managing Director & CEO said: “The fourth quarter has indeed been exceptional due to the sharp increase in prices. However, this should not detract from the significant improvement in operational performance which has enabled us to reap the benefit of higher prices. We have registered a new high on every single front – ore raising, power generation, ferro chrome production & exports – which is indeed commendable.

Ore prices have fallen sharply internationally due to higher output and this has also translated into lower ferro chrome prices; we expect the next 1-2 quarters to be somewhat challenging but overall the outlook continues to be good on the basis on strong demand for stainless steel.

We are also faced with some uncertainty on account of mining operations having stopped for a month. We have addressed the issues raised in the showcause notice and expect to be able to restart mining operations soon. We have also sought the intervention of the Hon’ble High Court in order to resolve the matter expeditiously.”

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