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IMFA Gets Boost From Turnaround In Commodities

It posted revenue of Rs 462 crores in the third quarter of financial year 2017 compared with Rs 335.35 crores in the same quarter of financial year 2016

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Indian Metals & Ferro Alloys Ltd, the country’s leading fully integrated producer of ferrochrome, announced Q3 & 9M FY17 results for the period ended December 31, 2016.

Output during the quarter was at an all time high as all 6 furnaces were in operation and, aided by a spurt in ferro chrome prices, boosted the company’s performance for the third quarter of FY17. There has been a broad rally in commodity prices and the benchmark price of ferrochrome too has moved up sharply.

However, the increase in spot prices came after long term pricing for Q3 had been finalised and is only partly reflected in the quarterly results. Subsequently, the benchmark price for the ongoing fourth quarter went up by 55 cents (50%) to 165 cents which will add substantially to the topline & bottomline.

It posted revenue of Rs 462 crores in the third quarter of financial year 2017 compared with Rs 335.35 crores in the same quarter of financial year 2016.

Exports were Rs 381.93 crores in Q3 of FY 17 versus Rs 266.48 crores in the Q3 of FY 16.

Net profit for Q3 in FY17 was Rs 63.87 crores versus Rs 2.75 crores in the same quarter of FY 16.

Revenue for Q3 of FY 17 was Rs 1102.87 crores versus Rs 1019.02 crores in Q3 of FY16.

"After a long period of tepid demand and declining prices there has been a noticeable turnaround in the ferrochrome industry brought about by improved business sentiment in China, unviable ferrochrome capacity being shut down and significantly higher chrome ore prices," said Subhrakant Panda, Managing Director & CEO.

"The spurt in finished product pricing is only partly captured in the Q3 results as it came after long term pricing for the quarter had been finalised; however, the ongoing fourth quarter numbers will be exceptional. Though there is some cooling off happening, we believe prices are now moving into sustainable territory with healthy margins visible over the medium term," Panda said.