On a day of record busting indices, Indian Metals & Ferro Alloys slips down into the red. The stock fell almost 3% to Rs.309.50. Its 52-week stands at Rs.288.45.
The market continues to show concern over the labour strike. Yesterday, the company stated that despite having a valid wage agreement, the Union at its Sukinda & Mahagirl Mines ceased work from 25th July’17.
They have raised certain demands and the company hopes to resolve the situation at the earliest.
Though the company has reassured that it has adequate stock of chrome ore at its plant sites and does not anticipate any disruption in production, the unease remains.
A month ago, the company had informed that a group of agitators had once again disrupted operations at its Therubali (Odisha) plant, preventing workers from entering the premises, leading to the shutdown of two furnaces.
The company posted a dismal set of numbers for Q1FY19 with a 71% (YoY) drop in net profit at Rs.29 crore. Its Ferro Chrome production during the quarter, dropped to 46,766 tonnes vs 51,798 tonnes. Power generation too fell to 220 million units vs 230 million units (YoY).