IMFA reports Rs. 33 Crore loss in Q1 on weak demand, depressed prices

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Bhubaneswar:  Leading Ferro Alloys producer IMFA has reported Rs.33 Crore loss in the July-September quarter mainly due to weak demand and challenging market conditions.

IMFA has reported a profit of Rs.10.66 Crore in the previous quarter (Q1) and a profit of Rs.21.49 Crore in the corresponding quarter in the last financial year. Revenue during the quarter also dropped to Rs.389 Crore against Rs.446 Crore in the previous quarter and Rs.394 Crore in the corresponding quarter last fiscal. The company’s export has also dropped to Rs.Rs.352 Crore from Rs.401 Crore in Q1.

In the first 6 months of FY20, IMFA has reported a loss of Rs. 22.41 Crore against a profit of 50 Crore in the 1st half of FY19.

 “Market conditions are extremely challenging at the moment with prices being at unviable levels. While there have been significant production cutbacks all over the world, our fully integrated business model, low gearing and long term marketing arrangements with leading customers has helped us sustain. As such, especially given the reported finalisation of a ‘mini deal’ between the US & China, we expect market conditions to start improving with pick up in prices to follow” Subhrakant Panda, Managing Director said

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