Leading ferro chrome producer Indian Metals and Ferro Alloys has reported an over 55% decline in net profit to Rs 13.16 crore for the quarter ended December 31, 2011. The company had reported a net profit of Rs 29.41 crore for the corresponding quarter of 2010-11.
Net sales of the company, however, rose 28.82% to Rs 294.27 crore during the quarter under review from Rs 228.43 crore in the October-December quarter of FY11.
The company’s over 80% of net sales were contributed by exports of ferro chrome and due to rupee depreciation, its margins improved during the quarter. Ferro chrome is a raw material used in production of stainless steel.
During Q3, the company’s expenditure on raw materials increased by over 28% to Rs 159.04 crore from Rs 123.94 crore in the same period last year.
