Nava Limited · NSE:NAVA
Nava — Nava Bharat Ventures — Q3 FY20 Earnings Presentation
46 slides from Nava's earnings presentation, February 2020
Slide 1: Financial Performance Update - Q3 & 9M FY20
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Slide 2: Disclaimer
DISCLAIMER Certain statements in this document that are not historical facts are forward looking statements. Such forward-looking statements are subject to certain risks and uncertainties like government actions, local, political or economic developments, technological risks, and many other factors
Slide 3: Contents
04 Financial Performance Update – Q3 & 9M FY20 16 Company Overview 26 Business Segments
Slide 4: Financial Performance Update
Slide 5: Q3 & 9M FY20 – Consolidated Financial Performance
Q3 & 9M FY20 – Consolidated Financial Performance NET REVENUES (INR Mn) EBITDA & EBITDA MARGIN (INR Mn) PAT & PAT MARGIN (INR Mn) 41.0% 41.0% 14.6% 6,806 10.1% 5,433 2,930 991 -20.2 % -23.1 % 2,254 -44.6 % 549 Q2 FY20 Q3 FY20 Q2 FY20 Q3 FY20 Q2 FY20 Q3 FY20 NET REVENUES (INR Mn) EBITDA & EBITDA MARG
Slide 6: Q3 & 9M FY20 – Domestic Financial Performance
Q3 & 9M FY20 – Domestic Financial Performance NET REVENUES (INR Mn) EBITDA & EBITDA MARGIN (INR Mn) PAT & PAT MARGIN (INR Mn) 16.5% 6.4% 3,234 13.7% 4.3% 2,610 584 -19.3 % 207 -40.2 % -45.2 % 349 113 Q2 FY20 Q3 FY20 Q2 FY20 Q3 FY20 Q2 FY20 Q3 FY20 NET REVENUES (INR Mn) EBITDA & EBITDA MARGIN (INR Mn
Slide 7: Q3 & 9M FY20 - Consolidated Profit & Loss Statement
Q3 & 9M FY20 - Consolidated Profit & Loss Statement Particulars (INR Million) Q3 FY20 Q2 FY20 QoQ (%) 9M FY20 9M FY19 YoY (%) Total Revenue 5,433 6,806 -20.2% 20,243 23,298 -13.1% Cost of Goods Sold 1,451 2,109 -31.2% 6,220 7,966 -21.9% Gross Profit 3,982 4,697 -15.2% 14,023 15,332 -8.5% Gross Margi
Slide 8: Q3 & 9M FY20 - Domestic Profit & Loss Statement
Q3 & 9M FY20 - Domestic Profit & Loss Statement Particulars (INR Million) Q3 FY20 Q2 FY20 QoQ (%) 9M FY20 9M FY19 YoY (%) Total Revenue 2,610 3,234 -19.3% 10,111 11,862 -14.8% Cost of Goods Sold 1,480 2,056 -28.0% 6,075 7,285 -16.6% Gross Profit 1,130 1,178 -4.0% 4,035 4,577 -11.8% Gross Margin (%)
Slide 9: Q3 & 9M FY20 – Segmental Performance Highlights
Q3 & 9M FY20 – Segmental Performance Highlights Revenue Breakdown - By Segments (INR Mn) Segments Q3 FY20 Q2 FY20 QoQ (%) 9M FY20 9M FY19 YoY (%) India – Power Operations 1,225 1,712 -28.5% 5,318 6,001 -11.4% Ferro Alloys 1,759 2,036 -13.6% 6,091 7,081 -14.0% Sugar & Others 785 714 -29.0% 2,311 2,42
Slide 10: Q3 & 9M FY20 – Segmental Performance Highlights
Q3 & 9M FY20 – Segmental Performance Highlights EBITDA Breakdown (INR Mn) - By Segments Segments Q3 FY20 Q2 FY20 YoY (%) 9M FY20 9M FY19 YoY (%) % EBITDA Margin Q3 FY20 Q2 FY20 9M FY20 9M FY19 India – Power 297 213 39.6% 1,086 1,324 -18.0% India - Power 24.3% 12.4% 20.4% 22.1% Ferro Alloys 16 15 6.9
Slide 11: India Power Operations – Financial & Operating Metrics
India Power Operations – Financial & Operating Metrics Key Operating Metrics Q3 FY20 Q2 FY20 QoQ (%) 9M FY20 9M FY19 YoY (%) • Total power units sold declined by 29.2% QoQ in Q3 FY20; and by Total Power Units Sold (in Million Units) 264 373 -29.2% 1,120.8 1,241.1 -9.7% 9.7% YoY in 9M FY20 - o Mercha
Slide 12: Ferro Alloys Operations – Financial & Operating Metrics
Ferro Alloys Operations – Financial & Operating Metrics Key Operating Metrics Q3 FY20 Q2 FY20 QoQ (%) 9M FY20 9M FY19 YoY (%) Ferro Chrome Production (tons) 17,474 16,690 4.7% 51,086 44,896 13.8% Sales (tons) 17,474 16,690 4.7% 51,086 44,896 13.8% • Ferro Alloys Revenues declined by 13.6% QoQ in Q3
Slide 13: Sugar Operations – Financial & Operating Metrics
Sugar Operations – Financial & Operating Metrics Key Operating Metrics Q3 FY20 Q2 FY20 QoQ (%) 9M FY20 9M FY19 YoY (%) Sugar Volume Sold (tons) 8,753 7,052 24.1% 23,319 30,419 -23.3% Ethanol Sold (000 ltrs) 291 485 -40.0% 2,123 1,778 19.4% Key Financial Metrics (INR Millions) Q3 FY20 Q2 FY20 QoQ (%)
Slide 14: Zambia Power Operations – Financial & Operating Metrics
Zambia Power Operations – Financial & Operating Metrics Key Operating Metrics Q3 FY20 Q2 FY20 QoQ (%) 9M FY20 9M FY19 YoY (%) Power Units Sold (in Million Units) 324 462 -29.9% 1,257 1,321 -4.8% Average PLF (%) 55% 79% - 72% 75% - USD Millions INR Millions Key Financial Metrics Q3 FY20 Q2 FY20 QoQ (
Slide 15: Zambia Coal Mining – Financial & Operating Metrics
Zambia Coal Mining – Financial & Operating Metrics Key Operating Metrics Q3 FY20 Q2 FY20 QoQ (%) 9M FY20 9M FY19 YoY (%) Coal Sales to outsiders (In MTPA) 84,777 55,182 53.6% 207,611 184,554 12.5% USD Millions INR Millions Key Financial Metrics Q3 FY20 Q2 FY20 QoQ (%) 9M FY20 9M FY19 YoY (%) Q3 FY20
Slide 16: Company Overview
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Slide 17: Quick Snapshot
Quick Snapshot Leading Business Group Ferro Alloys ▪ Diversified organization with interests in power generation, O&M ▪ Leading manufacturer & exporter of Manganese and Chromium Alloys services, ferro alloys, coal mining, sugar and health care ▪ Manganese Alloys – 125,000 TPA ▪ Operates in different
Slide 18: Company Structure
Company Structure Ferro-Alloys Power Mining Sugar Healthcare Nava Bharat Energy India Ltd. Nava Bharat (Singapore) Pte. Ltd. Nava Bharat Ventures (Standalone) Nava Energy Pte. Ltd. (Step-down Subsidiary) (Wholly Owned Subsidiary) Telangana Manganese Alloys 125K TPA Telangana Singapore Maamba Collier
Slide 19: Diversified Geographic Presence
Diversified Geographic Presence Domestic Operations – Facilities Chart on India Map Global Operations – Facilities Chart on Global Map 19
Slide 20: Key Milestones in 40+ Years
Key Milestones in 40+ Years Commenced Global Acquired Forayed into Ferro Silicon Manganese & footprint - with Maamba Healthcare- Operations at Chrome Alloys establishment Collieries Ltd. enabled Operations at of 100% - Largest coal services in Paloncha, Kharagprasad, subsidiary in mine in South Indi
Slide 21: Key Management Team
Key Management Team Mr. D Ashok, Chairman Mr. P Trivikrama Prasad, MD • MBA from USA with 36 years experience in all facets of project • MBA from USA with 36 years experience in sugar industry, management, manufacturing and strategy. corporate planning and financial management. • Oversaw the growth
Slide 22: Analyzing Yearly Financials – Consolidated Operations
Analyzing Yearly Financials – Consolidated Operations Revenue EBITDA CAGR: 24.4% CAGR: 45.9% 14,197 31,035 23,478 8,624 16,125 13,809 4,567 3,214 FY16 FY17 FY18 FY19 FY16 FY17 FY18 FY19 Revenue (INR Mn) EBITDA (INR Mn) PAT Debt Equity Ratio CAGR: 15.5% 4,648 1.3 1.1 1.1 3,013 2,779 0.9 929 FY16 FY17
Slide 23: 60%+ of Total Revenue & EBITDA is Largely Non-cyclical
60%+ of Total Revenue & EBITDA is Largely Non-cyclical Zambia Indian Indian Zambia Indian Power Ferro Sugar & Coal Power (20-Year Alloys Others Mining PPA) Captive Merchant Sugar Others Ferro Chrome Ferro & Silico (Tata Conversion) Manganese Revenue (INR Mn) 5,607 2,638 1,960 7,736 1,440 1,850 14,78
Slide 24: Key Strengths: Recurring Revenue & Captive Resources
Key Strengths: Recurring Revenue & Captive Resources Business Strengths Benefits i) CPP 204 MW ii) Conversion Agreement with TATA i) Substantial cost savings Ferro Alloys: Steel for Ferro Chrome ii) Steady revenue from TATA steel Manganese Alloys & Ferro Chrome iii) Import tie up for bulk of the con
Slide 25: Value Creation - Growth & Value Unlocking Initiatives
Value Creation - Growth & Value Unlocking Initiatives Non-core Asset Monetisation: • Monetise 20 MW IPP Power plant in Andhra Pradesh • Large land bank in Hyderabad, and Dharmavaram (near Kakinada Port) in Andhra Pradesh Drive Higher Revenue Growth & Profitability: OPTIMISING • Cost Optimization: Fo
Slide 26: Discussing Our Business Segments
DISCUSSING OUR BUSINESS SEGMENTS Indian Ferro Indian Power Indian Sugar & Healthcare Zambia Power Zambia Mining Alloys Allied
Slide 27: Indian Power Business
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Slide 28: Indian Power Assets: Ideal Mix of CPP & IPP
Indian Power Assets: Ideal Mix of CPP & IPP Power plants with capacity of 443MW are spread across over the states of Telangana, Odisha & Andhra Pradesh Standalone Operations Wholly Owned Subsidiary - NBEIL Location Paloncha, Telangana Kharagprasad, Odisha Andhra Pradesh Paloncha, Telangana 114 MW 15
Slide 29: CPP provides stability to earnings in Indian Power Business
CPP provides stability to earnings in Indian Power Business PLF India Power Revenue (INR Mn) 87% 11,906 79% 11,371 68% 65% 67% 67% 59% 62% 5,449 8,588 8,245 5,064 54% 7,556 49% 2,677 2,638 2,605 6,457 6,307 5,673 5,607 4,952 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 Standalone * NBEIL Standa
Slide 30: Ferro Alloys Business
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Slide 31: Ferro Alloys - Moving away from Cyclicality
Ferro Alloys - Moving away from Cyclicality Ferro Alloys business has been one of the key drivers of growth Ferro Alloys in Brief… • Company’s Ferro Alloys capacities are supported by captive power giving them inherent advantage over competitors. Location Paloncha, Telangana Kharagprasad, Odisha • C
Slide 32: Ferro Alloys – Key Financial & Operating Metrics
Ferro Alloys – Key Financial & Operating Metrics Production (tons) & Capacity Utilization (%) 86% 91% 84% 72% 82% 53% 76% 105,032 54% 33% 60% 95,301 74,838 67,988 64,820 68,423 61,399 53,756 39,610 41,295 FY15 FY16 FY17 FY18 FY19 Mn Alloys Ferro Chrome Cap. Utlization (Mn) Cap. Utlization (FeCr) EBI
Slide 33: Sugar & Allied Business
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Slide 34: Sugar Operations – Overview
Sugar Operations – Overview NBVL Produces Sugar and Allied Products like Ethanol, Rectified Spirit and Extra Neutral Alcohol at Samalkot, Andhra Pradesh Sugar Distillery Ethanol Distillery Product: White Crystal Sugar Product: Rectified Spirit, Extra Neutral Product: Ethanol Capacity: 4,000 TCD Alco
Slide 35: Sugar Operations – Financial & Operating Metrics
Sugar Operations – Financial & Operating Metrics Sugar (000’ MT) Ethanol (Kilo Litres per annum) 47 3,794 42 43 3,580 3,540 3,388 39 38 39 38 3,359 3,253 3,178 37 37 3,002 34 2,867 2,590 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 Production Sales Production Sales Sugar Revenue (INR Mn) Ethano
Slide 36: Healthcare
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Slide 37: Healthcare Operations
Healthcare Operations We have forayed into healthcare-enabled services with initial focus in Singapore and Malaysia Key Highlights • Asset-light model - Services covering diagnosis, drug procurement to administration. • Acquired 65% stake in TIASH Pte Ltd. that provided entry to healthcare enabled s
Slide 38: Operations & Maintenance Services
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Slide 39: Operations & Maintenance Services
Operations & Maintenance Services NBVL’s Subsidiary “Nava Energy Pte Ltd” Provides Operations and Maintenance Related Services for MCL’s Power Plant in Zambia. This Generates a Stable Cash Flow Stream which is being repatriated to India • NBVL’s wholly-owned subsidiary “Nava Energy Pte Ltd” provides
Slide 40: Zambia Power
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Slide 41: Zambia Power – Only Thermal Power Plant in Zambia
Zambia Power – Only Thermal Power Plant in Zambia Maamba Collieries Limited (NBVL’s 65% Subsidiary) is the only Thermal Power Producer in Zambia Making it an Indispensable Asset Given Zambia’s Power Deficit Status and Excessive Dependence on Hydropower Mamba Collieries Limited – Zambia Power Plant O
Slide 42: Zambia Power – Financial & Operating Metrics
Zambia Power – Financial & Operating Metrics Key Operating Metrics FY18 FY19 YoY (%) Power Units Sold (in Million Units) 958.3 1731.8 81% Availability (%) 69.4% 87.0% 1,760 bps Average PLF (%) 62.1% 74.6% 1,250 bps Realisation per unit (USD / ton) 0.11 0.12 6% Currency USD (In Millions) INR (In Mill
Slide 43: Zambia Coal Mining
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Slide 44: Zambia Coal Mining – Effectively Complements Power Business
Zambia Coal Mining – Effectively Complements Power Business Maamba Collieries Limited (NBVL’s 65% Subsidiary) Operates the Largest Coal Mine in Zambia – Supplying High-Grade Coal to Industrial Customers like Lafarge, Dangote and others. Majority of the Billing is in USD, and we realize the amounts w
Slide 45: Zambia Coal Mining – Financial & Operating Metrics
Zambia Coal Mining – Financial & Operating Metrics Key Operating Metrics FY17 FY18 FY19 CAGR (%) Coal Sales to outsiders 276,486 326,612 233,754 -8.1% (Metric Tons Per Annum) Currency USD (In Millions) INR (In Millions) Key Financial Metrics FY17 FY18 FY19 CAGR (%) FY17 FY18 FY19 CAGR (%) Revenue fr
Slide 46: Contact details
VSN Raju Mandar Kapse / Chintan Mehta Vice President & Company Secretary Dickenson World Nava Bharat Ventures Ltd Tel : + 91 9867550004 / +91 9892183389 Tel : + 91 40 2340 3501 Email : nava.bharat@dickensonworld.com Email : vsnraju@nbv.in 46