Indian Metals Shares Surge 10% on Strong Q2 Earnings and Margin Expansion

Keywords: Indian Metals share price, Q2 profit, EBITDA growth, ferro alloys, financial performance, operating efficiency, Indian Metals & Ferro Alloys, IMFA stock, Subhrakant Panda, stainless steel demand, debt-free balance sheet

Indian Metals & Ferro Alloys Ltd. (IMFA), a key player in the ferro alloys sector, witnessed a nearly 10% surge in its stock price following the release of robust financial results for Q2 of FY25. The company’s consolidated Profit After Tax (PAT) rose sharply by 40% year-on-year to ₹125 crore, up from ₹89.2 crore in Q2 FY24. This strong growth in net profit reflects IMFA’s focused operational improvements, stable input costs, and strategic positioning within the industry.

Solid EBITDA Performance and Improved Margins

IMFA’s Earnings before Interest, Tax, Depreciation, and Amortisation (EBITDA) saw a year-on-year increase of 13.4%, reaching ₹171 crore for the quarter, compared to ₹150.3 crore in the previous year. Furthermore, the company reported a notable increase in its EBITDA margin, which improved to 24.6% from 21.7% a year ago. This uptick demonstrates the company’s continued focus on enhancing operational efficiency while maintaining cost control.

According to IMFA’s Managing Director, Subhrakant Panda, the margin improvements stem from the company’s increased output and focus on efficiency. He emphasized the benefits of stable input costs and firm selling prices, which have bolstered the company’s profitability.

Global Demand Trends and Market Position

On the international front, IMFA has noted a slight dip in global demand for stainless steel due to prevailing economic uncertainties. However, the recent stimulus measures in China and a positive shift in the Purchasing Managers’ Index (PMI) signal potential growth for the metals industry in the coming months. IMFA has strategically positioned itself to benefit from this anticipated upturn.

Domestic Market and Competitive Advantage

In the domestic market, ferro chrome prices have recently softened, challenging non-integrated producers. However, IMFA’s access to captive ore and its debt-free balance sheet provide it with a unique competitive edge. Panda remarked that these strengths position IMFA well for superior performance amidst fluctuating market conditions.

• At 11:40 am on Friday, IMFA’s shares traded at ₹788.5 on the BSE, reflecting an 8.98% increase. The promising quarterly results and optimistic outlook underscore IMFA’s resilience and growth potential within the ferro alloys sector.

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