By Bizodisha Bureau, Bhubaneswar, October 24, 2017: Indian Metals and Ferro Alloys (IMFA) Ltd on Tuesday said its profit after tax (PAT) dived 82 per cent to Rs 7.37 crore in the second quarter ended September.

The company had clocked Rs 42.31 crore PAT in the year- ago quarter, it said in a press statement.

During the July-September period, the revenue earning touched Rs 416.03 crores versus Rs 387.58 crore in the year-ago quarter. Similarly, the exports volume was recorded at Rs 344.94 crores versus Rs 323.70 crore in the corresponding period in the previous fiscal.

IMFA mostly exports ferrochrome to the Far-East — China, Japan and Taiwan. In India, the company supplies the alloy to Jindal Stainless, Shah Alloys and other producers.

Ferrochrome is an alloy comprised of iron and chromium used primarily in the manufacturing of stainless steel. The average chrome content in stainless steel is approximately 18 per cent.

Commenting on the developments Mr Subhrakant Panda, Managing Director & CEO said. “Ferro Chrome has been quite volatile and the Q2 FY18 benchmark price was negotiated at a time when sentiments were poor on account of a temporary slowdown in offtake from China. While spot prices bounced back subsequently, we were unable to benefit having already finalised the quarterly contracts. Riding on positive sentiments, the pricing of long term contracts in the ongoing quarter is substantially higher and will yield healthy margins. Furthermore, going ahead we expect prices to move within a relatively narrow band.”

During the July-September period, total expenses of the company grew to Rs 415.73 crore from Rs 335.80 crore in the corresponding period of 2016-17 fiscal.

However, total income of the company rose 5.60 per cent to Rs 422.18 crore as against Rs 399.76 in similar period of the preceding financial year.