Nava Limited · NSE:NAVA
Nava — Nava Bharat Ventures — Q1 FY20 Earnings Presentation
45 slides from Nava's earnings presentation, Oct 4, 2019
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Slide 2: Agenda
03 Company Overview 13 Business Segments 33 Financial Performance Update – Q1 FY20
Slide 3: Company Overview
NAVA BHARAT Company Overview
Slide 4: 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 5: Company Structure
Company Structure Ferro-Alloys Power Mining Sugar O&M services 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 M
Slide 6: Diversified Geographic Presence
Diversified Geographic Presence Domestic Operations – Facilities Chart on India Map Global Operations – Facilities Chart on Global Map 6
Slide 7: 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 8: 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 9: 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 10: 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 & Silica (Tata Conversion) Manganese Revenue (INR Mn) 5,607 2,638 1,960 7,736 1,440 1,850 14,78
Slide 11: 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 12: 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 13: Discussing Our Business Segments
DISCUSSING OUR BUSINESS SEGMENTS Indian Ferro Indian Power Indian Sugar & Healthcare Zambia Power Zambia Mining Alloys Allied
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Slide 15: 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 16: 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 17: Nava Bharat
NAVA BHARAT
Slide 18: 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 19: 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 20: Sugar & Allied Business
Sugar & Allied Business
Slide 21: 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 22: 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 23: Healthcare
Healthcare
Slide 24: 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 25: Nava Bharat
NAVA BHARAT
Slide 26: 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 28: 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 29: 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
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Slide 31: 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 32: 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 33: Financial Performance Update – Q1 FY20
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Slide 34: Q1 FY20 – Domestic Financial Performance Highlights
Q1 FY20 – Domestic Financial Performance Highlights NET REVENUES EBITDA & EBITDA MARGIN PAT & PAT MARGIN 24.4% 4,013 4,200 21.6% 11.4% 9.7% 978 908 457 +4.7 % 407 -7.1 % -10.7 % Q1 FY19 Q1 FY20 Q1 FY19 Q1 FY20 Q1 FY19 Q1 FY20 NET REVENUES EBITDA & EBITDA MARGIN PAT & PAT MARGIN 21.4% 22.5% 10.0% 10.
Slide 35: Q1 FY20 – Consolidated Financial Performance Highlights
Q1 FY20 – Consolidated Financial Performance Highlights NET REVENUES EBITDA & EBITDA MARGIN PAT & PAT MARGIN 8,003 40.4% 40.2% 15.5% 15.3% 7,428 2,998 3,214 1,154 1,224 +7.7 % +7.2 % +6.1 % Q1 FY19 Q1 FY20 Q1 FY19 Q1 FY20 Q1 FY19 Q1 FY20 NET REVENUES EBITDA & EBITDA MARGIN PAT & PAT MARGIN 31,035 45
Slide 36: Q1 FY20 - Domestic Profit & Loss Statement
Q1 FY20 - Domestic Profit & Loss Statement Particulars (INR Million) Q1 FY20 Q1 FY19 YoY (%) FY19 FY18 YoY (%) Total Revenue 4,199.9 4,012.5 4.7% 16,092.8 15,896.1 1.2% Cost of Goods Sold 2,539.6 2,641.1 -3.8% 9,691.1 9,678.2 0.1% Gross Profit 1,660.3 1,371.4 21.1% 6,401.7 6,218.0 3.0% Gross Margin
Slide 37: Q1 FY20 - Consolidated Profit & Loss Statement
Q1 FY20 - Consolidated Profit & Loss Statement Particulars (INR Million) Q1 FY20 Q1 FY19 YoY (%) FY19 FY18 YoY (%) Total Revenue 8,003.2 7,428.4 7.7% 31,034.6 23,477.8 32.2% Cost of Goods Sold 2,659.3 2,831.1 -6.1% 10,459.5 10,232.7 2.2% Gross Profit 5,343.9 4,597.3 16.2% 20,575.2 13,245.1 55.3% Gro
Slide 38: Q1 FY20 – Segmental Performance Highlights
Q1 FY20 – Segmental Performance Highlights Revenue Breakdown - By Segments (INR Mn) Segments Q1 FY20 Q1 FY19 YoY (%) FY19 FY18 YoY (%) India – Power Operations 2,348.1 2,148.7 9.3% 8,245.0 8,587.8 -4.0% Ferro Alloys 2,296.1 2,063.3 11.3% 9,695.6 9,069.7 6.9% Sugar & Others 811.5 947.3 -14.3% 3,290.3
Slide 39: Q1 FY20 – Segmental Performance Highlights
Q1 FY20 – Segmental Performance Highlights EBITDA Breakdown (INR Mn) - By Segments Segments Q1 FY20 Q1 FY19 YoY (%) FY19 FY18 YoY (%) % EBITDA Margin Q1 FY20 Q1 FY19 FY19 FY18 India – Power 575.8 458.8 25.5% 2,005.0 2,218.6 -9.6% India - Power 24.5% 21.4% 24.3% 25.8% Ferro Alloys 200.4 215.2 -6.9% 7
Slide 40: India Power Operations – Financial & Operating Metrics
India Power Operations – Financial & Operating Metrics Key Operating Metrics Q1 FY20 Q1 FY19 YoY (%) FY19 FY18 YoY (%) Total Power Units Sold (in Million Units) 483.6 473.8 2.1% 1,672.0 1,805.9 -7.4% Merchant Sales 312.9 315.4 -0.8% 984.0 1,139.9 -13.7% Captive 170.7 158.4 7.8% 688.0 666.0 3.3% PLF
Slide 41: Ferro Alloys Operations – Financial & Operating Metrics
Ferro Alloys Operations – Financial & Operating Metrics Key Operating Metrics Q1FY20 Q1FY19 YoY (%) FY19 FY18 YoY (%) Ferro Chrome Production (tons) 16,922 11,296 49.8% 61,567 68,000 -9.5% Sales (tons) 16,922 11,296 49.8% 61,567 68,000 -9.5% Ferro & Silica Manganese Production (tons) 24,156 25,893 -
Slide 42: Sugar Operations – Financial & Operating Metrics
Sugar Operations – Financial & Operating Metrics Key Operating Metrics Q1 FY20 Q1 FY19 YoY (%) FY19 FY18 YoY (%) Sugar Production (tons) 2,040 - - 43,344 47,418 -8.6% Sold (tons) 7,514 16,642 -54.8% 36,550 37,857 -3.5% Ethanol Ethanol Production (‘000 Litres) 1,592 1,312 21.4% 3,540 2,867 23.5% Etha
Slide 43: Zambia Power Operations – Financial & Operating Metrics
Zambia Power Operations – Financial & Operating Metrics Key Operating Metrics Q1 FY20 Q1 FY19 YoY (%) FY19 FY18 YoY (%) Power Units Sold (in Million Units) 470.7 387.7 21% 1,731.8 958.3 81% Average PLF (%) 81.0% 67.1% - 74.6% 62.1% - USD Millions INR Millions Key Financial Metrics Q1FY20 Q1FY19 YoY
Slide 44: Zambia Coal Mining – Financial & Operating Metrics
Zambia Coal Mining – Financial & Operating Metrics Key Operating Metrics Q1 FY20 Q1 FY19 YoY% FY19 FY18 YoY% Coal Sales to outsiders 67,787 44,343 53% 233,754 326,612 -28% (Metric Tons Per Annum) USD Millions INR Millions Key Financial Metrics Q1FY20 Q1FY19 YoY (%) FY19 FY18 YoY (%) Q1FY20 Q1FY19 Yo
Slide 45: 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 : [email protected] Email : [email protected] 45