Key highlights from the IMFA Q4 & FY25 Earnings Call and Q&A Session held on May 23, 2025:

*Management Commentary & Strategic Updates*
-Resilience despite market challenges: IMFA maintained profitability in Q4 FY25 despite weak ferrochrome prices and subdued global demand, by leveraging operational efficiency and an integrated business model.

-Chrome Ore Milestone: Raised 701,863 tonnes of chrome ore in FY25 — highest ever.

**Kalinganagar Plant*

-Capex revised to ₹900 crore (up from earlier ₹700 crore), accounting for inflation and best-in-class equipment.

-Commissioning of the first furnace targeted for June 2026, second by September 2026.

-Expected to add 96,000 TPA ferrochrome capacity.

-Renewable Energy Transition:

-Signed agreements for 110 MW hybrid RE (70 MW with JSW, 40 MW with Ampin).

-Tariffs: ₹3.84/unit (JSW), ₹3.75/unit (Ampin); 25-year contracts.

-RE to support Kalinganagar operations and reduce transmission costs via open access incentives.

** Financial Insights**

-Q4 FY25 EBITDA cost/ton: ₹76,980

-Net realization: ₹87,021/ton (↓ from ₹96,943 in Q3)

-Chrome Ore cost/ton: ₹7,500 (ex-royalty)

-Met Coke cost: ₹15,150/ton; expected to reduce further in Q1-Q2 FY26

-Power cost: ₹4.09/unit; RE will reduce landed cost over time

-Free Cash Flow (FY25): ₹430 crore (before dividend payout)

-Net Cash (Mar ’25): ₹535 crore (₹906 crore cash – ₹372 crore working capital borrowings)

**Operational Commentary: Ore Inventory Strategy:

-4+ months at plants, 2.5 months at mines.

-Building inventory ahead of Kalinganagar launch.

-Ore-to-Ferrochrome conversion ratio: 2.35–2.5 tonnes ore/tonne ferrochrome.

-FY26 Production Guidance: ~130,000 tonnes in H1.

-Ramp-up in H2 after Kalinganagar launch.

-FY28 Target: 360,000 TPA ferrochrome production.

**Market & Outlook:
-Global Ferrochrome Dynamics:

-South Africa’s Merafe & Glencore cutting production.

-China’s stimulus measures (interest rate cuts, lending boosts) likely to lift stainless steel demand.

-Stainless Steel Growth: Global output up 7% in CY2024; Indian market expected to expand significantly.

**Domestic Sales Outlook:

-Current mix: ~90–95% export, ~5–10% domestic.

-Shift toward domestic market focus anticipated, with similar realizations.

**Long-Term Contracts (LTCs):

-80% of sales on LTCs; priced quarterly or monthly, indexed to EBM (Europe) or Chinese indices.

**Capex & Projects Update:

#Kalinganagar Expansion (Phase 1)

Capex: ₹900 crore

Timeline: Commissioning between June–September 2026

Will add ~96,000 TPA ferrochrome capacity

#Ethanol Plant (120 KLD, Grain-Based)

Capex: ₹150 crore

Timeline: Commissioning in Q4 FY26

**Strategic diversification leveraging existing infrastructure

#Underground Mining Development

Capex: ₹1,000 crore (over 5 years)

FY26 Allocation: ₹800–900 crore planned

Aim: Strengthen captive chrome ore supply for future expansion

**Investor FAQs Addressed:

Lag in price realization: ~1.5–2 months from market trend to revenue books.

Renewable Power Share: Will be utilized across IMFA facilities to meet CBAM targets and power the new Kalinganagar plant.

Cost optimization: Expected further ₹1,000–2,000/ton improvement possible over 2–3 years via efficiencies.

Please click to view earnings call transcript
https://www.bseindia.com/xml-data/corpfiling/AttachHis/d4f635f1-3ef2-4515-a5f4-70c2e5f00ed5.pdf