Nava Bharat Ventures stock tanks 13% after Q1 PAT declines 60% yoy to Rs38.5cr

The company’s consolidated revenue stood at Rs557.9cr in Q1FY22. EBITDA was 26.2% lower.

Aug 05, 2021 10:08 IST India Infoline News Service

Quarterly Results
Nava Bharat Ventures Ltd, with geographically diversified businesses including ferroalloys, coal mining, and power generation announced on Wednesday its financial results for the first quarter ended June 30, 2021. Consolidated revenue declined 7% to Rs557.9cr in Q1FY22 from Rs599.3cr in Q1FY21.

The company’s Profit After Tax (PAT) declined 60% yoy to Rs38.5cr in Q1FY22 compared to Rs95.4cr in Q1FY21. EBITDA was 26.2% lower at Rs231.7cr compared to Rs314cr in Q1FY21. EBITDA margin was 37.9% in Q1FY22 compared to 49.8% in Q1FY21. Adjusted EBITDA was 46.2% lower at Rs211cr compared to Rs3,92.5cr in Q1FY21.

The company stock was under extreme pressure on Thursday and at around 10.56 AM, Nava Bharat Ventures Ltd was trading at Rs109.15 per piece down by Rs16.65 or 13.24% from its previous closing of Rs125.80 per piece on the BSE.

“Financial performance of the quarter, relative to previous periods, was marked by buoyant ferro alloy operations and resurgent coal mining on the positive side while continued outage under major overhaul of one power unit in Zambia coupled with weakening merchant power market in India impacted it on the negative side,” company said in a filing on Wednesday.

Unforeseen outage in one of the manganese smelters, accentuated by industrial oxygen shortage during the second wave of the pandemic resulting in lower production limited the gains from ferro alloy operations though average realisations jumped by 8.3% for Q1 (qoq).

It further said, the Q1 sales performance was steady on a gradual upswing yoy.  Non-cash adjustments for gains or losses on account of foreign exchange and derivative contracts impacted the other income relative to March 2021 quarter.  Domestic power generation was spurred by 60 MW IPP coming on board in Odisha during Q1 though erratic merchant power rates and transmission congestion impacted the power generation and performance.

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