Company Overview

Impex Ferro Tech Limited, incorporated in 1995, is a publicly traded Indian company headquartered in Kolkata, West Bengal. The company is engaged in the manufacturing of ferro alloys (ferro manganese/silico manganese) and trading in iron and steel products. As part of the Impex Group of Companies, the organization was established with the primary intention of manufacturing Silico Manganese and Ferro Manganese. The company is promoted by Vimal Kumar Patni and Mr. Rohit Patni.

The company operates in the ferro alloys industry, which plays a crucial role in steel production. The robust global steel production growth strengthened upstream demand for ferro alloys, with India maintaining a 5-7% share of the global ferro alloys industry and ranking among the top 10 largest producers worldwide. In India, the majority of ferro alloy furnaces are strategically located in Orissa, Andhra Pradesh, West Bengal, Chhattisgarh, and Goa due to their proximity to mines.

Products and Manufacturing

Impex Ferro Tech manufactures ferro alloys, specifically Silico Manganese (SiMn) and Ferro Manganese (FeMn), through the Submerged Arc Furnace (SAF) route. The company's product portfolio includes silico manganese, high-carbon ferro manganese, and medium-carbon ferro manganese. These ferro alloys are intermediate products used for making special grade steel with specific properties and are essential in the production of various types of carbon and alloy steels.

The ferro alloy products serve multiple purposes in steel manufacturing, including deoxidation, desulphurization, and refining of steel. The use of ferro manganese and silico manganese in carbon steel production is primarily for refining and deoxidation processes. Beyond manufacturing, the company also trades in iron and steel products.

Manufacturing Infrastructure

The company operates a ferro alloy plant comprising five submerged arc furnaces with capacities of 3.6 MVA, 5 MVA, 7.5 MVA, 8.25 MVA, and 7.5 MVA, located in Burdwan, West Bengal. The company established its first two submerged arc furnaces in 1997-98, added a third furnace in 2002, a fourth in 2005, and commenced operations of the fifth submerged Electric Arc Furnace (EAF) of 7.5 MVA capacity in 2009. The company also has a 30-megawatt power plant, which was implemented as part of their captive power generation initiative.

Financial Performance and Market Position

As of recent data, Impex Ferro Tech has a market capitalization of ₹17.8 crore. On a consolidated basis, the company reported a loss of ₹20.46 crore on total income of ₹35.82 crore for the quarter ended March 2024. The company's net profit fell by 324.59% compared to the same period last year, reaching ₹-20.46 crore in Q4 FY2023-2024.

Key Financial Metrics:

- Q4 FY2023-2024 Performance: Total Income ₹35.82 crore, Net Loss ₹20.46 crore.

- Revenue (Recent Period): ₹27.5 crore

- Net Profit (Recent Period): ₹-29.8 crore

- Trailing 12-month Revenue: $3.32 million (as of March 31, 2024)

- Trailing 12-month Earnings per Share (EPS): -$0.04

The company has experienced challenging financial performance, with a poor sales growth of -22.7% over the past five years. The company currently maintains a low interest coverage ratio and faces contingent liabilities of ₹372 crore.

Shareholding Pattern

- Promoter Holding: 69.1% (As of March 2024, stable from June 2023).

- Pledged Promoter Holding: 100% of promoter holding is pledged, indicating potential financial stress.

Recognition and Certifications

The company has achieved notable recognition in the industry, including ISO 9001:2000 certification and the EEPCER (Engineering Export Promotion Council Eastern Region) top export performance award in May 2010. These certifications underscore the company's commitment to quality standards and export excellence in the ferro alloys sector.

Stock Market Information

Impex Ferro Tech trades on Indian stock exchanges under the ticker symbol 532614.

- 52-Week High: ₹4.53

- 52-Week Low: ₹1.83

- Total Employees: 70

The ferro alloys industry remains integral to India's steel manufacturing ecosystem, with companies like Impex Ferro Tech playing a vital role in supplying essential materials for steel production. Despite current financial challenges, the company's established manufacturing infrastructure and strategic location continue to position it within India's ferro alloys landscape.