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Nava Bharat Ventures - reports all-round record performance for Q4 & FY22
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Registers robust growth of 143% YoY in Standalone profit before tax, the highest since inception

Declares dividend of 300% being Rs. 6.00 per equity share, reserving Rs. 87.06 crore for distribution, the highest since inception

HYDERABAD, India, May 16, 2022 /PRNewswire/ -- Nava Bharat Ventures Limited (NBVL), with diversified businesses in metals, energy, mining, healthcare and commercial agriculture, announced its financial results for the fourth quarter and year ending 31st March 2022.

The Company reported robust growth in its standalone operations during FY22, backed by solid traction in manganese alloy business in both export and domestic markets. Ferrochrome conversion continued its stable performance and provided stability in the overall earnings. The power division has witnessed a remarkable improvement, backed by the resumption of its two IPPs, Odisha (60MW) and NBEIL (150MW).

The Company has won the legal case concerning its urban land bank in eastern Hyderabad, further paving the way for the monetisation of this asset.

Financial Performance – Standalone Operations FY22

  • Optimum production and higher realisations for manganese alloys, coupled with robust power operations, especially after restarting of Odisha 60MW IPP enacted the strong standalone performance for FY22. The profit before tax grew by 143% YoY for FY22.
    • Ferro Alloys Revenue grew by 50%YoY

      i) This growth was led by both volume and realisation improvements. The Company's strategic split between export sales and domestic sales fetched better average realisations for its manganese alloys division in FY22. Yearly contract for manganese ore and advance procurement helped the Company obtain better margins.

      ii) Ferro Chrome conversion operations demonstrated a strong recovery on the volumes front. Conversion volumes were 16% higher YoY.

    • The power division reported 62% YoY in Revenue
      i) 60MW IPP of its 150MW in Odisha has been operational since June 2021, contributing significantly to the standalone power business. Competitive marginal cost in Odisha helped the Company improve upon merchant power sales on an opportunistic basis. On the QoQ front as well, higher generation helped in elevating overall standalone power revenue

      ii) Captive Consumption of power units (114MW) was higher by 6% YoY; Merchant sale quantities were higher by 42% YoY reflecting the sector trend in FY 22. Along with higher volumes, better price realisation aided the revenue growth

  • The Company reported a 123% increase in EBITDA YoY due to better efficiency in operations. EBITDA margins for Q4YF22 stood at 38.2% versus 29.0% in Q4FY21. For FY22, margins stood at 36.4% versus 26.9% in FY21. The Ferro Alloys division predominantly led such an increase.

Q4 FY22 Financial Performance – Standalone

Particulars
(in INR Mn)

Q4 FY22

Q4 FY21

YoY%

FY22

FY21

YoY%

Revenue #

5,024

3,885

29.3%

17,564

10,672

64.6%

EBITDA#$

1,921

1,126

70.6%

6,402

2,869

123.2%

EBITDA Margin %

38.2%

29.0%


36.4%

26.9%


PBT

1,878

943

99.2%

5754

2364

143.4%

PAT

1,292

622

107.6%

3819

1546

147.0%

# Revenue and EBITDA exclude discontinued operations.
$EBITDA is before exceptional items.  

  Financial Performance – Consolidated Operations – Q4 FY22

            Q4 FY22 Financial Performance – Consolidated

Particulars
(in INR Mn)

Q4 FY22

Q4 FY21

YoY%

FY22

FY21

YoY%

Revenue#

11,393

7,962

43.1%

36,454

27,975

30.3%

EBITDA#$

5,256

3,677

42.9%

16,166

13,183

22.6%

EBITDA Margin %

46.1%

46.2%


44.3%

47.2%


Adjusted EBITDA *

5,080

3,043

66.9%

17,376

14,382

20.8%

 Adj EBITDA %

44.6%

50.5%


47.7%

51.4%


PAT

3,597

1,594

125.6%

5,733

5,507

4.1%

     Exchange rate USD= INR 75.23 as on March 2022;
     # Revenue and EBITDA exclude discontinued operations
     $EBITDA is before exceptional items.
     *Adjusted for Forex and MTM (loss)/gain on account of Interest rate swaps (IRS), Provision for expected credit loss, and interest income of outstanding receivables –

  • Consolidated Revenue reported an increase of 30% YoY for FY22, backed by solid standalone operations performance, NBEIL's 150 MW power plant operation and robust coal operations in Zambia.

    Power Operations (NBEIL):
    FY22 witnessed good demand for power across the country, with occasional peaks in IEX market especially Q4 witnessing record power demand. The Company operated its 150MW IPP at an average PLF of 38% in FY22 versus being largely un operational in FY21.

  • International Operations were stable, with merchant coal sales exhibiting continuing strength.
    • Merchant Coal Sales in Zambia: For FY22, merchant coal sales have increased by 34% YoY. Revenue from merchant coal has been aided by both volume and realisation growth.
    • Power Operations (Zambia): The Zambian power plant operations attained normalcy, post major overhaul of both the Units. The Company's PLF for Q4FY22 stood at 91.2% versus 73.1% in Q3FY22 and 53.9% in Q4FY21.

MCL – Operational and Financial Performance

Particulars

Q4 FY22

Q4 FY21

YoY%

FY22

FY21

YoY%

Power generation (Mn kwh)

590

350

68.8%

1,735

1,896

(8.5%)

Average PLF (%)

91.2%

53.9%


66.0%

72.1%


External Coal Sales

1,16,964

1,08,633

7.7%

5,01,976

3,75,412

33.7%

Total Revenue (USD Mn)

84

55

53%

245

240

2%

EBITDA (USD Mn)

51

31

66%

114

134

(15%)

EBITDA Margin

61.2%

56.1%


46.3%

55.9%


Adjusted EBITDA*

48

26

85%

131

150

(13%)

PAT (USD Mn)

33

10

231%

22

49

(55%)

*Adjusted for Forex and MTM (loss)/gain on account of Interest rate swaps (IRS), Provision for expected credit loss and interest income of outstanding receivables.

  • Provision for expected credit loss of USD 17.7 Mn continued to impact the reported EBIDTA, while the impact on account of forex adjustment and MTM gain was USD 14.2 Mn for the quarter.

    Update on MCL

    i) Arbitration Oder: The Arbitration Tribunal had directed ZESCO to pay the partial award of US$ 250 Mn. MCL considers this as a positive development and is pursuing this matter with ZESCO.

    ii) Debt Restructuring for MCL: MCL has total outstanding Debt of USD 412.8 Mn as of 31st March 2022. This debt is at MCL level only and has no recourse to the Shareholders/ NBVL. MCL continues to honour the interest commitments from its ongoing operations. In addition, MCL continues to engage the lenders to restructure Debt.

  • Status of Receivables from ZESCO

Period

Billed

Realised

Realised %

July 2016 to March 2022 (USD Mn)

1,265

701

55%

  • Cash and debt position as on 31st March, 2022 (INR Mn): Most of the Debt on the consolidated front pertains to Zambian Operations, which does not have any recourse to the Company or its subsidiaries.

Particulars (INR Mn)

Overall Debt

Cash & bank balances

31.03.2022

31.03.24021

31.0344.2022

31.03.2021

Standalone

1,928

1,747

4,797

1,741

Consolidated

33,597

35,599

8,253

6,436

Quantitative Table of Operational data (Sales Qty)


Q4 FY 22

Q4 FY21

YoY

FY22

FY21

YoY

Ferro Alloys (MT)  






Silico Manganese

24,634

33,392

(26.2%)

1,04,667

95,711

9.4%

Ferro Chrome

15,921

14,861

7.1%

65,981

57,109

15.5%

Power (Mn units)







Merchant sales

185

114

62.5%

603

176

243.2%

Captive

167

175

(4.6%)

713

648

10.0%

NBEIL

111

11

N.A

434

11

N.A

Mr. Ashwin Devineni, the CEO of the Company, commented on the results, saying, "It is particularly gratifying to be celebrating the Golden Jubilee when  the future for our business looks so  promising. Our FY22 performance is a testimony of our 50 years of continued efforts. The Company's Standalone operations have been the pillars of growth and sustainability. The Company's Standalone operations have been performing well with an all-around improvement. Company Ferro Alloys and Power divisions reported a strong performance despite a challenging macro environment in terms of geopolitical concerns, raw material inflation etc. On the International operations front, Zambian power operations remained stable with continued improvement in merchant coal sales. Management foresees a robust demand for energy in Southern Africa and plans on taking strategic decisions to capitalise on the opportunity. We are also happy to share that our monetisation plans of idle assets are progressing well especially concerning the urban land parcel in eastern Hyderabad. The legal hurdle regarding the land is behind us, the Company is exploring the best possible options to maximise the returns on it. The Company has declared a dividend of INR 6.00 per share, i.e. 300% for FY22, and further continues to explore more opportunities to enhance shareholder value further."

About Nava Bharat Ventures Limited:  

Nava Bharat Ventures Limited is a diversified organisation with business interests in metals, energy, mining, healthcare and commercial agriculture. Nava Bharat is one of the leading Ferroalloy producers in India, with about 200,000 MT capacities. The Group has a total installed power generation capacity of 434MW in Telangana, Andhra Pradesh and Odisha in India. Nava Bharat owns and operates an integrated mine to mouth 300 MW thermal power plant in Zambia, held through its step-down subsidiary Maamba Collieries Limited. For more information about the Company and its businesses, please visit us at www.nbventures.com.

Safe Harbour: This document may contain forward-looking statements about the Company & its subsidiaries, which are based on the beliefs, opinions and expectations of the Company's management as of the date of this press release and the Company doesn't assume any obligation to update its forward-looking statements if those beliefs, opinions, expectations, or other circumstances should change. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. Consequently, readers should not place any undue reliance on such forward-looking statements.

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