The shares of this steel and iron manufacturing company jumped by 4 percent to an intraday high of Rs 644.50 apiece, from its previous close after the company opened a new plant at its Visakhapatnam facility with an investment of Rs 10 crores.
Share price movement:
With the market capitalization of IFGL Refractories Limited standing at Rs 2,285.97 crores, the shares climbed by 2.43 percent trading at Rs 634.30 levels at 12:25 pm on Thursday. The stock has delivered a return of 38 percent over the last year and a multi-bagger return of 353 percent for the last 5 years.
What happened:
The stock exchange filings of IFGL Refractories Limited mention that as a part of its Phase 3 expansion plan, the company has opened a new plant at its Visakhapatnam facility with an investment of Rs 10 crores to manufacture Magnesia Carbon, Alumina Magnesia Carbon, and Alumina SiC Carbon bricks.
The plant will initially have a capacity of 9,000 tonnes per year and is projected to generate revenue of Rs 100 crores. Within a year, the plant’s capacity will expand to 24,000 tonnes per year with an additional investment of Rs 3 crores.
Financials:
The sales generated by IFGL Refractories Limited grew by 18.2 percent from Rs 1,386 crores to Rs 1,639 crores from the period FY23 – FY24. Also for the same period, the net profits grew by 3.7 percent from Rs 79 crores to Rs 82 crores.
Ratios:
The ROE and ROCE of IFGL Refractories Limited stood at 7.6 percent and 9.4 percent respectively.
EBITDA and net debt:
The Consolidated EBITDA of IFGL Refractories Limited climbed by 28 percent from Rs 166.1 crores in FY23 to Rs 212.8 crores in FY24. The net debt of IFGL as of 31st March 2024 stood at Rs 39.1 crores.
Dividend approved:
IFGL Refractories Limited has approved a final dividend of Rs 7 per equity share for the financial year 2023-24 and will be paid on or after August 2024 according to the filings to the shareholders listed in the firm’s records.
Cash and cash equivalents:
IFGL limited’s cash and cash equivalents improved by 4.1 percent from Rs 194.3 crores in FY23 to Rs 202.1 crores in FY24.
Capex amount distribution:
The plant-wise capex amount distribution in FY23 and FY24 stood at for Odisha 58.5 crores, Kandla 50.0 crores, and Visakapatnam 69.0 crores.
The total expected capital expenditure (capex) for the period FY23 and FY24 stood at Rs 177.5 crores. To date, approximately 90 percent of the capex has been utilized in Odisha and Kandla, while about 75 percent has been spent in Visakhapatnam. The remaining capex is expected to be completed by Q1FY25.
Product portfolio:
IFGL Limited’s key products include tap hole sleeves and blocks, tap hole mass, pre-tap plugs, coil coating mass, casting flux, EBT filling mass, and burner blocks.
Shareholding Pattern:
As of June 2024, the promoters of the company held 72.44 percent of the stakes, and the FIIs and the DIIs held 0.18 percent and 13.77 percent respectively
About the Company:
Headquartered In Kolkata, IFGL Refractories Limited is a manufacturer of Specialized refractories and requisite operating systems for the Iron and Steel Industry. The Company caters to both domestic and international markets. The manufacturing facilities of the Company are located in Kandla Special Economic Zone (SEZ, Gujarat, and Kalunga Industrial Estate near Rourkela, Odisha.
Written By Zahal
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