Debt-ridden IMFA suffers loss of Rs 74 crore in Q4 of FY 19

Bhubaneswar (Orissa) [India], May 18 (ANI): Debt-laden Indian Metals and Ferro Alloys (IMFA) reported on Saturday revenue of Rs 434 crore in fourth quarter (January to March) of 2018-19 compared to Rs 443 crore in the year-on period.
The fully integrated producer of ferro alloys stradling the value chain from mining to smelting said its profit of Rs 4.6 crore in Q4 of FY 18 turned into a loss of Rs 73.8 crore in Q4 of FY 19. Earnings before interest, tax, depreciation and amortisation (EBITDA) came down to Rs 45 crore from Rs 62 crore.
Exports, however, were up at Rs 395 crore versus Rs 378 crore in the same period. The company has a long-term debt of Rs 547 crore, it said in a statement adding that exceptional charge of Rs 73.71 crore on account of impairment of investment and related expenses led to the loss in quarter gone by.
In the entire FY 19, IMFA clocked revenue of Rs 1,634 crore, down from Rs 1,769 crore in previous fiscal, exports of Rs 1,470 crore, down from Rs 1,507 crore, EBITDA of Rs 285 crore, down from Rs 461 crore, and profit of Rs 11 crore, down from Rs 187 crore.
The ferro chrome production of 216,046 tonnes came down from 234,443 tonnes in FY 18, sales dropped to 212,406 tonnes from 238,807 tonnes and power generation dipped to 915 million units from 946 million units.
IMFA has a capacity to produce 284,000 tonnes of value added ferro chrome per year.
"We have registered strong operational numbers in a challenging environment which is reflective of the inherent strength of our fully-integrated business model and long-term relationships with customers," said company's Managing Director Subhrakant Panda.
"However, exceptional items have proved to be a drag on profitability. We are evaluating acquisition opportunities and will look to expand capacity," he said.
(ANI)