Indian Metals -; Ferro Alloys stock plunges 5.5% despite strong Q3FY22 earnings

28 Jan 2022 , 09:17 AM

Indian Metals & Ferro Alloys Ltd, the country’s leading producer of ferro alloys has announced its quarterly results for the period ending December 31st, 2021.

Highlights of Q3 FY22 vs Q3 FY21 (yoy)

• Revenues of Rs655.22cr vs Rs425.46cr
• Exports of Rs583.46cr vs Rs397.01cr
• EBITDA of Rs214.87cr vs Rs73.05cr
• PAT of Rs121.74cr vs Rs32.14cr

Highlights of 9M FY22 vs 9M FY21

• Revenues of Rs1846.24cr vs Rs1268.12cr
• Exports of Rs1717.87cr vs Rs1175.89cr
• EBITDA of Rs634.88cr vs Rs246.53cr
• PAT of Rs365.24cr vs Rs100.34cr

Operational Highlights

• FeCr production of 61,545 tonnes
• FeCr sales of 55,403 tonnes
• Power generation of 274 mu

Business Highlights

• Prepayment of Rs214cr long term debt as on date.
• Debt: Equity ratio of 0.07; shall be debt free by March 2022
• Intimation received regarding allotment of 124.26 acres land in Kalinga Nagar for FeCr expansion project

Commenting on the results, Subhrakant Panda, Managing Directorsaid, “Our record performance in the ongoing fiscal has enabled us to prepay long term debt thereby strengthening Balance Sheet ahead of our proposed 100,000 tonnes per annum ferro chrome expansion. I am grateful to the State Government for allotting land for the project which we will now take us expeditiously.

Ferro Chrome demand continues to be strong, and a trend reversal of prices is seen with recent upward movement. We expect strong financial performance in the next fiscal which will enable us to focus on growth while also rewarding shareholders.”

At around 9:17 AM, Indian Metals & Ferro Alloys was trading at Rs375 per piece lower by 5.47% on the BSE.