Indian Metals & Ferro Alloys Ltd Management Discussions

<dhhead>Management Discussion & Analysis</dhhead>

Global Economic Review¹

The global economy grew by 3.3% in CY 2024 amidst several challenges such as imposition of tariffs and geopolitical conflicts which heightened uncertainty. Emerging and developing economies provided strong support in this regard by registering growth of 4.3% while advanced economies experienced noticeably muted growth of 1.8% even as inflation eased.

Global headline inflation dropped from 6.7% in CY 2023 to 5.8% in CY 2024, with falling energy costs being the primary factor. Some developing countries, however, faced sticky inflation on account of currency depreciation and supply chain disruptions. With advanced economies moving closer to target inflation rates, many Central Banks started gradually reducing interest rates in order to support growth.

With the manufacturing sector in general holding up, the metals and mining sector played a crucial role in the global economic landscape. Stainless Steel demand remained positive, especially in emerging economies, driven by urbanisation and infrastructure development.

Regional Overview & Outlook

Asia and Pacific

The Asia-Pacific Region continued to play a central role in the global economy contributing approximately 60% of global growth in CY 2024. The region recorded a GDP growth of 5%, outpacing many other parts of the world, due to strong export activity and steady recovery across several economies. Countries in East Asia – including China, Japan, South Korea and Taiwan – saw stronger trade activity driven by investments in semiconductors and green manufacturing along with a 70 bps reduction in inflation to 2.6% in CY 2024.

Indian Economic Review

India remained one of the strongest performing major economies in FY 2024-25 with an estimated GDP growth of 6.5%. The country’s economic expansion was driven by robust growth in private consumption and strong export performance. Higher rural consumption, resulting from improved agriculture output, pushed private consumption growth to 7.6% and contributed 4.3%² to overall GDP growth.

The governments continued investment in infrastructure, logistics, and digital access has played a key role in supporting economic stability. For FY 2024-25, the government allocated H 11.11 Lakh Crore towards capital expenditure, accounting for around 3.4% of the country’s GDP.³

Retail headline inflation eased to 4.6% in FY 2024-25, down from 5.4% in FY 2023-24, and aided rebound in consumption.⁴ However, the recent tariffs imposed by the United States are likely to push global inflation higher due to supply chain disruptions. In response, India is carefully monitoring global trade developments and planning a measured response.

Inflation over the years

FY 2022-23	6.7
FY 2023-24	5.4
FY 2024-25	4.6

Source: PIB press release

Looking ahead, India’s GDP is expected to grow by 6.5% in FY 2025-26 and FY 2026-27, supported by conducive monetary and fiscal policy, rising rural incomes, and moderating inflation. Moreover, strong growth in GST collections points to the strength and resilience of the Indian economy, which will further get a boost as global uncertainties ease.

Industry Overview

Global Chrome Ore Industry⁵

In CY 2024, global chrome ore output reached 39.20 million tonnes registering a 9% growth over the previous year. South Africa remained the leading producer accounting for over 60% of the total output, while India maintained its position as the third-largest contributor producing 3.41 million tonnes.; additionally, the CIS and Middle East together produced 5.19 million tonnes. Occurrence of chrome ore reserves is heavily concentrated with >95% found in South Africa and Kazakhstan, and distortion in trade flows due to local conditions and policy action can have unpredictable consequences.

Global chrome ore production in CY 2024

Source: United States Geological Survey

Global Ferro Chrome Industry

Ferro Chrome is an essential input in the production of stainless steel as it imparts the non-corrosive property; thus, stainless steel accounts for over 80% of global ferro chrome consumption. It is primarily produced in submerged electric arc furnaces with chrome content ranging from 50-70% depending upon the grade of chrome ore used.

In CY 2024, global high carbon ferro chrome production was 17.58 million tonnes with China retaining pole position with an output of 8.87 million tonnes while India produced 1.32 million tonnes. The global ferro chrome market was valued at US$ 20.05 billion in CY 2024 and is expected to register a CAGR of 5.6% through CY 2037.

17.58 million tons

Global High-Carbon Ferro chrome production in CY 2024

Source: ICDA

Regional Insights⁶

Asia Pacific

In CY 2024, the Asia Pacific region commanded the largest share of the ferro chrome market, with demand being propelled by stainless steel manufacturers in China and India on account of urbanisation and infrastructure development.

North America

The US is a significantly larger market for stainless steel as compared to Canada. Moreover, local production is expected to increase consequent to declining imports on account of higher tariffs.

Europe

Production of stainless steel is expected to grow as the region looks to revitalise its automotive sector and also through higher allocation for R&D.

Latin America, the Middle East and Africa

Even as production of speciality steel is expected to increase, overall growth of stainless steel is likely to be moderate.

Growth Drivers

Growing Automotive Industry

Stainless Steel is used by the automotive sector, and the latter’s expected growth by 1.7% to 89.6 million units in CY 2025, will lead to higher demand for ferro chrome.

Growth of Construction Industry

The construction sector has witnessed considerable growth in recent years, and this has led to higher demand for stainless steel which is used in the residential and commercial segments as well as industrial infrastructure. With the sector projected to reach nearly US$ 15 trillion by 2030, there is significant potential for additional demand for ferro chrome.

Rising Investment in Manufacturing

The manufacturing sector is vital to most economies worldwide and has been seeing a surge in investments, especially in sectors like heavy equipment, consumer goods, and electronics. This will drive stainless steel consumption and, in turn, bolster demand for ferro chrome.

6 https://www.fortunebusinessinsights.com/ferrochrome-market-107373

Strengths

• Ferro chrome is an essential component of stainless steel production, with over 80% of world’s ferrochrome utilised by the industry, supporting its steady demand.

• The decline in global input prices in 2024 reduced the operational cost of the energy-intensive industry, supporting margins.

• Long-term contracts enable ferro chrome companies to circumvent price volatilities, safeguarding their margins.

Challenges

• Rising power costs influence the cost of ferrochrome production, thereby impacting margins.

• Shortage of high-quality coke and tariffs on key imports put pressure on producers’ margins, impacting profitability.

Opportunities

• Global stainless steel production is projected to remain robust, driven by Chinese and other Asian countries’ demand, supporting ferrochrome demand.

• Global shift towards sustainable operations allows the industry to adopt low-cost renewables and hybrid renewable options to gain long-term economic benefits.

• The industry can adopt a more data-driven and market-oriented approach to pricing, allowing for transparent and flexible price mechanisms.

Threats

• Ferro chrome prices are expected to remain elevated in the medium to long-term owing to heightened chrome ore prices. The concentration of chrome ore in a few countries threatens supply volatility which can impact ferro chrome production.

• The implementation of the EU Carbon Border Adjustment Mechanism (CABM) is expected to affect steel exports to Europe for producers who fail to meet the EU’s emission standards.

• Macroeconomic upheavals driven by tariff-related uncertainties threatens to impact global trade, thereby affecting demand. Chinese overcapacity issues and global conflicts have also contributed to sluggish demand patterns that pressure ferro chrome prices and utilisation rate.

Global Stainless Steel Industry

Stainless Steel production increased by 7% in CY 2024 over the previous year, reaching a total of 62.6 million metric tonnes.⁷

Region-wise Stainless Steel Production

(in million tonnes)

Region	2024	2023	% Change
Europe	6.08	5.9	1.5
USA	1.95	1.8	6.9
China	39.44	36.67	7.5
Asia (excluding China and	7.32	6.88	6.4
South Korea)
Others	7.82	7.16	9.2
Total	62.62	58.44	7.0

Source: World Stainless Steel

The global stainless steel market was valued at $120.2 billion in CY 2024 and is projected to reach $157.4 billion by CY 2030, growing at a CAGR of 4.6% during CY 2025-2030.⁸ Demand is rising due to increasing usage across the construction, automotive and healthcare sectors, its durability and corrosion resistance making it a preferred choice for a variety of applications ranging from buildings to medical equipment. Additionally, growing investments in construction, auto manufacturing, and healthcare are encouraging more businesses to choose stainless steel for both industrial and everyday use.

Indian Chrome Ore Industry

The estimated value of chrome ore raising in FY 2024-25 was around H 4759 Crore, accounting for 3.7% of India’s total metallic mineral output. The production of chrome ore for FY 2024-25 reached 3.04 million tonnes, with Odisha contributing 100% of the national output. Increasing demand for stainless steel on account of infrastructure development, construction activities, and urbanisation is leading to more demand for ferro chrome and, consequently, chrome ore.

Indian Ferro Chrome Industry

India’s ferro chrome production in CY 2024 stood at 1.42 million tonnes, 6% lower than the previous year on account of raw material constraints and sluggish demand. The stainless steel market experienced noticeable weakness towards the end of the year on account of macroeconomic factors, resulting in downward pressure on ferro chrome prices. Moreover, chrome ore availability was limited which led to production cutbacks – primarily by those ferro chrome producers reliant on bought out ore or conversion contracts. Ferro Chrome prices were at their lowest in recent times during the first quarter of CY 2025 and have gradually recovered since bolstered by high chrome ore prices and revival in demand.

Rising stainless steel production given the low per capita consumption, urbanisation, and government initiatives to boost the manufacturing sector along with a large outlay on infrastructure are some of the factors propelling the demand for ferro chrome in India.

SCOT Analysis

Strengths

Strengths

• India ranked fourth globally in ferro chrome production owing to a healthy endowment of chrome ore in the state of Odisha.

• The proximity of raw material sources to processing facilities creates cost efficiencies and supply chain reliability that many international competitors lack.

• The Odisha cluster benefits further from lower industrial power tariffs, which creates localised cost efficiencies.

• The proximity of the ports in the eastern belt of India with China, South Korea and other countries in East Asia reduces the logistics cost of exports compared to other global Ferro Chrome suppliers.

Challenges

• The Indian ferro chrome industry faces significant challenges from deteriorating chrome ore quality, which directly impacts production costs and output quality.

• Indian ferro chrome producers maintain significant export orientation, creating vulnerability to global demand fluctuations, exchange rate variations and international competitive pressures on the grade quality of Ferro Chrome.

• High energy costs in many states of India represent a substantial operational burden, limiting competitiveness against international producers with access to lower-cost energy sources.

Opportunities

• India’s stainless steel demand growth continues to outpace global demand growth, with 8-9% growth projected in CY2025. Growth in domestic demand can insulate the nation’s ferro chrome producers against external demand fluctuations.

• The Indian government’s policy framework increasingly emphasises domestic value addition over raw material exports through adding export duties on chrome ore exports, thus nurturing favourable conditions for ferro chrome industry development.

• The government’s focus on infrastructure development and construction sector growth also creates indirect support for ferrochromedemandthroughenhancedstainlesssteelconsumptioninbuilding,architectureandconstructionapplications.

Threats

• The Indian ferro chrome industry faces significant competitive pressures from established producers, particularly China, which dominates global production.

• While India currently maintains adequate domestic reserves, the finite nature of these resources and potential for quality degradation pose strategic challenges for industry sustainability.

• Global macroeconomic conditions also present ongoing challenges for Indian ferro chrome demand due to headwinds affecting stainless steel consumption in key markets.

Indian Stainless Steel Industry

The stainless steel consumption in India increased by 11% from 4.02 million tonnes in FY 2023-24 to 4.46 million tonnes in FY 2024-25, and is further expected to grow at a CAGR of 6.2% to reach US$ 31.90 billion by FY 2033-34. India’s stainless steel industry has grown significantly, thanks to rapid urban development, expanding infrastructure, and a strong manufacturing sector. Initiatives like ‘Make in India’ have further boosted demand across various industries.

Growth Drivers

Growing demand from stainless steel industry due to rapid urbanisation

The construction industry has sustained its position as a major consumer of stainless Steel. Ferro Chrome are essential additives in the production of Stainless Steel, providing corrosion resistance, strength and other desirable properties. Government-led infrastructure initiatives are playing a key role in driving this growth of Stainless Steel demand which also bolsters Ferro Chrome demand. In the Union Budget 2025-26, the government announced an Urban Challenge Fund of H 1 Lakh Crore aimed at bolstering infrastructure projects like ‘Cities as Growth Hubs’ and ‘Creative Redevelopment of Cities’.⁹

Increase in Mega Projects in Railways

Increased automotive production of Rail equipment including mega projects of Metro Rails in India is pushing up the demand for the superior Stainless steel grades which has positive impact in Ferro Chrome demand.

Global Ethanol Industry

The global ethanol industry was valued at $98.94 billion in CY 2024, growing from $93.62 billion in CY 2023, and is expected to grow at a CAGR of 6.7% to touch US$ 165.62 billion by CY 2032. This growth is driven by rising demand for biofuels, owing to the global shift toward renewable and cleaner energy sources. Advances in distillation and fermentation technologies are making production more efficient. Furthermore, the usage of plant waste instead of food crops to produce ethanol is opening up new, more sustainable ways to make ethyl alcohol.

India has demonstrated substantial growth in ethanol production, aligning with the government’s Ethanol Blended Petrol (EBP) programme and broader decarbonisation efforts. The country’s production has witnessed a threefold rise in the past five years, reaching 1,630 million gallons in 2024.¹⁰

Annual World Fuel Ethanol Production

(in million gallon)

Region	2020	2021	2022	2023	2024	% of World Production
United States	13,941	15,016	15,361	15,580	16,219	52%
Brazil	8,100	7,320	7,400	8,470	8.780	28%
India	530	950	1,220	1,510	1,630	5%
European Union	1,310	1,380	1,420	1,390	1,440	5%
China	940	900	960	1,070	1,200	4%
Canada	429	434	447	454	464	1%
Thailand	390	350	380	340	360	1%
Argentina	210	270	310	310	310	1%
Rest of World	630	690	722	806	807	3%

Source: RFA (Renewable Fuels Association)

Indian Ethanol Industry

India is the world’s third largest producer and consumer of Ethanol.¹¹ The Indian ethanol market is estimated to be valued at $3.28 billion in FY 2024-25 and is expected to grow at a CAGR of 16.1%¹² to $9.31 billion by FY 2031- 32. Ethanol can be produced from sugarcane, maize, wheat etc. In India, it is mainly produced from sugarcane molasses through fermentation. Ethanol is gaining increasing popularity in India because it is used as a petrol blend to reduce air pollution from vehicles and cut down on crude oil imports. The market is also growing due to supportive government policies. According to the National Biofuel Policy 2018, the Indian government is running the Ethanol Blended Petrol (EBP) Programme across the country, encouraging Oil Marketing Companies to sell petrol mixed with ethanol.

The target for 20% ethanol blending in petrol has been advanced from 2030 to ESY 2025-26 (ESY: Ethanol Supply Year spanning from the FY 2025-26)¹³. This initiative has helped the country save over H 1.08 Lakh Crore in foreign exchange, replace approximately 185 Lakh metric tonnes of crude oil, and cut down 557 Lakh metric tonnes of carbon dioxide emissions.¹⁴

The supply of grain-based ethanol is expected to increase to 4.66 billion litres whereas sugar-based ethanol supply for blending is pegged at 5.5 billion litres in FY 2025-26.¹⁵ In India, a greater number of distilleries are shifting to grain-based ethanol production. India is a grain-surplus country with around 165 Lakh metric tonnes of excess grain available annually.¹⁶ This surplus could be used for ethanol production, potentially generating over H 35,000 Crore in direct income for farmers.

According to NITI Aayog, India’s demand for gasoline is expected to touch 5,785 Crore litres per year by 2030. To tackle the resulting rise in emissions, the Government is pushing for cleaner alternatives like ethanol-blended fuel. The goal is to achieve 30% ethanol blending by 2030, which would need around 1,735.5 Crore litres of ethanol annually.¹⁷

Ethanol output with every metric ton of feedstock

Source:https://pib.gov.in/PressNoteDetails. aspx?NoteId=153363&ModuleId=3&reg=3&lang=1

13 https://en.vikaspedia.in/viewcontent/energy/policy-support/renewable-energy-1/biofuels/ethanol-blended-petrol-programme

14 https://primuspartners.in/docs/documents/Ethanol%20From%20Grains%20May%20Generate%20Rs%2035,000%20Crore%20In%20Earnings%20For%20 Farmers.pdf 15 https://www.spglobal.com/commodity-insights/en/news-research/latest-news/agriculture/061024-interview-grain-based-ethanol-supply-aims-to-double-as-india-targets-20-blending-goal 16 https://primuspartners.in/docs/documents/Ethanol%20From%20Grains%20May%20Generate%20Rs%2035,000%20Crore%20In%20Earnings%20For%20 Farmers.pdf 17 https://primuspartners.in/docs/documents/Unlocking%20%E2%82%B935,000%20Crore%20for%20Farmers%20The%20Untapped%20Potential%20of%20 Grain%20Ethanol%20April.pdf

IMFA at a Glance

Indian Metals & Ferro Alloys Limited (IMFA) is India’s leading fully integrated ferro alloys producer. Renowned for its operational excellence and sustainable practices, IMFA has built longstanding global partnerships by consistently delivering reliable and cost-effective solutions.

Largest 63 years

Fully integrated ferro alloys Industry Experience producer in India

Manufacturing Facilities

The company operates two manufacturing facilities in Odisha with three furnaces each at Therubali (82 MVA) and Choudwar (108 MVA) totalling 190 MVA. A greenfield project under construction at Kalinganagar, Jajpur District will add 66 MVA furnace capacity in FY 2026-27 capable of producing 100,000 tonnes per annum.

284,000 190 MVA

Production Capacity Smelting Capacity

Integrated Operations

IMFA is India’s leading fully integrated producer of ferrochrome, with operations spanning chrome ore mining, smelting and captive power generation. This vertical integration gives the company a strong competitive advantage through cost efficiency, consistent quality, and supply chain control. Key components of integration

1. Chrome ore mining IMFA has two captive chrome ore mines: Sukinda and Mahagiri. These mines ensure a reliable supply of high-grade chrome ore.

2. Captive power generation The company has a total captive power generation capacity of 204.55 MW, including thermal and 4.55 MWp solar power.

3. Ferrochrome smelting The Therubali facility operates 3 submerged arc furnaces with a capacity of 82 MVA, while the Choudwar facility has 3 furnaces with a capacity of 108 MVA. Combined, the company has 190 MVA of installed furnace capacity for ferro chrome production.

4. Logistics and sales A significant portion of IMFA’s ferro chrome is exported under long term contracts, providing pricing stability. Integrated logistics infrastructure and proximity to ports support efficient movement of raw materials and finished products.

Certifications and Standards IMFA is committed to maintaining high industry standards, with third-party certifications confirming the quality of its manufacturing processes. Our products meet ISO 9001:2015 Quality Management System standards, ensuring consistent excellence. Marquee Customers

IMFA’s strong focus on quality has helped it build a solid global reputation. Its valued clients include international leaders such as POSCO (South Korea), Tsingshan Group (China), E-United Group (Taiwan), and Marube jni Corporation (Japan), Zhenshi Holding Group as well as major Indian stainless steel producers like Shri Balaji Industrial Products Limited, Rimjhim Ispat, Shyam Metallics and BRG Steel, among others.

Opportunities and Threats

SCOT Analysis

Strengths Fully Integrated Business Model

Fully integrated operations with captive chrome ore and power translates to operational stability and superior margins as compared to non-integrated peers.

Safe and Award-winning Mining Practices

The Directorate General of Mines Safety has awarded IMFA several honours. These achievements reflect the Company’s resolute commitment to safety at Sukinda and Mahagiri Mines.

Resilient Demand Backed by Long Term Contracts

Significant share (>70%) of ferro chrome sales is against long term contracts with leading producers globally leading to off-take assurance. Moreover, monthly / quarterly reset in pricing provides stability while following market trends.

Challenges Legal and Regulatory Uncertainty

A judgement of the Hon’ble Supreme Court has held that States have the right to impose cess on mineral bearing land. This has created significant uncertainty and poses a risk of higher statutory payments although there is no outstanding demand at the moment.

Commodity Price Volatility

Fluctuations in global demand results in price volatility of ferro chrome; thus, it is difficult to accurately forecast earnings over the medium to long term.

Opportunities Diversification into Ethanol

A foray into ethanol, the first ever investment outside the core business interests of the Company, marks the entry into a rapidly growing sector boosted by the government’s ethanol blending programme.

Green Power transition

In line with regulatory requirements and with a view to reduce its carbon footprint while also expanding smelting capacity, the Company has entered into long term power purchase agreements with leading RE companies for 110 MW power on contracted basis.

Capacity Expansion

Work has started on a greenfield expansion which will add 100,000 tonnes per annum capacity in H2 FY 2026 thus enabling the Company to cater to increasing demand for ferro chrome, especially in the domestic market.

Threats

Currency Fluctuation

With more than 90% of output being exported, the Company is exposed to currency fluctuation which it mitigates through an active hedging strategy using various instruments.

Concentration Risk

A substantial portion of sales comes from 2-3 customers and any disruption will impact revenues. The Company has exposure to various markets and can redirect sales, if required; moreover, sales into the domestic market will increase when the expansion project is commissioned next year.

Substantial Production Capacity in China

Though China is the world’s largest producer of ferro chrome, it relies entirely on imported chrome ore. As a fully integrated producer, your Company is more competitive than its Chinese peers.

Business Segment Review

Ferro Alloys

IMFA’s smelting business is primarily focused on exports, with over 91.35% of its ferrochrome being sold to South Korea, China, Taiwan, and Japan. Due to strong, long-term relationships with stainless steel producers and a customer-focused approach, the company enjoys steady demand and stable operations.

Exports during FY 2024-25

Ferro Alloy Production and Sales

(in tonnes)

	FY 2024-25	FY 2023-24	% Change
Production	260,190	264,119	-1.49
Domestic sales	34,066	24,588	38.55
International sales	225,801	241,212	-6.39

Power

IMFA operates a captive power generation system with a total installed capacity of 204.55 MW, including 4.55 MWp from solar energy. This ensures a steady and reliable power supply, which is crucial for its power-intensive ferro chrome production. Going forward,IMFAplanstomeetthemajorityofitsenergyrequirements through a diversified mix of renewable sources, aligned with its long term energy transition and sustainability goals.

Power Generation & Sales

(in million units)

	FY 2024-25	FY 2023-24	% Change
Power generation	1092	1,171	-6.70
Sales	-	-	-

Mining

IMFA operates two chrome ore mines dedicated to meeting its own production needs, reflecting its policy to prioritise value addition. The company’s strong focus on sustainable mining and safety is backed by significant investment in modern technology and equipment.

Chrome Production

(in tonnes)

	FY 2024-25	FY 2023-24	% Change
Sukinda	285,851	319,692	-10.59
Mahagiri	416,012	349,888	18.90

Financial Review

Financial Performance

( in Crore)

	FY 2024-25	FY 2023-24*	FY 2022-23	FY 2021-22	FY 2020-21
Revenue from operations	2564.57	2780.17	2,676.39	2,602.95	1,844.23
Other Income	66.74	42.33	25.66	18.06	51.30
Total Income	2631.31	2822.50	2,702.05	2,621.01	1,895.53
EBITDA (before exceptional items)	530.51	649.83	514.48	828.83	389.03
Profit/(Loss) after tax	378.09	363.69	225.73	507.87	166.75
Cash Profit	432.69	441.72	333.01	618.09	331.61

( in Crore)

	FY 2024-25	FY 2023-24*	FY 2022-23	FY 2021-22	FY 2020-21
Earnings per share ( )	70.08	67.41	41.84	94.13	61.81
Cash EPS	80.20	81.87	61.72	114.56	122.92
Net worth	2322.29	2079.34	1,858.86	1,700.86	1,226.69
Capital Employed	2447.72	2187.48	1,970.33	1,945.85	1,782.63
Fixed assets	1124.99	1,075.02	1,038.84	991.59	1,017.21
[including Capital Work in Progress (CWIP)]

*Revised due to merger of Utkal Coal Limited with and in to the Company.

Key Ratios and Margins

( in Crore)

	FY 2024-25	FY 2023-24	FY 2022-23	FY 2021-22	FY 2020-21
Debtors turnover ratio (times)	20.24	24.62#	23.33	22.04	20.00
Inventory turnover ratio (times)	1.41	1.71	2.30	2.06	4.14
Interest coverage ratio (times)	17.73	15.30*	6	11.70	5.12
Current ratio (times)	2.67	2.39#	2.09	1.61	1.56
Debt equity ratio (times)	0.18	0.13#	0.20	0.30	0.32
Operating profit margin (%) (before exceptional items)	21.23	20.58*	15.34	27.70	15.93
Net profit margin (%) (after exceptional items)	15	13*	9	20	9.04

*Revised due to merger of Utkal Coal Limited with and in to the Company. ^#Revised due to reclassification/restatement

Change in Financial Ratios ( in Crore)

	FY 2024-25	FY 2023-24	Change (%)	Significance
Inventory turnover ratio	1.41	1.71	17.54	Not significant
Interest coverage ratio	17.73	15.30*	15.86	Not significant
Current ratio	2.67	2.39*	11.67	Not significant
Operating profit margin (%) (before exceptional items)	21.23	20.58*	3.16	Not significant
Net profit margin (%) (after exceptional items)	15	13*	15.38	Not significant
Return on net worth (%) (after exceptional items)	16	17*	5.88	Not significant
Return on Capital Employed (%)	19	24	-18.86	Not significant
Return on Equity (%)	17	18*	-6.99	Not significant

*Revised due to merger of Utkal Coal Limited with and in to the Company. #Revised due to reclassification/restatement

Source of Funds

Own Funds

IMFA’s net worth stood at 2,322.29 Crore as on 31^st March, 2025, vis-a-vis 2,079.34* Crore as on 31^st March, 2024.

* Revised due to merger of Utkal Coal Limited with and in to the Company

Equity

The Company has 53,954,106 equity shares with a face value of

10/- per share in the market. Its promoters held 58.69% of them as on 31^st March, 2025.

Reserves

IMFA’s reserves stood at 2,268.33 Crore as on 31^st March, 2025, compared to 2,025.38* Crore as on 31^st March, 2024. Free reserves constituted 94.53% of the total reserves.

* Revised due to merger of Utkal Coal Limited with and in to the Company

Application of Funds

Gross Block

The Company’s gross block of fixed assets stood at 1,993.78 Crore as on 31^st March, 2025, vis-a-vis 1,888.76 Crore as on

31^st March, 2024.

Capital Work In-Progress

IMFA’s capital work-in-progress was amounted to 74.52 Crore as on 31^st March 2025 as against 77.88 Crore as on 31^st March, 2024.

Long-term Borrowings

Long-term borrowings stood at 0.21 Crore as on 31^st March, 2025, as against 1.57 Crore on the same date of the previous year, as detailed here:

( in Crore)

	FY 2024-25	FY 2023-24
Long-term loans	0.02	0.20
Current maturities of long-term obligations	0.19	1.37
Lease obligations
Current maturities of finance lease obligations/Lease payables	1.69	1.65
Long-term maturities of finance lease obligations/Lease payables	39.70	40.87

FUTURE OUTLOOK

Your Company is in a strong financial position without any long term debt on its books and has substantial cash reserves to fund its expansion and diversification plans without taking undue risk. Moreover, a fully integrated business model makes us resilient in the face of an uncertain global environment. With global sentiment expected to turn positive as US tariff-related uncertainties settle down and India’s own economic growth and infrastructure development boosting demand for ferro chrome, your Company is well poised to extend its leadership position.

Risk Management

IMFA follows a structured approach to identify and assess potential risks based on how likely they are to occur and the impact thereof. The company then takes suitable steps to manage and reduce these risks. This structured approach helps the Company make the most of new opportunities while keeping associated risks under control.

Risk type	Description	Mitigation strategy	Outlook
Industry risk	The steel industry operates in cycles, so unexpected economic changes can influence its demand and profits. If demand slows down, companies may not fully use their assets and might have to sell at lower prices, which can hurt overall profitability.	IMFA’s fully integrated operations make it a competitive ferro chrome producer. This helps the company stay profitable even when prices are low. IMFA also focuses on building strong, long-term relationships with customers to become their trusted and preferred supplier.	Long term
Raw material risk	Unexpected events and geopolitical factors can cause raw material prices to rise quickly, leading to higher input costs.	To secure a steady supply of ore, the Company has invested in captive mines in Odisha’s Sukinda and Mahagiri regions. It has also developed its own thermal and renewable solar power generation. In addition, the Company has entered into long term agreement with leading RE companies for supplying hybrid renewable energy. Further, by signing long term contracts with vendors, the Company ensures a reliable supply of other key raw materials.	Short to long term
Regulatory risk	Failure to follow regulatory requirements or delays in compliance can have a significant impact on the business. Additionally, changes in laws or delays in regulatory approvals can negatively affect the Company.	The Company has a skilled and dedicated in-house team focused on ensuring compliance and keeping track of any changes in laws. With a robust internal control system in place, the Company operates efficiently, optimises resources, and stays fully compliant with all relevant regulations.	Medium term
Operational risk	Unexpected equipment failures or breakdowns can disrupt the Company’s operations. These disruptions can lead to inefficiencies, higher production costs, and weaken the Company’s competitive edge.	IMFA has established a reliable maintenance schedule for its equipment and implemented strict safety measures. The Company also focuses on improving efficiency through technology upgrades and process improvements. Additionally, it is covered under an ‘Industrial All Risk’ insurance policy to cover equipment breakdowns and potential profit loss. The company successfully implemented ERP which will improve the ease of doing business and bring more visibility on the performance parameters of the business.	Short term
Exchange rate risk	Since IMFA primarily serves the export market, its profit margins may be impacted by fluctuations in currency markets.	The Company manages currency risks using forward contracts, derivatives, and other hedging strategies to protect its earnings.	Short term

Human Resource Management

At IMFA, human capital continues to be our greatest strength and a key driver of our growth plans and sustainability initiatives. The Company’s Human Resources function plays a pivotal role in nurturing a culture that values agility, inclusivity, continuous learning, and performance excellence. With a future-forward mindset, IMFA is evolving its HR practices to build a workplace where individuals grow, teams thrive, and the organisation flourishes.

During FY 2024–25, we undertook multiple initiatives focused on workplace culture, learning and development, performance management, employee engagement, and advancing diversity and inclusion goals.

These efforts are anchored in the Company’s vision of building a responsive, future-ready workforce through communication, collaboration, and credibility.

2,072

Total employees across all locations of IMFA during FY 2024-25

Pillars of HR Transformation

Our people strategy for FY 2024–25 was anchored around four key pillars:

Cultivating a Culture of Inclusion & Agility

Enabling Learning & Growth

Enhancing Engagement & Belongingness

Driving Performance & Retention

Cultivating a Culture of Inclusion & Agility

In an evolving business environment, IMFA continues to prioritise a culture rooted in agility, inclusivity, and shared purpose. This year marked several transformative strides in aligning people practices with these values:

An exclusive Organisational Culture Survey was conducted to assess the current workplace culture and identify gaps between desired and actual behaviours. The findings enabled alignment between culture and strategic goals while enhancing employee engagement for better performance and informed leadership development.

A New IMFA Competency Framework was introduced, outlining a comprehensive set of behavioural expectations curated for each E-level band. This framework reinforced consistency and clarity, and developed peoples capability and leadership alignment across the organisation.

The Company reaffirmed its commitment to diversity and inclusion by actively recruiting women professionals in different roles and core technical functions, enhancing representationanddiverseperspectiveswithintheworkforce.

Cross-functional collaboration was promoted through the formation of diverse teams for various initiatives, reinforcing the belief that agility thrives when teams work across boundaries, build trust, and bring unique strengths together.

Learning and Development

At IMFA, learning is not a one-time event—it is a continuous journey deeply embedded in the organisations culture. The Learning & Development (L&D) strategy focuses not only on enhancing skills but also on unlocking potential, building future-ready teams, and driving sustainable growth.

This year, a comprehensive range of technical, functional, and behavioural learning interventions was tailored, addressing both organisational needs and individual aspirations. These initiatives were designed to empower employees across all levels - from frontline executives to senior leaders.

Exclusive behavioural sessions were conducted across all locations, centred on future-ready competencies like Workplace Agility, Design Thinking, Execution Excellence, and Thriving in Transitions—empowering employees with the skills to adapt, innovate, and lead in a rapidly evolving environment.

Functional and technical skill-building remained a strong pillar, with targeted workshops held at each location to ensure employees are continually updated and upgraded.

For the Junior & Mid-level Executives, Outbound Learning Programs themed #Rekindle 3.0 – Ride the Winds of Change, brought experiential learning into focus, with 72 employees participating enthusiastically in activities designed to build collaboration, trust, and problem-solving agility.

Across the year, 15,306 training manhours were completed through 648 learning interventions, reflecting the Company’s commitment to nurturing a capable and confident workforce.

Summer internships at operational sites and the Corporate HQ (CHQ) offered students practical exposure, thereby enriching the early talent pipeline.

A specialised GET Training Intervention titled Prarambh was launched, alongside a partnership with IIT Bhubaneswar for a five-day GET Bootcamp aimed at equipping Graduate Engineer Trainees with essential skills.

Learning effectiveness and return on expectations (ROE) were evaluated through Individual Development Plans, Reflective Learning Diary, & structured feedback mechanisms.

For IMFA, L&D isn’t just about knowledge acquisition - it is about unlocking human potential and enabling individuals to bring their best to work, every single day.

15,306 man-hours

Of training completed with 645 interventions

Enhancing Engagement & Belongingness

IMFA recognises that an engaged and cared-for workforce forms the foundation of a thriving organisation. The Company’s welfare and engagement initiatives are thoughtfully curated to foster a culture of well-being, belonging, and celebration.

This year, efforts expanded beyond traditional engagement to include holistic wellness, covering physical, emotional, and financial dimensions:

Extensive and focused health camps were organised to promote preventive healthcare and facilitate early detection of health issues.

Financial wellness programmes were introduced to equip employees with tools for sound financial planning and security.

Stress Management sessions and workshops on Body, Mind and Wellness were conducted to help employees build emotional resilience and manage the demands of modern work life.

Fitness was fun and accessible with Yoga and Zumba sessions, which encouraged work-life balance and mental rejuvenation, and were conducted on International Yoga Day.

A customised self-defence workshop was organised to empower women employees with essential safety skills, alongside a series of engaging and insightful activities.

Cultural diversity was celebrated through Ethnic Day, and camaraderie was strengthened through the Annual Sports Carnival and Foundation Day celebrations.

A special highlight was the children’s event— "Invasion of the Giggle Gang: Season 2"—bringing joy to employees’ families and strengthening the community bond.

In FY 2024–25, a total of 301 employees received the Long & Dedicated Service Award (LDSA), following the introduction of the 5-Year Service Milestone Award across all locations.

From recognition programmes to meaningful engagements, IMFA’s initiatives reflect its commitment to creating a workplace where employees feel valued, supported, and inspired to bring their best selves to work.

Driving Performance and Retention

In FY 2023-24, IMFA sharpened its focus on strengthening performance management and retention. Targeted training modules were introduced to help define clear job roles and highlight the value of meaningful work.

Performance Management System (PMS) Initiatives

Mid-year and year-end review workshops were held to increase awareness about the Performance Management System (PMS).

Goal-setting sessions were also held to help employees define meaningful VALUE goals for FY 2024-25.

These initiatives, along with broader engagement and learning efforts, contributed to a low executive attrition rate of just 7.45%.

Digitalising HR for the Future

FY 2024–25 marked a significant leap in HR digital transformation at IMFA. It embraced a digitally empowered HR ecosystem, beginning with the launch of the Genius Portal—a platform designed to simplify and streamline key HR processes like payroll, leave & attendance, tax declarations, ensuring employee-HR interaction.

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Further, the Darwinbox HRMS platform was implemented to enable:

Seamless integration of core HR functions

Greater transparency in processes

Real-time insights for decision-making

A more intuitive employee experience across devices

This transformation has not only made HR processes more efficient but has also laid the foundation for a more agile, data-driven people strategy.

At IMFA, people-centric practices reflect a deep commitment to growth, inclusion, and purpose. With every initiative, every conversation, and every act of recognition, The Company continues to build a workplace where every individual thrives.

Health, Safety and Environment (HSE)

IMFA places the highest importance on employee safety and well-being, guided by a zero-fatality commitment. Strict safety protocols, regular trainings, and risk-based assessments are integrated across operations. Advanced technologies support hazard reduction and monitoring. A culture of safety ownership is fostered at all levels. These actions reinforce IMFA’s broader ESG vision of responsible and inclusive growth.

Health and Safety

At IMFA, ensuring the health, safety, and well-being of our employees remained a top priority during FY 2024–25. We continued to strengthen our safety culture by implementing forward-looking initiatives and upgrading infrastructure across all operational units to create a safer, more resilient work environment.

We deployed advanced technologies including AI-enabled surveillance systems and remote-controlled equipment to monitor high-risk operations and reduce manual intervention. These innovations have significantly improved operational visibility and lowered exposure to occupational hazards.

Comprehensive Arc Flash risk assessments were completed across all relevant installations. These were accompanied by the introduction of high-visibility boundary markings and enhanced safety signage. Regular emergency response drills, third-party safety audits, and participation in district-level crisis preparedness exercises further reinforced our emergency readiness.

We conducted structured training programs on critical safety procedures including Permit to Work (PTW), Lockout-Tagout (LOTO), confined space entry, and behavioural-based safety (BBS). Monthly safety meetings, SOP quizzes, and interactive employee engagement activities were conducted to foster collective ownership of safety protocols.

Key infrastructure improvements were carried out, including the installation of fire-resistant materials, enhanced fall protection systems, and additional emergency exits. These measures ensure a safer physical environment and better preparedness for emergency situations.

These proactive measures reflect IMFA’s unwavering commitment to health, safety, and sustainability. By continuously improving our systems, investing in people, and integrating safety into every layer of operations, we aim to build a workplace that is not only compliant but also empowering for every employee.

Initiative Details Location / Unit

AI Camera Surveillance AI monitoring detects unsafe behaviour and refractory lining issues with Choudwar alert notifications. and Therubali Remote-Controlled Equipment Enabled remote operations of mud-gun drills and taphole screens to Choudwar eliminate manual risk. and Therubali Arc Flash Risk Assessment Risk study completed with boundary markings for safety around HT All locations panels.

Full-Scale Emergency Drills Drills conducted with district authorities and crisis groups to ensure Choudwar preparedness. and Therubali Safe Start campaign Safety culture improvement through daily safety pledge and toolbox talk All locations before start of work Behavioural-Based Safety Training Safety culture improved through behavioural awareness sessions for all All Locations staff levels.

Awareness session on PTW, LOTO Enhanced operational safety through detailed training programs. All locations system and Confined Space Monthly SOP Quizzes & Mass Meetings Interactive quizzes and monthly discussions to reinforce safety All locations practices.

ISO 9001 Awareness Training Trained employees on QMS and internal auditing for continuous Choudwar improvement. and Therubali Fire & Electrical Safety Enhancements Dry-type transformers, fire retardant cables, and anti-tracking paint Therubali installed.

Fall Protection Systems Installed at critical height-risk areas including tarpaulin zones and crane All locations bays.

Emergency Exit Staircases New staircases added in EOT crane bays for quick evacuation. Unit-II Third-Party Electrical & Safety Audits Third party audits done to verify safety standards and risk compliance. All locations Gas Cutting & GCP Operations Training Employees trained in tool safety and plant maintenance. All locations Road & National Safety Week Campaigns Events with employee and family engagement on safe practices. Al locations Fire Safety Improvements Installation of Automatic fire detection and suppression system at DG Mining BU sets and Electrical control panels.

Flash Back Arrestors & Finger Protection Equipment-level safety upgrades to prevent flarebacks and finger All locations Mesh injuries.

Environment Initiatives

Sustainability is embedded in operations across IMFA’s facilities. Through focused initiatives in each division, the Company works to reduce environmental impact, conserve natural resources, and support a cleaner, more sustainable future.

Choudwar

Energy efficiency improvements by replacement of energy efficient motors, installation of photo sensors and cooling tower modifications.

Decanter of 6KL capacity installed at ETP for conservation of energy and elimination of sludge drying bed system.

A comprehensive water audit was carried out for Unit-I, Unit-II, and Unit-III by an independent third-party external agency to assess water usage, identify areas for optimization, and recommend efficiency improvements.

Installation of Retrofitted Emission Control Devices (RECD) in each DG set.

Therubali

Mechanized Road sweeping machine was introduced within the plant premises to control the fine particulate dust emissions from internal roadways.

Biomedical waste is being disposed of periodically to an authorized vendor, M/s Renewable Envirogic Pvt. Ltd. through the Common Bio-medical Waste Treatment and Disposal Facility (CBWTF).

Retrofit of flow restrictors in hand washing taps at canteen building area to reduce the flow rate from 7 lpm to 2 lpm.

Installation of water efficient cistern type flush tank of low capacity to reduce the domestic water consumption from 10 litres to 6 litres per flush.

Training & awareness programs are conducted on water Saving & water conservation to reduce freshwater consumption.

Water and wastewater audits are conducted by external government recognized agency, the National Productivity Council (NPC), to identify and control excessive water loss and to implement water conservation projects within the plant premises.

Replacement of bag filters at both the GCPs with highly efficient bag filters to reduce the particulate emission from GCP stacks.

Installation of two no’s of RT-DAS (Real-Time Data Acquisition System) hardware units for both the GCP stacks located inside the plant premises along with real-time data transmission of stack emission to the OSPCB (Odisha State Pollution Control Board) server.

Installation of Retrofitted Emission Control Devices (RECD) in each DG set.

Sukinda and Mahagiri Mines (Chromite)

Installation of time switches and photocell sensors at SMC and MMC lighting system for Automated on-off control of streetlights.

Implementation of energy-efficient LED streetlights at SMC, MMC, and the Colony.

Adoption of BLDC ceiling fans at SMC, MMC, and the Colony for improved energy efficiency.

Removal of the "Skip" component from the north and south sides of the 450 KW DD winder’s "Cage cum Skip" system to reduce energy consumption.

Installation of Retrofitted Emission Control Devices (RECD) in each DG set.

Several steps were taken to control erosion and stabilise waste dumps. We installed 5750 square meters of coir matting and applied 2357 square meters of grass thatching at SMC dump .

As part of reclamation activities, IMFA planted 4680 saplings across the dump slopes and backfilling areas at both Sukinda and Mahagiri Mines .

Sustainable Operations with Fly Ash Utilisation

At the Choudwar facility in Cuttack, IMFA operates three types of power plant boilers: 30MW, 50MW, and 120MW. The ash from the 50MW boiler, which isn’t suitable for brickmaking, is used for land reclamation. Once the degraded land is filled with ash, it’s covered with soil and planted with greenery, turning barren areas into green zones.

The 30MW and 120MW CFBC boilers generate mostly fly ash of about 90%. This is used in IMFA’s two brick manufacturing units, each producing up to 100,000 bricks daily. A 60,000 tonnes per annum Low Density Aggregate unit supplements in-house utilisation.

In addition to this, IMFA supplies fly ash to external brick, cement, and ready-mix concrete companies, following all regulatory requirements. Transportation is done using tarpaulin-covered vehicles to ensure safety and environmental compliance.

We have achieved 100 % utilisation ash since beginning of power plant operation. Every month fly ash generation, utilisation and left over stock is uploaded in company’s website, CPCB website & CEA website.

Awards and Recognition for HSE Best Practices

IMFA and its units have received several awards and recognitions for excellence in safety, energy conservation, mineral preservation, and overall operational performance.

Choudwar Unit

Received Kalinga Safety Excellence Gold Award for the performance year 2023 in Power plant sector below 200 MW, in the 15^th National Safety Conclave 2024.

Received Kalinga Excellence Platinum Award in Ferro Chrome Sector for the performance year- 2023 in the 15^th National Safety Conclave 2024.

IMFA received 4.25 Star Energy Conservation Award-2024 from CII Eastern Region.

Unit-III received Odisha State Energy Conservation Award-2024 in the category of CPP/IPP.

Therubali Unit

Therubali Unit bagged prestigious Platinum in Kalinga Safety Excellence Award (Large-Scale Industries, Ferro Alloys Sector) at Odisha State Safety Conclave 2024.

Received Pollution Control Excellence Award from the State Pollution Control Board, Odisha for adoption of effective pollution control measures and sound environmental management practices in the year 2024.

Sukinda Mines

"Kalinga Environment Excellence Award" in 5-Star Category, for the Performance Year 2023". in June 2024.

Kalinga Safety Excellence Award - in Platinum Category for the Performance Year 2023 at National Safety Conclave-2024 held on dtd. 18^th Dec 2024 at Bhubaneswar.

In receipt of multiple prizes in various categories at Zonal Final Day Function of 42^nd Annual Mines Safety Week Celebration 2024 held on 07.12.2024 at AM/NS India-Barbil. [Categories of Awards are (i) 1^st in Electrical maintenance (ii) 1^st in Drilling, Blasting & handling of explosives (iii) 2^nd in General working (iv) 2^nd in Publicity Propaganda (v)3^rd in Mechanical maintenance (vi) 3^rd in Training, Health & Welfare].

2^nd Prize on Mines Safety Award-2024 organised by All India Mines Safety Organisation held on dtd.28.07.2024 at Kolkata.

Mahagiri Mines (Chromite)

"Kalinga Environment Excellence Award" in 4-Star Category, for the Performance Year 2023" in June 2024.

Rescue Team members got 1^st Prize in various category like "Best in Rescue Relay" , "Best in Theory", "Best in FAB(Fresh Air Base)" and got 2^nd Prize in "Best Captain" on 28^th Zonal Mines Rescue Competition 2024 held at MCL, Brajrajnagar, Talcher Area.

Rescue Team of MMC has won the 1^st Prize in FAB(Fresh Air Base) at 53^rd All India Mines Rescue Competition 2024 held on 20.12.2024 at BCCL, Dhanbad.

Rescue Team member won the 1^st Prize in "Best Member in Rescue Team" at 53^rd All India Mines Rescue Competition 2024 held on 20.12.2024 at BCCL, Dhanbad.

Kalinga Safety Excellence Award - in Gold Category for the Performance Year 2023 at National Safety Conclave-2024 held at Bhubaneswar on dated 18^th Dec 2024.

In receipt of multiple prizes, the Zonal Final Day Function of 42^nd Annual Mines Safety Week Celebration 2024 held on 07.12.2024 at AM/NS India, Barbil.

[Categories of Awards are – i) General working- 1^st (ii) Electrical Maintenance -1^st (iii) Mechanical Maintenance -1^st (iv) Lead Indicators, Emergency Preparedness, Mock drill & Accident Statistics - 1^st (v) Innovation & Digitization - 1^st (vi) Publicity Propaganda - 1^st]

Team-MMC(Male) received 1^st Prize in Quiz and Team-MMC(Female) received 3^rd Prize in Quiz in the Zonal Final Day Function of 42^nd Annual Mines Safety Week Celebration 2024 held on 07.12.2024 at AM/NS India, Barbil.

3^rd Prize on Mines Safety Award-2024 organised by All India Mines Safety Organisation held on dtd.28.07.2024 at Kolkata.

Internal Control System

The Company has established an Internal Control System that aligns with its size, scale, and complexity of operations. This comprehensive system facilitates efficient operations, ensures optimal use of resources, protects assets, and ensures compliance with relevant laws and regulations. These control measures enhance the Companys resilience and prevent losses or unauthorised use of assets through robust checks and balances. The Internal Audit function has a clearly defined scope and authority, and the Company has engaged an independent firm of Chartered Accountants to perform the internal audit function. The management and audit committee of the Board oversee and recommend corrective actions based on the audit findings to enhance operations.

Cautionary Statement

The Management Discussion and Analysis section of the document may contain forward-looking statements regarding the Companys objectives and predictions, as defined by relevant laws and regulations. It is important to note that the actual results may differ significantly from these statements due to various risks and uncertainties. These risks and uncertainties may arise from economic and political conditions in India, fluctuations in interest rates and exchange rates, and the impact of new regulations and government policies on the Companys business and its ability to execute its strategies. The Company does not guarantee the accuracy of these forward-looking statements and does not commit to updating them.