Bhubaneswar: Indian Metals & Ferro Alloys Ltd (IMFA), India’s leading fully integrated producer of ferro chrome has reported 25% drop in net profit to 186.93 Crore for the 2017-18 financial year. During the 4th quarter the Net profit witness a deep slump to only Rs.4.90 Crores from Rs.74.74 Crores from the corresponding quarter last fiscal. Revenue during the FY18 has increased to Rs.1769.26 Crore from Rs.1697.04 Crore in FY17. Q4 revenue however, dropped to Rs. 443.27 Crore from Rs. 483.65 Crore.
The fall in net profit despite higher revenue is being attributed to the lower benchmark prices.
“The ferro chrome market has been extremely volatile and Q4 results are a direct reflection of lower prices despite higher production and sales. In this context, the ongoing Q1 FY19 quarter numbers will reflect the positive impact of higher benchmark price finalisation coupled with INR depreciation and a stable Rand. Looking ahead, price realisation during FY19 on average is expected to yield good margins though quarter on quarter volatility may persist” said Subhrakant Panda, Managing Director & CEO of IMFA.