Nava Limited · NSE:NAVA
Nava — Nava Bharat Ventures — Q4 FY20 Earnings Presentation
42 slides from Nava's earnings presentation, July 2020
Slide 1: Financial Performance Update - Q4 & FY20
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 – Q4 & FY20 16 Company Overview 26 Business Segments
Slide 4: Financial Performance Update - Q4 & FY20
Slide 5: Q4 & FY20 – Consolidated Financial Performance
Q4 & FY20 – Consolidated Financial Performance NET REVENUES (INR Mn) # EBITDA & EBITDA MARGIN (INR Mn) # PAT & PAT MARGIN (INR Mn) 22.9% 8,091 42.8% 42.2% 7,257 1,851 3,414 3,105 7.9% +11.5 % +9.9 % +222.1 % 575 Q4 FY19 Q4 FY20 Q4 FY19 Q4 FY20 Q4 FY19 Q4 FY20 NET REVENUES (INR Mn) # EBITDA & EBITDA
Slide 6: Q4 & FY20 – Domestic Financial Performance
Q4 & FY20 – Domestic Financial Performance NET REVENUES (INR Mn) # EBITDA & EBITDA MARGIN (INR Mn) # PAT & PAT MARGIN (INR Mn) 23.0% 4,103 4,093 21.5% 12.2% 12.3% 882 943 500 502 -0.2 % +6.9 % +0.4 % Q4 FY19 Q4 FY20 Q4 FY19 Q4 FY20 Q4 FY19 Q4 FY20 NET REVENUES (INR Mn) # EBITDA & EBITDA MARGIN (INR
Slide 7: Q4 & FY20 - Consolidated Profit & Loss Statement
Q4 & FY20 - Consolidated Profit & Loss Statement Particulars (INR Million) # Q4 FY20 Q4 FY19 QoQ (%) FY20 FY19 YoY (%) Total Revenue 8,091 7,257 11.5% 27,587 29,460 (6.4%) Cost of Goods Sold 2,390 2,480 (3.6%) 7,848 9,580 (18.1%) Gross Profit 5,701 4,777 19.4% 19,739 19,880 (0.7%) Gross Margin (%) 7
Slide 8: Q4 & FY20 - Domestic Profit & Loss Statement
Q4 & FY20 - Domestic Profit & Loss Statement Particulars (INR Million) # Q4 FY20 Q4 FY19 YoY (%) FY20 FY19 YoY (%) Total Revenue 4,093 4,103 (0.2%) 13,607 15,480 (12.1%) Cost of Goods Sold 2368 2392 (1.0%) 7,682 8,812 (12.8%) Gross Profit 1,726 1,710 0.9% 5,925 6,669 (1.1%) Gross Margin (%) 42.2% 41
Slide 9: Q4 & FY20 – Segmental Performance Highlights
Q4 & FY20 – Segmental Performance Highlights Revenue Breakdown - By Segments (INR Mn) Segments Q4 FY20 Q4 FY19 YoY (%) FY20 FY19 YoY (%) India – Power Operations 2,082 2,242 (7.1%) 7,400 8,243 (10.2%) Ferro Alloys 2,739 2,615 4.8% 8,831 9,696 (8.9%) Zambia – Power Operations 4,179 3,376 23.8% 14,313
Slide 10: Q4 & FY20 – Segmental Performance Highlights
Q4 & FY20 – Segmental Performance Highlights EBITDA Breakdown (INR Mn) - By Segments Segments Q4 FY20 Q4 FY19 YoY (%) FY20 FY19 YoY (%) % EBITDA Margin Q4 FY20 Q4 FY19 FY20 FY19 India – Power 650 681 (4.5%) 1,736 2,005 (13.4%) India - Power 31.2% 30.4% 23.5% 24.3% Ferro Alloys 219 124 76.9% 451 728
Slide 11: India Power Operations – Financial & Operating Metrics
India Power Operations – Financial & Operating Metrics Key Operating Metrics Q4 FY20 Q4 FY19 YoY (%) FY20 FY19 YoY (%) Total Power Units Sold (in Million Units) 423 431 (2%) 1,535 1,659 (8%) Q4 FY20 Merchant Sales 243 251 (3%) 829 972 (15%) Domestic power revenues and profitability was adversely i
Slide 12: Ferro Alloys Operations – Financial & Operating Metrics
Ferro Alloys Operations – Financial & Operating Metrics Key Operating Metrics Q4 FY20 Q4 FY19 YoY (%) FY20 FY19 YoY (%) Q4 FY20 Ferro & Silico Manganese Ferro Alloys division reported an overall improved performance with Production (tons) 25,833 27,782 (7.0%) 100,803 105,032 (4.0%) higher revenues
Slide 13: Zambia Power Operations – Financial & Operating Metrics
Zambia Power Operations – Financial & Operating Metrics Key Operating Metrics Q4 FY20 Q4 FY19 YoY (%) FY20 FY19 YoY (%) Power Units Sold (in Million Units) 525 411 27.7% 1,781 1,732 2.9% Average PLF (%) 90% 72% - 76% 75% - USD Millions INR Millions Key Financial Metrics Q4 FY20 Q4 FY19 YoY (%) FY20
Slide 14: Zambia Coal Mining – Financial & Operating Metrics
Zambia Coal Mining – Financial & Operating Metrics Key Operating Metrics Q4 FY20 Q4 FY19 YoY (%) FY20 FY19 YoY (%) Coal Sales to outsiders (In MTPA) 33,640 49.402 (31.9%) 241,016 233,754 3.1% USD Millions INR Millions Key Financial Metrics Q4 FY20 Q4 FY19 YoY (%) FY20 FY19 YoY (%) Q4 FY20 Q4 FY19 Yo
Slide 15: Company Overview
NAVA BHARAT Company Overview
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: 60%+ of Total Revenue & EBITDA is Largely Non-cyclical
60%+ 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) 5,046 2,353 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 Manganese Alloys & Ferro Chrome iii) Import tie up for bulk of the con
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: Indian Power Business
y —K / st TOON Wy ox OO AAW AMAR IVA | UAV RKYAY) AX aN TW A ines: Power Busi fan Ind
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: Ferro Alloys
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 (
Slide 32: Healthcare
32
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
Slide 34: Operations & Maintenance Services
= 4 C3 < = a < Ss z 2
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
Slide 36: Zambia Power
36
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
Slide 39: Zambia Coal Mining
39
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
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] 42