Strong performance: IFGL Group doubling capacity in two subsidiaries

Highest Profit after Tax of Rs. 640 Mn

10^th May, 2014, Kolkata – The Board of Directors of IFGL Refractories Limited (the Company) in their meeting held today has approved audited financial results both on standalone and consolidated basis for financial year 2013-14.

Consolidated Financial performance achieved in brief is as follows:

In the financial year ended 31^st March, 2014, Total Revenue is Rs.7,810Mn, grew by 16%, EBITDA is at Rs.1,130Mn, registered growthof 80%, Profit before Tax of Rs. 906 Mn, growth of 119% and Profit after Tax for the year is at Rs.640 Mn, growth of 127% compared to previous year ended 31^st March, 2013. EBITDA margin for FY14 is 14.5%, expanded by 519 bps. Consolidated Earnings per share is at Rs.18.25, more than double as against Rs7.91 in previous year.

Board has recommended payment of Dividend @ 17.5 % on Equity Shares of Rs 10/- each i.e. Rs1.75 per Equity Share, subject to necessary approvals. Dividend recommended is in accord with CompanyPolicy to distribute profits amongst the shareholders and is higher by 2.5 % i.e. Rs 0.25 per Equity Share, than that paid for previous year.

Company, on a standalone basis, posted revenue of Rs.3,289Mn in FY14, growthof6.6 % compared to previous year. EBITDA grew by 27.4% year-on-year to Rs.466 Mn and Profit after Tax for the year on a standalone basis, is at Rs.243 Mn, growth of 42.7% as against previous year.  Earnings per share is Rs. 6.79 compared to Rs. 4.69 of the previous year.

During financial year 2013-14, subsidiaries of the Company, particularly in UK and USA, performed strong. Total Income, Profit before Tax and Profit after Tax of overseas operations increased by Rs690Mn  (18.1%), Rs287Mn (133.5%) and Rs 244Mn (175.2%) respectively compared to that of the previous year.

Indian subsidiary, IFGL Exports Ltd, also performed satisfactorily inasmuch as Total Income increased  byRs 309Mn (338.7%). Profit before Tax is Rs 35Mncompared to loss of Rs 57Mnin previous year. Stabilizing the quality of ISOSTATIC Refractories in a new production facility is very crucial and time consuming and this has been achieved during the financial year.

On a consolidated basis, only about 20% of sales of the Company is from India and going forward, same is likely to increase  substantially with political  stability coming in and increased thrust  on infrastructure to give  required boost to otherwise slackening economy.

The aforesaid strong performance is a result of an all round good performance, including Subsidiary Companies. Rationalisation of Raw Material and major expenses, coupled with a more efficient management of working capital, made the Company more competitive and profitable. Despite following a conservative policy of booking future foreign exchange, the Company still benefited from Rupee depreciation,especially against Euro and Sterling Pound.

Subsidiaries in the USA (EIC) and the Indian subsidiary are taking steps to expand their respective production capacity. Efforts are being made towards improving operations of subsidiaries.

Bio Ceramic business performed better than previous year. Focus on this business and also few more new identified products will be stepped up during current financial year.

For improved investor relations, the Company has taken steps to improve the communication with investors and appointed Strategic Growth Advisors as an Investor Relation Advisor to the Company.

About  IFGL Refractories:

IFGL Refractories is a leading manufacturer of specialized Refractories having manufacturing facilities in China, 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 Bombay Stock Exchange Limited and National Stock Exchange of India Ltd. For more information about IFGL Refractories, please visit www.ifglref.com