KOLKATA: Indian Metals & Ferro Alloys Ltd (IMFA), a leading domestic producer of ferro chrome saw a drop in net profit to Rs 28.74 crore in Q1FY19 against a net of Rs 99.92 crore in same period. The slide in profits was led by an unplanned shutdown at one of its units and mark to market provision on foreign currency borrowings which affected the bottom line.
IMFAs revenues touched Rs 412.53 crore in Q1FY19 compared to Rs 426.31 crore in Q1FY18. The companys exports went up marginally during the quarter to Rs 377.97 crore against Rs 376.84 crore in the previous corresponding quarter.
Commenting on the developments, Subhrakant Panda, IMFAs CEO said: “The current quarter numbers reflect improved market sentiments along expected lines. However, an unplanned shutdown at our Therubali unit and mark to market provision on foreign currency borrowings affected the bottom line.”
Long term price finalisation for the ongoing quarter reflects the positive trend in the ferro chrome industry and, although quarter on quarter volatility may persist, we expect to post a good performance overall, he added.
Jayant Misra, COO, IMFA said: “We have brought down our output guidance for the year on account of production disruption at our Therubali unit followed by a furnace shell puncture due to the unplanned shutdown. However, all efforts are being made to get back to full normalcy at the earliest.”