core sector communique

IFGL Refractories Ltd Q2 with topline growth , excellent operating margins

– Associate Company set up a new state-of-art facility at Kandla, Gujarat

Kolkata, 5^th November, 2011 - The Board of Directors of IFGL Refractories Ltd (the Company) in their meeting held to-day has approved following unaudited financial results for three/six months ended on 30^th September, 2011.

	3 months ended on 30.09.2011 (Rs in lacs)	3 months ended on 30.09.2010 (Rs in lacs)	Variation (%)	6 months ended on 30.09.2011 (Rs in lacs)	6 months ended on 30.09.2010 (Rs in lacs)	Variation (%)
Consolidated
Total Income	16,047	11,304	41.96	28,623	21,623	32.37
Profit before Tax	1,668	572	191.61	3,098	1,194	159.46
Profit after Tax and Minority Interest	1,199	416	188.22	2,269	885	156.38
Stand-alone
Total Income	6,791	5,362	26.65	12,909	9,864	30.87
Profit before Tax	634	292	117.12	1,268	382	231.94
Profit after Tax	394	197	100	874	257	240.08

Compared to financial performance of first quarter ended on 30^th June, 2011, consolidated Turnover, Profit before Tax and Profit after Tax are higher by Rs 3,466 lacs (27.67%), Rs. 238 lacs (16.64%) and Rs 129 lacs (12.06%) respectively. On an annualized basis, aforesaid financial performance on consolidated basis is substantially better than that for previous year ended on 31^st March, 2011 inasmuch as Total Turnover, Profit before Tax and Profit after Tax are higher by Rs 10,134 lacs, Rs 2,927 lacs and Rs 2,111 lacs respectively. Earning per Share, on stand alone basis and consolidated for six months ended 30^th September, 2011, is Rs 2.40 and Rs 6.43 respectively, whereas for the previous year 2010-2011 it was Rs 1.99 and Rs 6.63 only.

Manufacturing facilities for Flow Control Refractories, Monolithics etc for steel industry and Filters for the foundry industry are operating satisfactorily. Increased focus is being placed on following Bio Ceramic Products manufactured as per the know-how developed by Central Glass & Ceramic Research Institute, Kolkata and Sree Chitra Tirunal Institute for Medical Sciences and Technology, Trivandrum, market acceptability whereof is gradually and steadily increasing.

a) BioGraft Synthetic Bone Grafts for treatment of infra bonny defects by Dental, Oral and Maxillofacial and Orthopaedic Surgeons

b) CeraEye Synthetic Hydroxyapatite Orbital Implant

c) CeraHip Alumina Ceramic Femoral Head

Going forward, the Company has plans to introduce several new Bio Ceramic Products including Calcium Phosphate Cement – Injectable / Putty for dental application, in the market.

According to Mr Pradeep Bajoria, Managing Director, “Against the backdrop of a challenging environment and volatility in currency markets, we have delivered one of our strongest quarters with topline growth and excellent operating margins. We will continue to grow, both organically and by way of acquisitions, and maintain focus on execution, operational efficiencies and building organizational capabilities to enhance shareholder value.”

Mr Osamu Matsuura, a Senior Executive, Sojitz Corporation, Japan has ceased to be a Director of the Company with immediate effect and in the vacancy so caused, their Mr Yoshihiro Konno has been appointed as a Director.

IFGL Exports Ltd, an Associate Company, has set up a new state-of-art facility at Kandla Special Economic Zone (near Gujarat) to manufacture Continuous Casting Refractories. Said facility has recently been inaugurated on 20^th October, 2011. With this, the Group now has three strategically located manufacturing facilities for CCR’s, one each located in Cincinnati, (Ohio-USA), Rourkela (India) and Kandla Special Economic Zone (India).

Kandla Special Economic Zone is the oldest Special Economic Zone of India and located on the outskirts of world famous Kandla Port on the western coast and because of this, delivery time for shipments to Middle East Countries, Europe etc will substantially reduce.

About IFGL Refractories:

IFGL Refractories is a leading manufacturer of specialized Refractories having manufacturing facilities, through its subsidiaries, in Brazil, China, Czech Republic, Germany, India, UK and USA. Krosaki Harima Corporation (a subsidiary of Nippon Steel Corporation, Japan) is the technology provider. Equity Shares are listed both on Mumbai and National Stock Exchanges of India.