IFGL Refractori.

IFGL Refractories reported a mixed performance for FY25. On a consolidated basis, Total Income grew modestly by 1% to INR 1,670 crores, with EBITDA margins at 8.7%. However, standalone performance was strong, with Total Income growing 11% YoY to INR 1,014 crores and EBITDA margins at 13.8%. The company has strategically shifted its focus towards the Indian domestic market, which now accounts for over 70% of standalone revenue, a significant change from its historically export-oriented business.

The domestic standalone business demonstrated robust growth, increasing 20% for the full year to INR 721 crores and 27% in Q4 FY25. This segment now contributes 72% to the standalone revenue, up from 67% in FY24. Key drivers for this growth include the ramp-up of magnesia carbon brick production at Vishakhapatnam, entry into new non-ferrous product lines like alumina monolithic and bricks, and the acquisition of new customers, expanding the total number of sites served from 9-10 to 17.

International markets, particularly Europe, faced significant headwinds in FY25, leading to a 6% decline in export business to INR 277 crores. Germany's operations were most impacted by weak demand in the foundry segment. However, the US operations are showing early signs of recovery, and the UK's Sheffield Refractories demonstrated resilience. The company is undertaking internal transformations in its Monocon operations, with a focus on new product development and market penetration, expecting a gradual turnaround in performance over the next few quarters.

IFGL Refractories is actively diversifying its product portfolio and market reach. The company entered the non-ferrous refractory segment, contributing INR 8-10 crores in FY25, and is exploring opportunities in cement, glass, coke, and other non-ferrous applications. A major milestone was the formation of a joint venture in December with an estimated project cost of INR 300 crores, aimed at rapidly scaling in high-potential sectors. Land has been acquired in Bhachau, Gujarat, for this expansion.

The company has significant capex plans for FY26, with an estimated cash outflow of INR 100-150 crores. This includes INR 55 crores for regular capex to enhance quality and productivity in existing plants, and INR 40-50 crores for the greenfield Khurdha project in Odisha, which is expected to be commissioned by Q4 FY28. The joint venture project is also underway, with commissioning targeted for H2 FY28. These investments are aimed at strengthening manufacturing footprint and expanding into new segments.

The Board recommended a dividend of INR 7 per equity share for FY25, representing a 70% payout, demonstrating a commitment to shareholder value. Additionally, a 1:1 bonus issue was approved, subject to regulatory approvals. The company maintains a strong balance sheet with consolidated debt at INR 32.99 crores and cash and cash equivalents at INR 169.35 crores as of March 2025, indicating a net cash position.