IMFA Not Looking To Raise Debt For Expansions, Says Subhrakant Panda
IMFA is in the midst of a significant capacity expansion. The first phase involves a new 100,000-tonne-per-annum unit in Kalinganagar, Odisha.
Indian Metals & Ferro Alloys (IMFA), a leading ferrochrome producer in India, is not looking forward to raising any debt to fund its expansion plans. Managing Director Shubhrakant Panda said that IMFA’s strong balance sheet with zero long-term debt will allow it to fund future growth.
“The current expansion that we are doing, as well as future expansions that we have planned, we are not really looking to take on any debt. For tactical purposes, from a financial planning perspective, we might take on some debt, but we are very clear that we will focus on keeping the debt equity ratio as low as possible under no circumstances crossing 0.5,” he said during a conversation with NDTV Profit.
In fact, the company aims to keep the debt-equity ratio significantly below 0.5. “I doubt we will even get that far it'll be it'll be significantly below, given the health of the balance sheet, as well as the cash surpluses that we're generating, and especially with ferrochrome prices picking up, that will be a further boost to the bottom line,” he emphasised.
IMFA is in the midst of a significant capacity expansion. The first phase involves a new 100,000-tonne-per-annum unit in Kalinganagar, Odisha, with a capital outlay of Rs 850 crore to Rs 900 crore. Construction is proceeding on schedule, with the first of its two furnaces expected to be commissioned by June 2026.
“So that will add about 35% to 40% capacity by next year, which is a significant move. And that will obviously have an impact on both the top line, as well as the bottom line,” he said.
This will boost IMFA’s ferrochrome production capacity from 260,000 tonnes to approximately 360,000 tonnes annually.
Additionally, IMFA is increasing its chrome ore mining capacity from 6 lakh tonnes per annum to 9 lakh tonnes in the first phase, with plans to reach 12 lakh tonnes in the second phase. This enhanced mining output will support the expanded ferrochrome production.
Panda also revealed plans for a second phase of expansion, with an in-principle approval from the Odisha government for an additional 200,000-tonne capacity.
Shares of Indian Metals & Ferro Alloys closed 1.02% higher at Rs 1,174 apiece on the NSE, while the benchmark Nifty50 closed 0.45% lower at 25,056.90.
