Balasore Alloys Ltd (BAL), a major player in the international Ferro Chrome market, has notched up an impressive growth of 318.34% in its net profit at Rs. 2253.28 lacs for 1st Quarter ended 30th June, 2008, as compared with Rs.538.62 lacs recorded during the corresponding Quarter ended 30th June, 2007.

Turnover for the 1st Quarter ended 30th June, 2008 increased by 95.88% to Rs. 18680.51 lacs as against Rs. 9536.53 lacs during the corresponding Quarter ended 30th June, 2007. Export Turnover for the 1st Quarter ended 30th June, 2008 increased by 114.10% to Rs. 15632.25 lacs as against Rs. 7301.21 lacs during the corresponding Quarter of previous financial year. PBT for the 1st Quarter ended 30th June, 2008 registered a healthy growth of 278.61% at Rs. 3455.73 lacs as against Rs. 912.74 lacs registered in the corresponding Quarter of previous financial year. EPS jumped by 288.89% at Rs.3.50 per share for the 1st Quarter ended 30th June, 2008 as compared to Re. 0.90 per share for the corresponding Quarter of the previous financial year. (Face value of share = Rs. 5/-).

The Company has been able to sustain the momentum of its accelerated growth chiefly on account of judicious product mix, improved capacity utilization, better realizations and improved cost efficiencies, despite continuous rising input costs.

"The International Stainless Steel Forum (ISSF) estimates that stainless steel is one of the fastest growing basic materials with a growth in consumption of 9% in 2008 followed by further 11% in 2009. In China, FeCr consumption growth is estimated to be around 20% P.A. For the next two year. International Ferro Chrome prices are increasing almost vertically from one quarter to next quarter due to extremely buoyant demand from China, continuous increase of prices of Chrome Ore & more production of Ferritic grade Stainless Steel.

Considering the strong growth of Stainless Steel in International market and especially China, International Ferro Chrome Market is expected to remain bullish for next 3-4 years as most of the South Africa’s FeCr expansion project are expected to be on hold due to their Power crisis. It is reported that power crisis in South Africa will last until 2012; hence sentiment is expected to remain bullish for Ferro Chrome till such time.

Balasore Alloys Limited has increased export volumes and is presently exporting more than 80% of the production. The company is presently serving almost 26 countries across the globe - mainly to quality conscious Japan, Korea and European Countries. Export volume of the Company has increased more than 11 times during last five years and share in global market has also increased by 50% during the last 2-3 years."

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