Upon the plea by the company, the government has initiated another anti-dumping investigation on the import of soft ferrites.
India’s Cosmo Ferrites, known for exporting and manufacturing ‘Soft Ferrite Core’ has released Q1 FY25 report, which revealed that sales revenue plummeted by 17.03 percent to Rs 22.37 crore in the quarter ended June 2024 as against Rs 26.96 crore during the previous quarter ended June 2023. The net loss of Cosmo Ferrites reported to Rs 1.69 crore in the quarter ended June 2024 as against net profit of Rs 0.36 crore during the previous quarter ended June 2023.
According to the company, dumping and import of soft ferrite cores at dumped prices in huge volume is causing material injury. The Indian companies have been facing challenges in regards to dumping soft ferrite cores from the neighboring countries. Dumping of major raw materials from China, Hong Kong and the adjacent countries has been a serious concern among numerous Indian companies. Similar to soft ferrite cores, the PCB manufacturers in India were also facing challenges, which is why the government has imposed a 30 percent duty on bare printed-circuit boards (PCBs).
Upon the plea by the company, the government has initiated another anti-dumping investigation on the import of soft ferrites. According to the company’s media release, the investigation is generally progressing as per the notified schedule. A favorable outcome will help improve operating margin and capacity utilization. The revenue dropped as compared to the previous quarter owing to its production quality of key raw materials. The impact of slump in sales volume is reflected in lower Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA). In the balance sheet, Cosmo Ferrites mentioned that the challenges of producing quality raw materials is resolved in Q2.
Commenting on Company’s performance Mr. Ambrish Jaipuria, Chairman, Cosmo Ferrites Ltd. “The company has successfully developed several new products tailored for automotive applications. Currently, it is progressing towards obtaining approvals in export markets for these innovations, a move anticipated to optimize capacity and enhance margins. The company is also in the process of reducing overheads and taking price corrections to improve the profitability.”
