Shares of Indian Metals and Ferro Alloys Limited (IMFA) surged by over 3% on Thursday following the announcement of strong Q2 FY25 financial results. As of 9:43 am, the stock was trading 3.46% higher at ₹748.55 on the BSE.
Financial Highlights for Q2 FY25:
- Net Profit: IMFA reported a 40% increase in net profit, reaching ₹125 crore compared to ₹89.2 crore in Q2 FY24, showcasing a robust improvement in profitability.
- Revenue: Revenue for the quarter remained flat at ₹692 crore, but operational efficiencies contributed significantly to the company’s performance.
- EBITDA: EBITDA rose by 13.4% year-over-year, amounting to ₹171 crore, up from ₹150.3 crore in the same period last year.
- EBITDA Margin: The EBITDA margin improved to 24.6%, compared to 21.7% in Q2 FY24, reflecting better operational efficiency.
Key Insights
Managing Director Subhrakant Panda attributed the growth to increased output, a focus on operational efficiency, and stable input and selling prices. He emphasized that the company is well-positioned to manage current market conditions with a strong balance sheet and improved margins.
On the global front, demand for stainless steel has shown a slight decrease due to economic uncertainties. However, recent stimulus measures in China and a rise in PMI offer a positive outlook for the sector.
The market responded positively to IMFA’s strong performance and improved profitability, driving the stock higher in early trading.
