Nava Limited · NSE:NAVA
Nava — Nava Bharat Ventures — Q3 FY21 Earnings Presentation
42 slides from Nava's earnings presentation, February 2021
Slide 1: February 2021
February 2021 1
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: Agenda
04 Financial Performance Update – Q3 & 9M FY21 15 Company Overview 26 Business Segments
Slide 4: Q3 & 9M FY21
Q3 & 9M FY21
Slide 5: Q3 & 9M FY21 – Consolidated Financial Performance
Q3 & 9M FY21 – Consolidated Financial Performance NET REVENUES (INR Mn) # ADJUSTED EBITDA & EBITDA MARGIN (INR Mn) # PAT & PAT MARGIN (INR Mn) 58.8% 49.2% 24.5% 6,601 3,880 5,099 11.8% 2,507 1,618 29.5 % 43.3% 161.4 % 603 Q3 FY20 Q3 FY21 Q3 FY20 Q3 FY21 Q3 FY20 Q3 FY21 NET REVENUES (INR Mn) # ADJUST
Slide 6: Q3 & 9M FY21 – Domestic Financial Performance
Q3 & 9M FY21 – Domestic Financial Performance NET REVENUES (INR Mn) # ADJUSTED EBITDA & EBITDA MARGIN (INR Mn) # PAT & PAT MARGIN (INR Mn) 22.9% 9.5% 3,625 13.9% 2,599 594 503 -28 % 18.2 % 247 823 % 0.7% 27 Q3 FY20 Q3 FY21 Q3 FY20 Q3 FY21 Q3 FY20 Q3 FY21 NET REVENUES (INR Mn) # ADJUSTED EBITDA & EBI
Slide 7: Q3 & 9M FY21 - Consolidated Profit & Loss Statement
Q3 & 9M FY21 - Consolidated Profit & Loss Statement Particulars (INR Million) # Q3 FY21 Q3 FY20 YoY (%) 9M FY21 9M FY20 YoY (%) Total Revenue 6,601 5,099 29.5% 18,598.4 19,496.2 -4.6% Cost of Goods Sold 1,300 1,185 9.7% 3,305 5,458 -39.5% Gross Profit 5,301 3,914 35.4% 15,293 14,038 8.9% Gross Margi
Slide 8: Q3 & 9M FY21 - Domestic Profit & Loss Statement
Q3 & 9M FY21 - Domestic Profit & Loss Statement Particulars (INR Million) # Q3 FY21 Q3 FY20 YoY (%) 9M FY21 9M FY20 YoY (%) Total Revenue 2,599 3,625 -28% 6,784 9,532 -29% Cost of Goods Sold 1,335 2,175 -39% 3,303 5,314 -38% Gross Profit 1,264 1,450 -13% 3,481 4,218 -17% Gross Margin (%) 49% 40% 22%
Slide 9: Q3 & 9M FY21 – Segmental Performance Highlights
Q3 & 9M FY21 – Segmental Performance Highlights Revenue Breakdown - By Segments (INR Mn) Segments Q3 FY21 Q3 FY20 YoY (%) 9M FY21 9M FY20 YoY (%) India – Power Operations 996 1,376 (27.6%) 2,725 5,511 (50.6%) Ferro Alloys 2,146 1,759 22.0% 5,471 6,091 (10.2%) Zambia – Power Operations 3,975 2,617 51
Slide 10: Q3 & 9M FY21 – Segmental Performance Highlights
Q3 & 9M FY21 – Segmental Performance Highlights EBITDA Breakdown (INR Mn) - By Segments Segments Q3 FY21 Q3 FY20 YoY (%) 9M FY21 9M FY20 YoY (%) % EBITDA Margin Q3 FY21 Q3 FY20 9M FY21 9M FY20 India – Power 226 297 (23.9%) 465 1,086 (57.2%) India - Power 22.7% 21.6% 17.1% 19.7% Ferro Alloys 133 16 7
Slide 11: India Power Operations – Financial & Operating Metrics
India Power Operations – Financial & Operating Metrics Key Operating Metrics Q3 FY21 Q3 FY20 YoY (%) 9M FY21 9M FY20 YoY (%) Total Power Units Sold (in Million Units) 205 262 (21.6%) 534 1,114 (52.0%) Merchant Sales 28 85 (66.7%) 61 588 (89.6%) ▪ Domestic power division revenues declined in Q3 FY21
Slide 12: Ferro Alloys Operations – Financial & Operating Metrics
Ferro Alloys Operations – Financial & Operating Metrics Key Operating Metrics Q3 FY21 Q3 FY20 YoY (%) 9M FY21 9M FY20 YoY (%) Ferro & Silico Manganese Production (tons) 27,449 24,887 10.3% 69,469 74,970 (7.3%) Sales (tons) 25,951 18,400 41.0% 62,319 63,874 (2.4%) Ferro Chrome Production (tons) 14,25
Slide 13: Zambia Power Operations – Financial & Operating Metrics
Zambia Power Operations – Financial & Operating Metrics Key Operating Metrics Q3 FY21 Q3 FY20 YoY (%) 9M FY21 9M FY20 YoY (%) Power Units Sold (in Million Units) 388 324 19.8% 1,371 1,257 9.1% Average PLF (%) 66.0% 55.4% 1066 bps 78.1% 71.7% 636 bps USD Millions INR Millions Key Financial Metrics Q3
Slide 14: Zambia Coal Mining – Financial & Operating Metrics
Zambia Coal Mining – Financial & Operating Metrics Key Operating Metrics Q3 FY21 Q3 FY20 YoY (%) 9M FY21 9M FY20 YoY (%) Coal Sales to outsiders (In MTPA) 1,05,682 84,776 24.7% 2,66,778 2,07,611 28.5% USD Millions INR Millions Key Financial Metrics Q3 FY21 Q3 FY20 YoY (%) 9M FY21 9M FY20 YoY (%) Q3
Slide 15: Company Overview
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Slide 16: Quick Snapshot
Quick Snapshot Leading Business Group ▪ Diversified organization with interests in power generation, O&M Ferro Alloys services, ferro alloys, coal mining, sugar and health care ▪ Leading manufacturer & exporter of Manganese and Chromium Alloys ▪ Operates in different geographies spanning across Indi
Slide 17: Company Structure
Company Structure Ferro-Alloys Power Mining 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 Collieries Lt
Slide 18: Diversified Geographic Presence
Diversified Geographic Presence Domestic Operations – Facilities Chart on India Map Global Operations – Facilities Chart on Global Map Note: Sugar & Allied Business including a sugar Processing Plant of 4,000 TCD, and Power Plant of 9 MW in Andhra Pradesh, has been classified as Discontinued Operati
Slide 19: 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 20: 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 21: Analyzing Yearly Financials – Consolidated Operations
Analyzing Yearly Financials – Consolidated Operations Revenue EBITDA CAGR: 26% CAGR: 55% 13,934 12,003 29,460 27,587 23,478 8,624 13,867 3,214 FY17 FY18 FY19 FY20 FY17 FY18 FY19 FY20 Revenue (INR Mn) EBITDA (INR Mn) PAT Debt Equity Ratio CAGR: 79% 5,308 1.3 1.1 3,390 0.9 0.8 2,779 929 FY17 FY18 FY19
Slide 22: 55%+ of Total Revenue & EBITDA is Largely Non-cyclical
55%+ of Total Revenue & EBITDA is Largely Non-cyclical Zambia Ferro Zambia Power Others Power Alloys Coal (India) (India) (20-Year (India) Mining PPA) Captive Merchant Ferro Chrome Ferro & Silico (Tata Conversion) Manganese * Revenue (INR Mn) 3,767 3,633 2,117 6,714 1,996 14,313 2,911 Contribution %
Slide 23: 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 conversion Manganese Alloys & Ferro Chrome iii) Import tie up for bulk
Slide 24: 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 • Sugar plant & project land, Samalkot, Andhra Pradesh Drive Higher Revenue Gro
Slide 25: Discussing Our Business Segments
DISCUSSING OUR BUSINESS SEGMENTS Indian Ferro Indian Power Indian Sugar & Healthcare Zambia Power Zambia Mining Indian Ferro Alloys Indian Power Allied Healthcare Zambia Power Zambia Mining Alloys
Slide 26: Power Business India
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Slide 27: 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 28: CPP provides stability to earnings in Indian Power Business
CPP provides stability to earnings in Indian Power Business PLF India Power Revenue (INR Mn) 79% 11,906 11,371 65% 67% 67% 62% 64% 59% 54% 5,449 8,336 49% 5,064 7,556 46% 7,528 2,694 2,605 2,482 6,457 6,307 5,642 4,952 5,046 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 Standalone * NBEIL Standa
Slide 29: Nava Bharat
NAVA BHARAT
Slide 30: 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 31: Ferro Alloys – Key Financial & Operating Metrics
Ferro Alloys – Key Financial & Operating Metrics Production (tons) & Capacity Utilization (%) 91% 92% 100% 86% 84% 72% 80% 82% 81% 76% 60% 60% 105,032 100,803 33% 95,301 40% 74,838 68,423 68,657 64,820 61,171 53,756 20% 41,295 0% -20% FY16 FY17 FY18 FY19 FY20 Mn Alloys Ferro Chrome Cap. Utlization (
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Slide 33: 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
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Slide 35: 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
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Slide 37: 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 38: Zambia Power – Financial & Operating Metrics
Zambia Power – Financial & Operating Metrics Key Operating Metrics FY18 FY19 FY20 Power Units Sold (in Million Units) 958 1,732 1,781 Availability (%) 69.4% 87.0% 76.6% Average PLF (%) 62.1% 74.6% 76.3% Realisation per unit (USD) 0.11 0.12 0.11 Currency USD (In Millions) INR (In Millions) Key Financ
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Slide 40: 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 41: Zambia Coal Mining – Financial & Operating Metrics
Zambia Coal Mining – Financial & Operating Metrics Key Operating Metrics FY17 FY18 FY19 FY20 CAGR (%) Coal Sales to outsiders 276,486 326,612 233,754 241,016 (4%) (Metric Tons Per Annum) Currency USD (In Millions) INR (In Millions) Key Financial Metrics FY17 FY18 FY19 FY20 CAGR (%) FY17 FY18 FY19 FY
Slide 42: Contact details
VSN Raju Nachiket Kale / Chintan Mehta Vice President & Company Secretary Dickenson World Nava Bharat Ventures Ltd Tel : + 91 99209 40808 / +91 9892183389 Tel : + 91 40 2340 3501 Email : nava.bharat@dickensonworld.com Email : vsnraju@nbv.in 42