AGM 2025

Jul 30, 2025

Summary

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.

Good afternoon, ladies and gentlemen. I welcome all of you to this 63rd Annual General Meeting of the company. The Ministry of Corporate Affairs and Securities and Exchange Board of India has permitted the holding of Annual General Meeting through video conferencing or through other audio visual means without the physical presence of the members at a common venue. Accordingly, the AGM is being conducted through video conferencing. I confirm that all statutory registers, documents, as required under the provisions of Companies Act 2013 are kept open for inspection electronically. As necessary quorum is present, I now request Honorable Chairman, Mr. N. R. Mohanty, to conduct the proceedings of AGM. Thank you. Over to Chairman. I call the meeting to order. Ladies and gentlemen, it gives me great pleasure in welcoming all of you to the 63rd Annual General Meeting of your company. The annual report for the year ended 31st March 2025 has been circulated. With your permission, I shall take it as read. Company's performance. It was a defining year for your company, where our inherent resilience helped us to navigate a challenging global environment. Revenue from operations during the year under review stood at INR 2,564.57 crores, including foreign exchange earnings of INR 2,322.29 crores. A slight contraction from the previous year's figure of INR 2,780.17 crores and INR 2,597.12 crores respectively. EBITDA before exceptional items was also lower at INR 530.51 crores, previous year, INR 607.50 crores, on account of lower ferrochrome price realization. However, profit after tax was marginally higher at INR 378.9 crores, previous year, INR 363.69 crores. On account of cost optimization. It is worth mentioning that during the year under review, your company achieved the highest ever chrome ore raising, which took at 701,863 tons. Construction work on the 100,000 tons per annum greenfield ferrochrome expansion project at Kalinganagar, Jajpur district, is ongoing, and orders have been placed for major equipment. As such, we expect to commission the first furnace in June 2026 and the second, September 2026, which will mark a major milestone in our company's growth plans. Ethanol business. Your company has received necessary statutory clearances for the ethanol project, and also placed orders for major equipment. Construction work is underway, and we expect to commission the unit in the first quarter of 2026. The strategic foray into the ethanol was conceived to utilize land and other infrastructure at our Therubali unit and enter rapidly growing sector, driven primarily by India's fuel blending program. Others, we are also exploring downstream value-added products. Renewable energy. Your company has signed binding term sheets, power purchase agreement, and related documents with two leading renewable energy players, that is JSW Energy for 70 MW, with an equipment investment of INR 83.26 crores, and AMPIN for 40 MW, with an equity investment of INR 61.60 crores. Both hybrid renewable energy projects are expected to be commissioned by June 2026 and will substantially reduce our carbon footprint to the tune approximately of 612,000 tons carbon dioxide per annum. Future outlook. Your company is recognized as a competitive and customer-oriented producer of ferrochrome and will build on this strong position to emerge as a global leader. Our endeavor matches with the rise of India as an economic power, becoming the fourth largest economy in the world. The ongoing greenfield ferrochrome expansion, which will add 40% production capacity and diversification into ethanol are all timed in this regard. Our fully integrated business model makes us fundamentally strong and resilient and does help deliver superior performances. Sustainability. We recognize our environment and personal responsibilities, and through an integrated ESG approach, aim to create lasting value for all stakeholders by making sustainability a core focus. Through the progressive adoption of climate resilient practices and the pivot to renewable energy, we will reduce our carbon footprint. Further, we are deeply committed to protecting biodiversity and undertake several activities such as plantation drive, erosion control measures, and ecosystem restoration. Scheme of amalgamation. At a meeting held on 31st July 2024, the board of directors of the company had approved a scheme of amalgamation in terms of Section 233 of Companies Act 2013 between Utkal Coal Limited, transferor company, and Indian Metals and Ferro Alloys Limited, transferee company, and their respective shareholders and creditors, which was sanctioned by the Regional Director, Eastern Region, Kolkata, Ministry of Corporate Affairs by its order dated 28th February 2024. The order of the Regional Director, Eastern Region, Kolkata, was filed with the Registrar of Companies, Cuttack, Odisha, and the merged schemes became effective from 28th March 2025. Accordingly, transferor companies stands amalgamated with and into the transferee company in accordance with the provision of the scheme. Coal block compensation. During the year under review, Office of Nominated Authority, Ministry of Coal, Government of India, gave effect to the final compensation order dated 5th December 2023. By disbursing the balance amount of INR 221.37 crores to establish M/s Utkal Coal Limited, the wholly owned subsidiary of the company, now amalgamated with the company towards valuation of compensation of freehold and leasehold land pertaining to Utkal C coal mines. This was in addition to the part compensation of INR 131.53 crores received in the previous financial year. Further, during the year, UCL has also received INR 8.63 crores from the nominated authority and the balance compensation towards the cost of mines infrastructure and subsequently an amount of INR 7 crores from the new allottee towards the R&R of sites. Corporate social responsibility. Your company approaches corporate social responsibility with a view to promoting inclusive growth by implementing multi-sectoral sustainable projects and enable marginalized community to live a healthy, dignified, and meaningful life. Our CSR efforts are geared towards holistic development through outreach program in healthcare, education, and skill development. Besides undertaking infrastructure development and providing disaster relief The Bansidhar & Ila Panda Foundation and Indian Metals Public Charitable Trust are the primary entities through which your company undertakes these efforts, on which INR 11.01 crore was spent during the period under review. Human resources and industrial relations. Human capital is our greatest resources and the key driver of our growth and diversification plans. We promote a culture that values agility, inclusivity, and continuous learning, and provide a safe and secure workplace where individuals can grow and teams thrive. I take this opportunity to express my heartfelt appreciation to all our employees for their unwavering dedication and commitment, which has helped the organization succeed. I am also happy to inform you that during the year under review, industrial relations at the company's various units remained cordial. Acknowledgment. On behalf of the board of directors and the management, I would like to place on record our sincere appreciation of the exemplary service rendered by the workforce during the year under review. I also express our gratitude to the team of lenders and working capital bankers for their support. Further, I thank the stakeholders, customers, central and state government and their agencies, and the public at large for their continued support and confidence reposed in us. Finally, as you all are aware, I am stepping down as a director and Non-Executive Chairman of your company at the conclusion of the AGM. It has been an exceptional journey, and I have enjoyed interacting with all of you over the years. I would like to take this opportunity to wish the company and all of you the very best for a successful future. Thank you. The company has given option to members to submit their questions in advance with regard to the agenda matters to be placed at the AGM. However, the company has not received any query from the members. The company had also given option to members to register themselves as speaker to any questions pertaining to agenda items to be placed at 63rd AGM, which the company has received. Pursuant to the company has received requests from five members. Hold. I cannot find one more somewhere here. five members, Mr. Rishi Keshav Chopra, Mr. Jitendra R. Shah, Mr. Jaydeep Bakshi, Mr. Manjeet Singh, Mr. Pranav Jain. Now, I would request the speakers to speak one by one according to their numbers. Due to time constraint, I would request each speaker to restrict their speech to maximum 2 minutes. Mr. Rishikesh Chopra, please speak. He is not joined? Okay, then the second speaker, Mr. J.R. Shah. Okay, then the third speaker, Mr. Jaydeep Bakshi. Mr. Bakshi? Mr. Bakshi? Yes. Very good afternoon, Chairman and Board of Directors. Myself, Jaydeep Bakshi, connecting from the city of Kolkata. Sir, your initial speech was very much informative and stressing more about our company affairs. Just want to know regarding the AI technology, which is now the buzzword of every industry. How much are we implementing in this and also for our efficiency growth also? Thought process regarding our circular economy and waste management, kindly share some thoughts. Finally, sir, regarding this green energy, where this carbon reduction policy and carbon credit points, how much are we earning? Kindly share some thoughts. That is all from my side, and I thank our Company Secretary and our entire team for giving me an opportunity for attending this video conference. Thank you, sir, and wish the company all the best in the coming years. Thanks, Mr. Bakshi. Should I respond to that now or later? All together. Okay. And Mr. Manjeet Singh. Then Mr. Pranav Jain. Yes. Good afternoon to all the esteemed members of the board, and thank you for giving me this opportunity to speak at our 63rd AGM. First of all, congratulations to Mr. Mohanty for his remarkable contribution to the company. It is an honor to be here at the AGM of our company that has not only withstood the test of time but has consistently demonstrated leadership in India's ferroalloy industry. I would like to extend my sincere appreciation to the entire team for their dedication, vision, and operational excellence. We not only over-perform and out-perform in great times, but also make sure to propose commendable results even in tough times, as we saw in our latest Q4 FY 2025 results, where despite headwinds, we had posted a 12% EBITDA margin. This just goes to show that we are no longer a commodity business. I would also like to acknowledge the company's efforts in driving sustainability and development and its responsible approach to environmental compliance with its renewable energy initiatives. The recent efforts towards capacity optimization, market diversification, and value-added production give shareholders like us confidence that IMFA is preparing not just for the next quarter, but for the next decade. With that, I just wanted to ask a couple of questions. Firstly, with the renewable energy initiatives, are we expected to receive any cost optimization benefits, or it is just for the carbon credits? Secondly, are we looking at pursuing any other mining operations beyond where we are currently? Also, a sincere request from my end, we would love to come and visit the site of our plants and get a whole experience of how IMFA does its production. Thank you. Thanks a lot. I would request our MD to reply the queries. SJ. Thank you. Let me start out by giving a little bit of insight into the company's performance, then I will share some thoughts as well as try my best to answer the questions which have been asked by the esteemed shareholders. As you would have seen, we have worked very hard over the years to build a fully integrated business model, which is what sets us apart from practically any other producer in India and puts us in a unique sort of a position, even globally, where we are able to be resilient. I have always mentioned that ours is a sector which tends to be somewhat cyclical, and there is not too much that can be done about the cyclicality except to build a degree of resilience which enables us to ride that wave. What has helped in that regard also is that for the past 18 months or so, we have been long-term debt-free. We have accumulated a kitty, which we have used to first bring down our debt, then reward shareholders, and now we are, in fact, geared for growth. We will be doing so without taking any undue risk. As I said, I think we find ourselves, by the grace of God, in a very good position. You are aware of the expansion project which is coming up in Kalinganagar. That will be online by middle of next year. We are also, after 60-odd years, foraying, I believe, the strategic foray into ethanol, which is a rapidly growing sector. Recently, the government has also announced plans for 27% ethanol blending, so demand is expected to be strong. We are exploring opportunities in downstream value-added products, and if we are able to crack that code, as I mentioned in a recent investor and analyst meet as well, then we will explore further investments without taking any attention away from the core business, which is ferroalloys. There was a question by Mr. Pranav Jain relating to other mining opportunities. That was, in fact, something I was intending to cover in my opening remarks as well. We are, of course, in as much as our chrome ore mining is concerned, we were at 6 lakh tons for a period of time. This year, as in 2024-2025, we have crossed 7 lakh tons for the first time, and we will be in line with our expansion plans, gradually increasing our ore output in the first stage to 9 lakh tons and eventually to 12 lakh tons. That being said, we are looking at other opportunities, whether in related sectors like manganese, et cetera, in the auction regime. Whenever such mining opportunities come up, we do an evaluation based on reserves, based on grade of ore, based on logistics, and something I have mentioned in the past, that we are always open to growth opportunities, to diversification opportunities, but we will do so only if it makes sense, and makes sense both financially, as in it must be value accretive, and makes sense because we bring something other than money to the table, in the sense that it must complement one or more of our key operational capabilities. So, we are never going to look at something where the only thing we bring to the table is the ability to invest, because I do not think that is necessarily viable in the long term. We have to be able to understand the business and get value out of it. Now, obviously, beyond just the adjacencies, which is manganese and other minerals, we are keenly looking at opportunities in critical minerals. That is an area which is very futuristic. It is something which complements our ability in terms of one of our core abilities, which is long experience in mining. As and when these assets come up in terms of auction opportunities or whatever, we will certainly be exploring this. As I said, if it makes sense, both financially and otherwise, we will keenly explore this and move ahead. Clearly we are geared for growth. Over the next 18 to 24 months, we will certainly deliver rapid growth. The idea is to ensure that we bring these projects onstream, on time, and quickly extract value from them. Let me now answer some of the questions which were raised. Mr. Bakshi asked about the use of AI technology. I have to be honest, we are not using AI to that extent per se, but we are certainly making substantial investments both in hardware as well as other investments towards digitalizing operations, towards having a digital strategy in place. We are working with a leading consultancy company to see how we can extract more efficiency and value out of our existing operations and upcoming expansions through the use of digitalization. That is something that is certainly topmost on our mind. Ranging all the way from predictive maintenance to various things. But yes, AI is something that I guess we will graduate to in due course. There was a question about circular economy and waste management. That is something which is certainly very important. It is not just from a statutory or a compliance point of view. Clearly circular economy and waste management is something that we afford a lot of priority to. As far as green energy is concerned, again, the point here is not so much to do with statutory or compliance requirements, which of course are paramount. As you know that the renewable obligation is on an upward track. With the 110 megawatts being commissioned by middle of next year, 2026, approximately 40% of our energy or so will come from renewable energy, which means we will definitely be compliant with regulations. But we are also looking at opportunities. First and foremost, there is a great deal of demand for green ferrochrome, particularly if you look at the European market. While CBAM is still sort of evolving, those are the sort of markets that we can break into with green energy. That apart from a cost perspective. Now to sort of switch over to the points which were raised by Mr. Pranav Jain, that renewable energy is also about cost optimization because we have got fairly competitive rates, and these are rates which by and large will remain steady for 25 years barring any regulatory changes. That is something that works well for us. Before I proceed any further, I would like to thank Mr. Jain for his kind words about the performance of the company and the management team. I am grateful of this acknowledgment. We make it a point to engage our stakeholders and take on board all feedback and all comments and suggestions. In that context, let me also mention that inasmuch as a visit is concerned, we are certainly open to it and we will try and set it up on certain dates which work for a larger group of people and make that happen. I believe I have answered the queries. Do we want to give another chance to anybody who had I think we can just see if anybody The three people who had registered but has not logged in. I will just ask if they have logged in now, we can take the questions. If not, then we will go on. Hrishikesh Dhokra, Mr. Jyotindra Shah, and Manjit Singh. Anybody join? Last Mr. Rishikesh Chopra. Mr. Rishikesh Chopra. Mr. Jyotindra Shah and Manjit. Mr. Jyotindra Shah. Manjit Singh. Mr. Manjit Singh. Has anybody joined? Okay. Mr. Shah, please speak. Yeah. Thank you very much for the opportunity. I have three macro questions which are- It's not audible, sir. Sir, voice is not audible. If you can just check that part. Okay. Now am I audible? Yes. Okay. Thank you very much for the opportunity. No, again, not audible. Hello? I think you have to come closer to your laptop or mobile. Okay. Now I'm okay? Bit. Now a little. Little better. Yeah. Okay. Thank you very much for the opportunity. Now, I have three macro questions which are several in IMFA. Now, number one is already answered by our MD, Mr. Subhrakant Panda, about the critical mineral. That is a very good opportunity. Now, second point is this, our major rival, I would not like to name them, they are finding their ferrochrome operations unviable because of 95% premium they have to pay on the ore, and they are understood to have surrendered Sukinda chrome mines and also reduced ferrochrome production from 50,000 tons to just 15,000 tons per month. They are not interested to continue with the ferrochrome business. That is going to open up a very good opportunity for IMFA, particularly in the domestic market. I would like to have views of our MD. One more point is regarding South Africa. For the first time in the history, Samancor and Glencore, they have proposed 100 USD export duty on chrome ore export, which will help the South African government as well as the ferrochrome industry as such. Now, it will cost about 20,000 INR ton extra to China, and to that extent, suppose it is implemented, it will bring bumper profit to IMFA, and that will be very good for us. I would like to have views of our MD, Mr. Subhrakant Panda, about what is happening in the South African export front. Thank you very much. That's all for me. Thank you. As far as critical minerals is concerned, I have already answered that. Just to reiterate, we remain open to opportunities, not just in adjacent minerals like manganese, but also critical minerals which is futuristic. Anything which is value accretive and we are able to bring some experience and core abilities to bear, we will certainly consider after due analysis. Secondly, as regards the question about an acquisition opportunity in ferrochrome, what I would like to clearly mention here is that, we have our growth plans chalked out. As you know, phase one of our expansion is underway, which we will be commissioning 100,000 tons by next year. Yes, the plan is at the moment we are 90%-95% exports. The plan with additional capacity is certainly to cater more and more to the domestic market. Phase two has been approved in principle by the state government in terms of single window clearance. But we have not taken any concrete steps on that in terms of land acquisition or applying for environment clearances, et cetera. Either which way, we are clear about the growth plan, which is the phase one underway or phase two, for which we have in-principle clearance. As and when any opportunity comes along, the same principle applies, that if it is value accretive and we bring some experience and core expertise to bear, then we will accordingly look at that. Of course, through acquisition opportunities, if we can accelerate our growth plans, then that is certainly something that we will look forward to. Thirdly, the third question was with regard to the South Africa export duty on chrome ore. As those of you who are familiar with the ferroalloys business would know that South Africa has the largest deposit of chrome ore in the world, close to 80%, if not a little bit more. But the manufacturing ecosystem for ferrochrome has sort of deteriorated over the years on account of various factors, including inland logistics costs and rising electricity costs. As a result of which, more and more ore is getting exported out of South Africa. China has emerged as the largest producer of ferrochrome in the world without having any chrome ore reserves, and sources the bulk, if not the entirety of its chrome ore from South Africa. So, with prices being what they were, especially in Q4, of course, we have seen a substantial rebound in prices, as is evident from our Q1 numbers for FY 2026. But not just in India, but globally, in South Africa as well, there have been production cuts and a call for measures to bring ferrochrome production back to South Africa. in that regard, I understand, just to add one additional point, that they are talking about, and in some cases implemented some preferential energy tariffs, lower energy tariffs, but subject to availability of electricity, which will sort of negate some of the significant disadvantages that exist in South Africa for value addition. Yes, there has been reportage about export duty on chrome ore, but this is not for the first time that it has been talked about. It has been talked about multiple times before, without actually progressing into the imposition of the actual duty. So we will wait and see. But these are all external factors. What we focus on is to make ourselves as strong, as resilient, and as competitive as possible so that we become one of the lowest cost producers in the world. And stand to benefit on the basis of our own strengths rather than some other producing country imposing export duties or not imposing them. But I do agree on one count that if an export duty does come through, then it will certainly change the dynamics of the ferrochrome industry, at least in as much as China's dominance is concerned. But I have enough faith in our strength and resilience due to our core capabilities that we will look to deliver superior performance going ahead, especially when new capacity comes online, whether that is by way of our organic growth or through acquisition opportunities. Thank you. May I, before we go on to the remainder of the agenda, I would also like to take this opportunity on behalf of the board, on behalf of the management team, and I am sure every single shareholder will join me in profusely conveying gratitude to Mr. N. R. Mohanty for his stellar presence on the board of over 20 years as an independent director and several of them, for the last four, if I am not mistaken, as Non-Executive Chairman of the company. Sir, we have benefited tremendously from your wisdom, your sagacity, your knowledge, and your cool and calm demeanor, which has come in handy many a time. While you may be stepping down from the board and as Non-Executive Chairman upon completion of your term, the connection certainly continues. We will continue to keep in touch and continue to look forward to your guidance, your wisdom, and your blessings so that what we have brought forward this far, we carry it along with humility and with a keen focus on superior performance. Thank you very much from the bottom of my heart, and I am sure everybody in this room and on this call and associated with IMFA in any way recognizes and is grateful for your contribution. Extremely grateful for your kind praise. Thank you so much. Agenda item number 1 to 6 of the AGM notice, dated 21st May 2025, are now open for voting. I declare my order for the e-voting of all resolutions for the ordinary and special business as set out in item number 1 to 6 of the AGM notice and request all the members, other than those who had voted through remote e-voting mechanism, to participate in the e-voting. The company had extended remote e-voting facility to the members of the company in respect of business to be transacted at the Annual General Meeting. The remote e-voting commenced at 9:00 A.M. on 26th July 2025 and ended at 5:00 P.M. on 29th July 2025. Mr. Surya Prakash Mohapatra, practicing Chartered Accountant, was appointed as the scrutinizer by the board for scrutinizing the remote e-voting and e-voting process during the meeting. On receipt of scrutinizer's report, the result of e-voting shall be declared by 6:00 P.M. on 1st August 2025. Now, I would like to request our Chief Financial Officer, Mr. Sonam Gupta, to give a vote of thanks. Thank you, Mr. A. Good afternoon, everyone. First of all, our sincere thanks to respective Chairman, Managing Director, and all other esteemed board members, shareholders of the company, the statutory auditors, cost auditors, and the secretarial auditors for sparing your valuable time for attending the AGM. We also thank our MD for giving a deep insight on the expansion plans, the company's initiatives for reducing carbon footprint, as well as the growth trajectory of the company. We would also like to express our gratitude to our Chairman, Padmashri Nalini Ranjan Mohanty, for his invaluable contribution over the years. He has helped us to navigate through the business cycles in creating value for the stakeholders. Thank you, sir. Welcome. I request all the eligible members to cast their vote through e-voting, which will remain open for 15 minutes after the conclusion of this meeting. Since there is no other business to transact, the meeting comes to an end. I would request all the dignitaries to log off now. Thank you. Thank you.