India · Delayed Price · Currency is INR Indian Metals and Ferro Alloys Earnings Call Transcripts
Fiscal Year 2027
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Q2/H1 performance improved on capacity additions and stronger prices. Output is set to ramp up, while cost pressures may tighten margins temporarily; INR 375 crore capex targets ore growth and higher-value ferrochrome.
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Q1 FY27 set records on firm ferrochrome prices and higher KNR 2 volumes. FY27 production expectation was trimmed to ~380,000 tons due to transformer and gas-cleaning work, while further volume growth is expected as furnaces stabilize.
Fiscal Year 2026
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Q4 PAT rose to ₹103 crore as ferrochrome realizations increased, while growth projects and renewable power expand capacity. Q1 FY27 prices and volumes are expected to improve; commissioning delays, startup costs and forex volatility remain key watchpoints.
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Q3 FY26 profitability improved as ferrochrome realizations rose, with EBITDA margin above 23%. Similar Q4 margins are expected if prices hold; capacity additions and higher ore-raising targets underpin FY27–FY28 growth.
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Q2 PAT rose 8% QoQ to ₹98.77 crore, with EBITDA margin at 19.3%; higher realizations are expected to lift Q3 and Q4 performance. The Tata Steel asset deal is set to take capacity beyond 500,000 tons, supported by captive ore and internal funding.
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Q1 FY26 revenue and margins improved sequentially, with a net debt-free balance sheet and expansion projects progressing. Costs and demand remain exposed to input, forex, geopolitical and seasonal volatility; domestic focus is expected to increase as capacity expands.
Fiscal Year 2025
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FY25 revenue and EBITDA declined as ferrochrome realizations weakened, while PAT edged higher. Growth plans include ferrochrome expansion, ethanol and 110 MW of renewable projects, with commissioning milestones through 2026.
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FY25 generated INR 430 crore of free cash flow before dividends despite weak ferrochrome pricing. Kalinganagar expansion and mine investment underpin growth, while market recovery remains uncertain and price benefits lag by 1.5–2 months.
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Q3 profit was pressured by falling ferrochrome prices, while integrated operations helped cushion the impact. Management expects near-term softness but sees potential recovery and is advancing capacity and ethanol projects.
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Q2 profits exceeded expectations, with EBITDA of INR 176 crore and a 25.8% margin. Near-term margins are expected to hold, while major furnace, mining, ethanol and renewable-power investments underpin expansion plans.
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Q1 turnover declined 5% QoQ, but PAT rose 42% on better realization and lower costs. Higher Q2 volumes are expected to lift profitability, while FY ferrochrome output is guided at 250,000–260,000 tonnes.
Fiscal Year 2024
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FY24 set operational records in ferrochrome, ore and power, while Q4 included substantial Utkal Coal impairments and interest recognition. FY25 production is expected near 250,000–260,000 tons, with expansion and improved realization supporting the outlook.
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Q3 FY24 revenue rose 10% YoY and profit increased tenfold, driven by improved realizations and lower costs. Expansion plans target higher ferrochrome and ore capacity, with land possession and market pricing among key uncertainties.