Indian Metals and Ferro Alloys Ltd
NSE:IMFA
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Indian Metals and Ferro Alloys Ltd
Indian Metals & Ferro Alloys Ltd. engages in the production of Ferro alloys. The company is headquartered in Bhubaneshwar, Orissa and currently employs 2,092 full-time employees. The company went IPO on 2010-07-22. The firm is a producer of ferrochrome. The company operates through three segments: Ferro Alloys, Power and Mining. The company has over two captive mines in Sukinda and Mahargiri with a capacity of approximately six lakh tons per annum (TPA). The firm has a captive power generation capacity of over 204.55 megawatts (MW) and solar power capacity of approximately four MW. The Company’s ferrochrome output is primarily exported to Korea, China, Japan and Taiwan. The firm operates two manufacturing units at Therubali and Choudwar in Odisha with a total production capacity of approximately 284,000 tons per annum (TPA) and a smelting capacity of over 190 megavolt-amperes (MVA). Its plants are located at Therubali and Choudwar in Odisha. The Company’s mines are located at Sukinda and Mahagiri in Odisha. Its subsidiaries include Indmet Mining Pte. Ltd., Utkal Coal Ltd. and IMFA Alloys Finlease Ltd.
Indian Metals & Ferro Alloys Ltd. engages in the production of Ferro alloys. The company is headquartered in Bhubaneshwar, Orissa and currently employs 2,092 full-time employees. The company went IPO on 2010-07-22. The firm is a producer of ferrochrome. The company operates through three segments: Ferro Alloys, Power and Mining. The company has over two captive mines in Sukinda and Mahargiri with a capacity of approximately six lakh tons per annum (TPA). The firm has a captive power generation capacity of over 204.55 megawatts (MW) and solar power capacity of approximately four MW. The Company’s ferrochrome output is primarily exported to Korea, China, Japan and Taiwan. The firm operates two manufacturing units at Therubali and Choudwar in Odisha with a total production capacity of approximately 284,000 tons per annum (TPA) and a smelting capacity of over 190 megavolt-amperes (MVA). Its plants are located at Therubali and Choudwar in Odisha. The Company’s mines are located at Sukinda and Mahagiri in Odisha. Its subsidiaries include Indmet Mining Pte. Ltd., Utkal Coal Ltd. and IMFA Alloys Finlease Ltd.
Strategic Acquisition: IMFA announced the acquisition of Tata Steel's Kalinganagar ferrochrome plant for INR 610 crores, significantly boosting its capacity and positioning it as India's largest and the world's sixth-largest ferrochrome producer.
Profitability Trend: Quarterly profit after tax (PAT) and EBITDA margins have shown steady improvement over the last three quarters, with Q2 PAT up to INR 98.77 crores and EBITDA margin at 19.3%.
Rising Realizations: Average realization prices rose to INR 101,000 per tonne in Q2, with management expecting further improvements in Q3 and Q4 due to higher benchmark and spot prices.
Integration & Self-Sufficiency: The company remains fully integrated, meeting all chrome ore requirements from captive mines, with plans to raise ore extraction to cover expanded capacity.
One-Time Costs: Q2 EBITDA was impacted by a one-time INR 14 crore charge for renewable power obligations and INR 14 crore notional forex loss, both of which will not recur at the same scale in coming quarters.
Optimistic Outlook: Management is confident about continued improved performance in Q3 and Q4, citing strong domestic demand, stable input costs, and upcoming operational synergies from the acquisition.
