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[May 2008]
Full Year Results From IFGL Refractories
The Board of Directors of IFGL Refractories Ltd at their meeting held on 7 May 2008 approved the audited results, both on stand alone and consolidated basis, for the financial year ended 31 March 2008. IFGL, primarily engaged in the manufacture of specialised refractories and operating systems used by the producers of iron and steel, saw stand alone total revenues increase 13.64% to Rs 17,216 lacs and consolidated revenues rise 17.26% to Rs 37,980 lacs. Stand alone profit before tax (PBT)rose 3.64% to Rs 2,617 lacs and consolidated PBT rose 9.92% to Rs 4.089 lacs. Stand alone profit after tax (PAT) rose 2.93% to Rs 1,686 lacs and consolidated PAT rose 8.57% to Rs 2,849 lacs.
IFGL, in its continued pursuit of distributing maximum possible profits among shareholders, has recommended payment of a dividend at 20%, i.e. Rs 2 (two) per equity share for 2007-2008, which is 2.5% higher than the 17.5% paid for 2006-2007.
IFGL has operating facilities in India as well as in Brazil, China, the UK and the USA. During 2007-2008, exports (including indirect) exceeded Rs 100 crores for the first time. The company has been the recipient of CAPEXIL’s Special Export Award for Refractories for five consecutive years.
IFGL is directly linked to the steel industry and is dedicated to clean steel, which is also its slogan. Being focused on the steel industry has been advantageous to the company as the demand for steel is growing by nearly 13% and this is likely to be sustained. Consequently, the demand for products manufactured by IFGL will remain strong, said the company.
During 2007-2008, IFGL further integrated its facilities in Brazil, China, India, the UK and the USA, installed balancing equipment wherever necessary and took steps for optimal utilisation of capacities and resources available. Commercial production at facilities set up in Tianjin, China for the manufacture of dart refractories for slag control was also started and it is now operating satisfactorily.
Of late, the costs of inputs both for the steel industry and IFGL have increased and are likely to rise further. Because of this, steel production capacities are being relocated and/or or set up in countries like India and China where inputs like iron ore and coking coal are available at comparatively low cost. Furthermore, India is targeted to become a developed nation by 2020 and thus the Indian steel industry’s role in this will be critical.
With abundant iron ore resources and increased demand for steel both in India and abroad, the steel industry in India is poised for substantial growth. India is targeting steel capacity of 200 million tonnes by 2020. In order to take full advantage of this, IFGL has decided to ramp up operations in India and one of the steps being taken is to set up facilities for manufacture of continuous casting refractories at Kandla Special Economic Zone in Gujarat through a subsidiary, IFGL Exports Limited, at an estimated capital outlay of Rs 50 crores. For the purpose, long-term resources may be augmented. The project is to be completed by September 2009 and it will exclusively cater to the export market. IFGL is also looking at and evaluating other opportunities for both organic and inorganic growth.
www.ifglref.com
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