Indian Metals and Ferro Alloys reported Q3FY21 numbers. Ferro chrome prices moved up in Q3. Q4FY21 is expected to look stronger as prices have sky rocketed in January. Subhrakant Panda, Managing Director at Indian Metals and Ferro Alloys discussed.

“Operationally Q3FY21 was one of the best quarters in terms of output. We produced a little more than 65,000 tonne of ferro chrome, which is slightly better than our normal runrate. The ongoing quarter is going to be substantially better. We expect even the first quarter of FY22 to be substantially better on account of the expected increase in benchmark prices, which will happen at that point in time,” he said.

In terms of production, he said, “We are on track to cross 2.50 lakh tonne of ferro chrome for the full year of FY21. Even on the quarterly price contracts we have captured some of the gain.”

On EBITDA numbers, he said, “For the last couple of quarters, we have an operational EBITDA of Rs 70-75 crore and we expect that to easily surpass the Rs 100 crore mark for the final quarter of the current fiscal. That would lead to an EBITDA of roughly about Rs 350 crore for the full year.”

“Our capacity utilisation is close to optimal at this point of time and in terms of debt, at the end of nine months our long-term debt was a little more than Rs 400 crore and in the current quarter we expect to pare that down by about at least Rs 25-30 crore. To be on the conservative side, I would say that we would end the year at about Rs 375 crore of long-term debt,” he mentioned.

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(Edited by : Aditi Gautam)