Indian Metals and Ferro Alloys (533047) Q4 23/24 earnings summary

Executive summary

• FY24 delivered record ferrochrome production, chrome ore raising and captive power generation; the year was described as the second-best in terms of tax.

• FY24 consolidated revenue was ₹2,780.17 crore and PAT ₹372.39 crore; consolidated PBT rose to ₹516.12 crore from ₹323.87 crore.

• Performance was achieved despite a challenging external environment; the consolidated auditor issued an unmodified opinion while highlighting UCL going-concern uncertainty.

Financial highlights

• Q4 FY24 consolidated revenue was ₹700.56 crore, PBT ₹97.94 crore and PAT ₹63.57 crore; FY24 PAT was ₹372.39 crore versus ₹225.78 crore in FY23.

• FY24 standalone PAT was ₹390.48 crore versus ₹225.73 crore in FY23; consolidated operating cash flow reached ₹512.08 crore versus ₹150.94 crore.

• Q4 ferrochrome production was 65,000 tons and sales 68,000 tons; FY24 production was ~260,000 tons. Q4 realization was ~INR 102,000 per ton.

• Q4 other expenses included a INR 111 crore Utkal Coal investment impairment and INR 21 crore goodwill write-off; repair costs rose INR 12 crore and selling costs INR 6 crore.

• Q4 repair and maintenance and INR 10 crore of overheads were described as non-recurring or one-off; higher selling costs reflected increased ferrochrome sales.

Outlook and guidance

• FY25 ferrochrome production was projected at 250,000–260,000 tons; maintenance was expected to limit Q1 production to 62,000–63,000 tons.

• Q1 realization was expected at INR 105,000–106,000 per ton, up INR 3,000–4,000 per ton from Q4; Q1 EBITDA cost was expected near INR 60–65 per ton.

• Coke costs were expected broadly in line through Q2, with lower costs anticipated in Q3 as cheaper purchases flow through inventory.

• Expanded furnace capacity was expected to become operational by April 2027; the INR 1,500 crore capex program is spread over six to seven years, with the smelter component planned over 18 months.