Before going into the details of our performance, let me first lay out the macro landscape that has a bearing on our broad strategies and their implementation. India continues to remain in the vanguard of global economic growth with supportive fiscal and monetary policies. The Government of India’s continued focus on infrastructure development and indigenous entrepreneurship under the ‘Make in India’ initiative are translating into encouraging outcomes. It is pertinent to mention in this context that our country has significantly improved its ranking in the World Bank’s Ease of Doing Business Report 2019. There are challenges and downside risks, but the long-term growth story of our country continues to be optimistic.
Now, let me shed light on our performance during FY 2018-19, which was unfortunately affected by some unforeseen challenges. Our ferro chrome production was impacted as the largest furnace at Therubali, Odisha remained out of operation for around four months on account of a shell puncture as a result of an unplanned shutdown following an agitation by some outsiders. Moreover, our ‘mark to market’ provision on foreign currency borrowings affected our bottom line as the INR depreciated; however, taking advantage of favourable currency movement, we have now unwound most of the exposure. Finally, the award in the Bilateral Investment Protection Treaty arbitration with the
Government of Indonesia went against us, consequent to which we had to write off the investment and provide for additional expenses which dented our profitability.
Despite such adversity, our integrated business model and deep market insight enabled us to report a resilient performance.
We reported revenue of Rs, 1633.78 crores in FY 2018-19 as against Rs, 1769.26 crores in FY 2017-18 while EBITDA stood at Rs, 284.58 crores (previous year: Rs, 461.03 crores). We reported a PAT of Rs, 11.04 crores in FY 2018-19 (previous year: Rs, 186.62 crores) resulting in earnings per share of Rs, 4.09 (previous year: Rs, 69.18). Total ferro chrome production was 216,046 tonnes as compared to 234,443 tonnes the previous year with commensurate power generation of 914.60 million units (previous year: 946.05 million units) and chrome ore raising of 518,615 tonnes (previous year:
We are strengthening our core capabilities to produce significant value for the long term and, in this context, are evaluating acquisition of distressed assets as well as greenfield expansion. Meanwhile, we have restarted the 48 MVA furnace at Therubali after relining and shell replacement and attended to other areas for enhanced efficiency and output. As always, power generation and mining output will be synchronised to captive requirement with some outside procurement if necessary. We also enhanced our commitment to renewable energy with the commissioning of an additional 1.5 MW solar power project at Therubali taking the total installed capacity to 4.5 MW.
At IMFA, we up skill our employees through need-based functional and interpersonal training to equip our teams to deliver on our vision and strategies. We are also growing the scale and scope of our Quality Improvement Programmes (QlPs), making it an integral part of our organizational culture. These programmes demonstrate our focus on operational excellence and employee engagement. I am happy to share that we have been featured in Fortune India’s prestigious list of India’s largest midsize companies ‘The Next 500’ for 2018; at 20th overall and 2nd in the Metals & Mining sector, IMFA is the highest ranked Odisha-based company in the list of prominent businesses.
IMFA was built on the foundation of enduring values of integrity, pursuit of excellence, teamwork and social commitment.
These intangibles are the real catalysts that produce measurable outcomes for our Company on all fronts.
Going forward, we will continue to strengthen our corporate governance and act as a change agent for society. Our focus is to continue the good work of the Bansidhar & Ila Panda Foundation (BIPF) in the sphere of education, healthcare, livelihood, and water & sanitation. As a part of our broad sustainability agenda, we are also working proactively to reduce our carbon footprint and help protect the environment.
Global demand for stainless steel is expected to witness consistent growth with rising demand from end-use industries such as automotive, oil & gas, and construction among others. Consequently, while the ferro chrome industry faces some short-term challenges, the long-term outlook remains positive.
As a leading producer of ferro chrome in the country, we remain well placed to seize any opportunity that comes our way and benefit from the nation’s march from a developing economy to a developed one.
As we move ahead with renewed optimism and greater resilience, I thank our team members, customers, business partners, shareholders and the larger community of stakeholders for their support and faith in our vision.