IMFA Stays Strong Amid Market Volatility, Eyes Sustainable Future

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21, May 2025
IMFA Stays Strong Amid Market Volatility, Eyes Sustainable Future

Bhubaneswar, May 21, 2025: Indian Metals & Ferro Alloys Ltd (IMFA; estd 1961), the country’s leading fully integrated producer of ferro alloys, has announced results for Q4 and full year ended March 31st, 2025.

Business Highlights

  • Chrome Ore raising crossed 700,000 lakh tonnes mark for the first time
  • Work has started on the 100,000 tpa ferro chrome expansion at Kalinganagar
  • Agreementsigned with leading RE companies for 110 MW hybrid renewable energy on RTC basis
  • Ethanol Project on track to be commissioned in Q4 FY26

Financial Performance

Standalone for Q4 FY25

Q4 FY25 Revenue EBITDA EBITDA Margin PAT PAT Margin EPS (not annualized) Exports
  ₹ 567.15 cr ₹ 70.52 cr 12.43% ₹ 47.07cr 8.30 % ₹ 8.72 ₹ 473.86 cr

Financial Highlights                                                                                                                             (in cr)

Performance indicators Q4 FY25 Q4 FY24 Q3 FY25 Q2 FY25 Q1 FY25 FY25 FY24
Revenue 567.15 700.56 643.22 691.92 662.28 2564.57 2780.17
EBITDA 70.52 125.38 128.15 175.62 156.22 530.51 607.50
PAT 47.07 55.91 93.14 130.83 107.05 378.09 363.69
Exports 473.86 630.77 568.52 652.97 626.94 2322.29 2597.12

Operational Highlights

Performance indicators Q4 FY25 Q4 FY24 Q3 FY25 Q2 FY25 Q1 FY25 FY25 FY24
Ferro Chrome production (Tonnes) 65,101 65,140 65,865 68,248 60,976 260,190 264,119
Ferro Chrome sales (Tonnes) 64,391 67,981 65,490 66,951 63,035 259,867 265,800
Power generation (Million Units) 285 286 254 277 277 1092 1171
Chrome Ore raising (Tonnes) 220,248 117,874 174,515 104,327 202,772 701,863 669,580

Management Comment

Commenting on the results, Mr Subhrakant Panda, Managing Director said: “Despite a challenging macroeconomic environment and depressed commodity prices during Q4, IMFA demonstrated resilience by leveraging its fully integrated business model and long term debt free Balance Sheet along with a sharp focus on operational efficiency. With ferro chrome prices recovering from its recent lows, we are seeing improved margins in the ongoing quarter which will translate into better financial performance going ahead.”

Mr Panda added: “The Kalinganagar Project, which will increase production capacity by 40%, is on track and we expect to start operations in Q2 FY27. We have tied up with leading RE companies for hybrid renewable energy timed with our expansion plans, and this will substantially reduce our carbon footprint. Similarly, the diversification into ethanol looks to effectively utilise available infrastructure and will be value accretive.”

Market Commentary – Q4 FY26 and Outlook

Commodity markets in general were affected by geopolitical disputes and uncertainty brought about by trade policy related developments. As a result, ferro chrome prices in particular corrected sharply making it unviable for most producers, especially as chrome ore prices remained elevated due to supply constraints. South Africa continued to experience high logistics and electricity costs, and Glencore announced that it would curtail ferro chrome production until market conditions were more conducive.

There has been a noticeable turnaround in ferro chrome prices, supported by measures taken by China to support domestic consumption. Moreover, the announcement of a preliminary deal to walk back reciprocal tariffs by the US and China is also a positive development. As such, a positive bias for ferro chrome prices is expected in the first half of FY26 especially given higher input costs.

 

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