Shares in Indian Metals & Ferro Alloys slumped about 5 percent on Wednesday after its net profit plunged 71 percent in the first quarter.

Subhrakant Panda, managing director at Indian Metals and Ferro Alloys spoke to CNBC-TV18 about the earnings and outlook.

"The production was affected a little in the quarter gone by but the prices in fact from fourth quarter of last fiscal to first quarter of this fiscal have moved up by 20 percent to around Rs 86,000 per tonne, which helped boost EBITDA margins to 21 percent," said Panda.

"Besides production impact the other thing that dragged numbers in Q1 was Rs 35 crore mark to market provision on account of sharp depreciation of the rupee" he said.

Panda, however, is optimistic about the ongoing quarter.

"In Q2, production will improve because the furnace which was closed will restart back by end August, the prices are more or less steady and benefits of rupee depreciation will flow through for our exports," said Panda.

"The production for the year would be around Rs 220,000-225,000 tonnes. In Q1 it was just short of 47,000 tonnes. The current capacity for the company is 275000 tonnes," he said

With regards to debt, he said the long-term debt on books is short of Rs 650 crore and working capital debt is probably around Rs 150 crore.