Nava Limited · NSE:NAVA
Nava — Nava Bharat Ventures — Q2 FY20 Earnings Presentation
47 slides from Nava's earnings presentation, November 2019
Slide 1: Financial Performance Update - Q2 & H1 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 – Q2 & H1 FY20 17 Company Overview 27 Business Segments
Slide 4: Financial Performance Update
Slide 5: Q2 & H1 FY20 – Domestic Financial Performance
Q2 & H1 FY20 – Domestic Financial Performance NET REVENUES (INR Mn) EBITDA & EBITDA MARGIN (INR Mn) PAT & PAT MARGIN (INR Mn) 9.9% 3,700 21.0% 6.4% 3,234 16.5% 855 367 -12.6 % -31.7 % -43.6 % 584 207 Q2 FY19 Q2 FY20 Q2 FY19 Q2 FY20 Q2 FY19 Q2 FY20 NET REVENUES (INR Mn) EBITDA & EBITDA MARGIN (INR Mn
Slide 6: Q2 & H1 FY20 – Consolidated Financial Performance
Q2 & H1 FY20 – Consolidated Financial Performance NET REVENUES (INR Mn) EBITDA & EBITDA MARGIN (INR Mn) PAT & PAT MARGIN (INR Mn) 47.1% 18.3% 14.6% 7,684 41.0% 6,806 3,781 1,405 2,930 991 -11.4 % -22.5 % -29.4 % Q2 FY19 Q2 FY20 Q2 FY19 Q2 FY20 Q2 FY19 Q2 FY20 NET REVENUES (INR Mn) EBITDA & EBITDA MA
Slide 7: Q2 & H1 FY20 - Domestic Profit & Loss Statement
Q2 & H1 FY20 - Domestic Profit & Loss Statement Particulars (INR Million) Q2 FY20 Q2 FY19 YoY (%) H1 FY20 H1 FY19 YoY (%) Total Revenue 3,233.6 3,699.8 -12.6% 7,500.2 7,790.8 -3.7% Cost of Goods Sold 2,055.7 2,335.1 -12.0% 4,595.3 4,976.3 -7.7% Gross Profit 1,177.9 1,364.6 -13.7% 2,904.9 2,814.5 3.2
Slide 8: Q2 & H1 FY20 - Consolidated Profit & Loss Statement
Q2 & H1 FY20 - Consolidated Profit & Loss Statement Particulars (INR Million) Q2 FY20 Q2 FY19 YoY (%) H1 FY20 H1 FY19 YoY (%) Total Revenue 6,806.0 7,683.5 -11.4% 14,809.3 15,111.9 -2.0% Cost of Goods Sold 2,109.1 2,572.8 -18.0% 4,768.5 5,403.9 -11.8% Gross Profit 4,696.9 5,110.7 -8.1% 10,040.8 9,70
Slide 9: Consolidated Balance Sheet
Consolidated Balance Sheet ASSETS (INR Mn) H1 FY20 FY19 EQUITY AND LIABILITIES (INR Mn) H1 FY20 FY19 Non Current Assets Equity Fixed Assets 62,064.1 62,387.4 Equity Share capital attributable to Shareholders 39,657.3 38,099.8 Investments 124.0 106.6 Minority Interest 5,091.8 4,415.9 Other Financial
Slide 10: Q2 & H1 FY20 – Segmental Performance Highlights
Q2 & H1 FY20 – Segmental Performance Highlights Revenue Breakdown - By Segments (INR Mn) Segments Q2 FY20 Q2 FY19 YoY (%) H1 FY20 H1 FY19 YoY (%) India – Power Operations 1,711.5 1,794.8 -4.6% 4,093.8 3,966.7 3.2% Ferro Alloys 2,036.4 2,509.5 -18.9% 4,332.5 4,572.8 -5.3% Sugar & Others 1,105.9 1,662
Slide 11: Q2 & H1 FY20 – Segmental Performance Highlights
Q2 & H1 FY20 – Segmental Performance Highlights EBITDA Breakdown (INR Mn) - By Segments Segments Q2 FY20 Q2 FY19 YoY (%) H1 FY20 H1 FY19 YoY (%) % EBITDA Margin Q2 FY20 Q2 FY19 H1 FY20 H1 FY19 India – Power 213.0 283.8 -24.9% 788.8 742.6 6.2% India - Power 12.4% 15.8% 19.3% 18.7% Ferro Alloys 15.4 1
Slide 12: India Power Operations – Financial & Operating Metrics
India Power Operations – Financial & Operating Metrics Key Operating Metrics Q2 FY20 Q2 FY19 YoY (%) H1 FY20 H1 FY19 YoY (%) • Total power units sold increased by 4.0% YoY in H1 FY20 Total Power Units Sold (in Million Units) 373 364 2.5% 855 822 4.0% • Merchant power sales increased by 10.5% • Capti
Slide 13: Ferro Alloys Operations – Financial & Operating Metrics
Ferro Alloys Operations – Financial & Operating Metrics Key Operating Metrics Q2 FY20 Q2 FY19 YoY (%) H1 FY20 H1 FY19 YoY (%) Ferro Chrome Production (tons) 16,690 16,642 0.3% 33,612 27,938 20.3% Sales (tons) 16,690 16,642 0.3% 33,612 27,938 20.3% Ferro & Silico Manganese • Ferro Alloys Revenues dec
Slide 14: Sugar Operations – Financial & Operating Metrics
Sugar Operations – Financial & Operating Metrics Key Operating Metrics Q2 FY20 Q2 FY19 YoY (%) H1 FY20 H1 FY19 YoY (%) Sugar Volume Sold (tons) 7,052 7,064 -0.2% 14,566 23,706 -38.6% Ethanol Sold (tons) 485 560 -13.4% 1,832 1,468 24.8% Key Financial Metrics (INR Millions) Q2 FY20 Q2 FY19 YoY (%) H1
Slide 15: Zambia Power Operations – Financial & Operating Metrics
Zambia Power Operations – Financial & Operating Metrics Key Operating Metrics Q2 FY20 Q2 FY19 YoY (%) H1 FY20 H1 FY19 YoY (%) Power Units Sold (in Million Units) 462.2 433.8 6.6% 933.0 821.5 13.6% Average PLF (%) 78.9% 74.2% 470 bps 80.0% 70.6% 935 bps USD Millions INR Millions Key Financial Metrics
Slide 16: Zambia Coal Mining – Financial & Operating Metrics
Zambia Coal Mining – Financial & Operating Metrics Key Operating Metrics Q2 FY20 Q2 FY19 YoY (%) H1 FY20 H1 FY19 YoY (%) Coal Sales to outsiders (In MTPA) 55,182 63,196 -12.7% 122,969 107,539 14.3% USD Millions INR Millions Key Financial Metrics Q2 FY20 Q2 FY19 YoY (%) H1 FY20 H1 FY19 YoY (%) Q2 FY2
Slide 17: Company Overview
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Slide 18: 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 19: 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 20: Diversified Geographic Presence
Diversified Geographic Presence Domestic Operations – Facilities Chart on India Map Global Operations – Facilities Chart on Global Map 20
Slide 21: 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 22: 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 23: 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 24: 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 25: 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 26: 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 27: Discussing Our Business Segments
DISCUSSING OUR BUSINESS SEGMENTS Indian Ferro Indian Power Indian Sugar & Healthcare Zambia Power Zambia Mining Alloys Allied
Slide 28: Indian Power Business
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Slide 29: 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 30: 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 31: Ferro Alloys
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Slide 32: 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 33: 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 34: Sugar & Allied Business
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Slide 35: 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 36: 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 37: Healthcare
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Slide 38: 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 39: Operations & Maintenance Services
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Slide 40: 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 41: Zambia Power
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Slide 42: 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 43: 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 44: Zambia Coal Mining
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Slide 45: 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 46: 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 47: 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] 47