Indian Metals & Ferro Alloy Ltd (IMFA), an integrated ferrochrome producer in the state since 1961, has posted 24 per cent drop in net profit in the first quarter of the current fiscal due to financial burden occurred in the capitalisation of its power plant and mark-to-market (MTM) losses incurred in hedging.

 

“Rise in financial charges on account of capitalisation of 30 Mw dual fuel power plant and MTM on outstanding hedging impacted the bottom line, which declined by 24 per cent to Rs 28.45 crore.” the company said in a statement.

 

However, during the same period, its sales, operating profit and EBITDA margins grew on account of better realization from exports, it added.

 

The company posted an increase of 10.5 per cent in top line during the period to Rs 287.88 crore as compared to Rs 260.41 crore achieved a year ago. Operating profit rose to Rs 90.69 crore from Rs 71.55 crore in the corresponding period in 2011-12, a growth of 26.8 per cent. This is mainly attributed to better prices and currency devaluation.

 

The company also announced the commissioning of its other projects.

 

The 2 x 60 Mw captive power plant is expected to go on stream during second quarter of 2012-13 following which, its total power generation capacity will stand at 258 MW. Utkal Coal Ltd, a coal mining subsidiary in which IMFA has 74 per cent stake, is expected to be operational before the end of calendar year and will provide a significant boost to performance, the company release said.

 

During the first quarter, ferrochrome exports accounted 84 per cent of the company's net sales, it added.