India based Nava Limited initiates Integrated Sugar Project in Zambia
Nava Limited reported a robust Q2 2024 performance with a consolidated PAT of Rs. 331.9 crore and approved a stock split to enhance share liquidity. Key highlights include improved profitability in its energy and metals divisions, with a major contribution from its Telangana power operations. The company plans to expand into Zambia with a $125 million integrated sugar complex, further strengthening its green business. CEO Ashwin Devineni emphasized the company’s resilient, diversified strategy that supports cash flow and debt reduction, enhancing shareholder value.
Nava Limited, a leading diversified conglomerate with business interests in metals, energy, mining, commercial agriculture, and healthcare announced its financial results for the quarter ended 30th Sep 2024.
Key Highlights
Stock Split: To enhance the liquidity of the Company’s equity shares, the Board of Directors has approved a stock split. Each fully paid equity share with a face value of Rupees 2 will be subdivided into two equity shares with a face value of Rupee 1 each.
Significant Profit Growth: Consolidated Profit After Tax (PAT) sustained at Rs. 331.9 crore.
Standalone Performance: Standalone profit after tax is at Rs. 146.1 crore for the quarter, bolstered by a US$10 million dividend from Nava Bharat (Singapore) Pte Ltd (NBS).
Enhanced Divisional Profitability: Energy division reported improved profitability, despite major maintenance outages in India and Zambia. Metals division achieved strong realizations through advance order booking and product diversity. External coal sales sustained with stable realisations.
Strategic Project Expansion: MEL has commenced construction of its 300 MW Phase-II project.
Cash inflows from MEL: MEL commenced distributions to Sponsors with discharge of overdue liabilities.
Financial performance
Operational revenue was lower by 3.5% owing to lower availability of power plants at Odisha owing to maintenance outages.
Profitability sans the dividend income improved with the Metals division reporting positive contributions and higher operational performance of 114 MW power plant at Telangana Ops
Telangana Operations – benefitted from blended coal cost and better quality
Metals division reported spurt YoY in PBT of Rs. 11.2 cr Vs aloss of Rs. 30.4 cr for Sep 23
Product diversification of Ferro Silicon has yielded better results – Plan is on to convert one more furnace for Ferro Silicon production in Q3.
With the Government fulfilling its infrastructure commitments of road connectivity and power supply, Nava plans to resume establishment of the Zambia’s Integrated Sugar complex to produce Sugar, ENA and Ethanol with an initial capital out lay of US $125 Million, including that for large captive plantation in Phase I. The market for Sugar, ENA and/or biofuels remains strong in the region and facilitates techno economic feasibility. With the slated implementation period of three years, Nava Group would lay a strong footprint in the Green Business.
Ashwin Devineni, CEO of NAVA Limited, commented on the results saying, “Our latest financial results showcase Nava Limited’s resilience and strategic direction, while enhancing profitability across sectors. Our diversified portfolio and prudent financial management have not only bolstered our cash flows but have also enabled significant debt reduction, thus enhancing shareholder value. Furthermore, our expansion in Zambia with a new integrated sugar plant and our robust agricultural initiatives position us to tap into high-growth opportunities in Africa.”
Founded in 1972, Nava Limited is a publicly listed multinational corporation with interests in metals, energy, mining, healthcare, and commercial agriculture. As one of India’s leading ferroalloy producers, Nava also operates Zambia’s largest mine-to-mouth power plant. Expanding its global presence, Nava is investing in commercial agriculture in Zambia and healthcare in Southeast Asia.
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Source Link : Chinimandi
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