Indian Metals & Ferro Alloys Ltd (IMFA) is a leading, fully integrated producer of Ferro Chrome in India, a critical component primarily used in the production of stainless steel. Established in 1961, IMFA has emerged as India's largest fully integrated ferro chrome manufacturer and a leading producer of ferro chrome in the country, accounting for approximately 20% of domestic output and 25% of exports.
The company operates through three distinct segments: Ferro Alloys, Power, and Mining. IMFA has established two captive mines, strategically located in Sukinda and Mahagiri in Jajpur, Odisha. The company operates two manufacturing units at Therubali and Choudwar, also situated in Odisha, boasting a total production capacity of 284,000 tonnes per annum (MTPA) and a smelting capacity exceeding 190 megavolt-amperes (MVA).
IMFA benefits immensely from its fully integrated business model, which provides significant competitive advantages. The company possesses approximately 190 MVA installed furnace capacity, comprehensively supported by 204.55 MW of captive power facilities and extensive chrome ore mining tracts. This integrated approach is instrumental in maintaining cost efficiency and ensuring supply chain stability.
The market capitalization of Indian Metals and Ferro Alloys Ltd (IMFA) stood at ₹3,413.41 Crore as of June 3rd, 2025. The 52-week high for IMFA's stock was ₹998.80, and the 52-week low was ₹549.80. The company's stock performance typically reflects the cyclical nature of the commodities business and broader market conditions.
For the quarter ended March 2025 (Q4 FY25), IMFA demonstrated resilience amidst challenging market conditions. The company's consolidated net profit saw a year-on-year (YoY) increase of 33.4% to ₹47.4 crore, compared to ₹35.5 crore in the same period the previous year. However, revenue faced pressures, with revenue from operations declining by 19% YoY to ₹567.2 crore from ₹700.6 crore in Q4 FY24.
On an annual basis, the full-year net profit for FY25 stood at ₹379.3 crore, marking a 10.1% increase from ₹344.3 crore reported in the prior year. For the full year, IMFA posted a YoY revenue decline of 7.7%, reporting ₹2,564.6 crore in FY25 compared to ₹2,780.2 crore in FY24.
Key valuation metrics as of recent dates indicate:
- P/E (price-to-earnings) ratio: 9.01
- P/B (price-to-book) ratio: 1.60
- Q4 FY2024-25 Performance: Consolidated Net Profit of ₹47.4 crore, Revenue from Operations of ₹567.2 crore
- Full Year FY2024-25 Performance: Net Profit of ₹379.3 crore, Revenue of ₹2,564.6 crore
- Market Capitalization: ₹3,413.41 Crore (as of June 2025)
- Promoter Holding: (Please verify actual promoter holding for IMFA)
IMFA operates two manufacturing units at Therubali and Choudwar in Odisha. These facilities have a combined smelting capacity exceeding 190 megavolt-amperes (MVA) and a total production capacity of 284,000 MTPA. The company's fully integrated model is supported by a captive power generation capacity of over 204.55 megawatts (MW) and approximately 4.55 MW of solar power capacity. This integration ensures cost control and operational efficiency.
IMFA's ferro chrome output is predominantly exported to key international markets, including Korea, China, Japan, and Taiwan. This export-oriented strategy has been crucial in establishing a strong global presence, particularly within Asia, where there is substantial demand for ferro chrome from the stainless steel manufacturing sector.
The company's strategic location in Odisha, a state rich in mineral resources, provides seamless access to essential raw materials and underpins its prominent position in the ferro alloys industry. Indian Metals & Ferro Alloys primarily produces ferro alloys, including charge chrome (high carbon ferro chrome), with its installed furnace capacity of 190 MVA (284,000 MTPA) spread across its two plant sites.
IMFA maintains a robust financial standing, characterized by a debt-free status. The company has delivered a total shareholder return of 10% over the past year and is undertaking substantial capital expenditures focused on expanding production capacity and exploring diversification into ethanol. As IMFA embarks on ambitious projects, such as the Kalinganagar expansion, the company's primary focus remains on long-term value creation while adeptly navigating the inherent cyclicality of the industry.
Management has announced dividend distributions, with the Board of Directors recommending a final dividend of Rs 5 per equity share (i.e., 50%), subject to shareholder approval. This action underscores the company's commitment to returning value to its shareholders, even in the face of challenging market conditions.
In Q3 FY25, IMFA encountered significant challenges within the commodity markets, which led to profits falling short of expectations, despite a resilient operational framework. While the decline in ferrochrome prices and market oversupply, particularly from China, presented risks, the management remains optimistic about a market recovery. Proactive measures have been implemented to enhance operational efficiency.
IMFA's key competitive advantages include its fully integrated business model, direct access to captive raw materials, a strong debt-free balance sheet, and well-established export relationships. The company emphasizes that access to captive ore and a debt-free balance sheet provide confidence and are key drivers for registering superior performance.
Indian Metals & Ferro Alloys Ltd, incorporated in 1961, has its registered office at IMFA Building, Bhomikhal, P.O. Rasulgarh, Bhubaneswar, Odisha, 751010. The company's auditors are SCV & Co LLP and Walker Chandiok & Co LLP. In the main management, N. R. Mohanty serves as Chairman, and Smruti Ranjan Ray is the Company Secretary.
The company is well-positioned within the Indian metals and mining sector. Its shares are listed on both the NSE and BSE under the symbol IMFA. Indian Metals and Ferro Alloys Ltd (IMFA) belongs to the Materials sector and the Iron & Steel sub-sector. With its integrated operations, strong market position, and strategic expansion plans, IMFA continues to be a significant and influential player in India's ferro alloys industry.
