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Nava Bharat Ventures – reports all-round record performance for Q4 & FY22!!

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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%YoYi) 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) 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 revenueii) 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 FY22Q4 FY21YoY%FY22FY21YoY%
Revenue #5,0243,88529.3%17,56410,67264.6%
EBITDA#$1,9211,12670.6%6,4022,869123.2%
EBITDA Margin %38.2%29.0%
36.4%26.9%
PBT1,87894399.2%57542364143.4%
PAT1,292622107.6%38191546147.0%

# 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 FY22Q4 FY21YoY%FY22FY21YoY%
Revenue#11,3937,96243.1%36,45427,97530.3%
EBITDA#$5,2563,67742.9%16,16613,18322.6%
EBITDA Margin %46.1%46.2%
44.3%47.2%
Adjusted EBITDA *5,0803,04366.9%17,37614,38220.8%
 Adj EBITDA %44.6%50.5%
47.7%51.4%
PAT3,5971,594125.6%5,7335,5074.1%

     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

ParticularsQ4 FY22Q4 FY21YoY%FY22FY21YoY%
Power generation (Mn kwh)59035068.8%1,7351,896(8.5%)
Average PLF (%)91.2%53.9%
66.0%72.1%
External Coal Sales1,16,9641,08,6337.7%5,01,9763,75,41233.7%
Total Revenue (USD Mn)845553%2452402%
EBITDA (USD Mn)513166%114134(15%)
EBITDA Margin61.2%56.1%
46.3%55.9%
Adjusted EBITDA*482685%131150(13%)
PAT (USD Mn)3310231%2249(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 MCLi) 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
PeriodBilledRealisedRealised %
July 2016 to March 2022 (USD Mn)1,26570155%
  • 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 DebtCash & bank balances
31.03.202231.03.2402131.0344.202231.03.2021
Standalone1,9281,7474,7971,741
Consolidated33,59735,5998,2536,436

Quantitative Table of Operational data (Sales Qty)


Q4 FY 22Q4 FY21YoYFY22FY21YoY
Ferro Alloys (MT) 




Silico Manganese24,63433,392(26.2%)1,04,66795,7119.4%
Ferro Chrome15,92114,8617.1%65,98157,10915.5%
Power (Mn units)





Merchant sales18511462.5%603176243.2%
Captive167175(4.6%)71364810.0%
NBEIL11111N.A43411N.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.

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