Nava Limited Achieves Highest-Ever Quarterly Profit in Q3 FY24 with Estimated Debt-Free Status Soon and Free Cash Flow Providing Impetus for Growth

BusinessWire India
Hyderabad (Telangana) [India], February 2: Nava Limited, a leading conglomerate in metals, energy, mining, agribusiness and healthcare products, announced impressive financial results for the third quarter and the nine months period of the fiscal year 2024. The company showcased a stable financial performance, marked by a substantial reduction in debt, increased profitability, and noteworthy achievements across various segments.
Key Highlights
Debt Reduction
* The consolidated debt of Nava saw a significant reduction by 93% compared to Dec 22 with MCL, the Zambian Subsidiary having practically repaid the entire long-term debt. The company is poised to be debt-free by the end of fiscal year. Starting Dec 22, MCL repaid long-term debt of INR 2962.1 Cr (US$ 356.4 Million) up to the end of January 2024 leaving only INR 224.3 Cr (US$ 27.0 Million) to be cleared before March 2024 to become long-term debt-free.
* Nava Limited has achieved a long-term debt-free status at standalone level during the quarter.
* Free cash flows and stable financial growth across the group thereafter show promising opportunities for growth and corporate actions.
Financials
* Nava at consolidated level achieved highest-ever quarterly profit of INR 465.0 Cr during the third quarter and a remarkable profit of INR 1001.0 Cr for 9-months period ended 31 Dec 2023.
* Energy division has exhibited robust operating performance despite weak quarter for the business.
* Mining division has bettered its sales and profitability with improved coal sales.

*Exchange rate USD= INR 82.71 as on 31st Dec 2023 and INR 79.77 as on 31 Dec 2022
* Consolidated profit increased by an impressive 28.2% to Rs. 465.0 crore during the quarter compared to Dec 2022, with the profit for the 9-month period reaching Rs. 1001 Cr
* Energy division revenue registered a growth of 13.7% compared to the corresponding quarter, attributed to improved operational parameters of NBEIL's 150 MW power plant
* Mining division witnessed revenue growth of 31.2%, driven by improved sales quantities and enhanced profitability
* MCL's power plant operated at an impressive PLF of 96.7% compared to 99.9% for Dec 2022, contributing to overall financial performance
* MCL aims to become debt-free by the end of the financial year, with a debt outstanding of US$ 27.0 Mn to be paid
* NBEIL's power plant operated at a healthy PLF of 62.9% during the quarter compared to 7.4% in Dec 2022, supported by the availability of bilateral contracts
* NBEIL reduced its debt by INR 38.4 Cr during the quarter, resulting in significant savings on finance costs

* Standalone profit increased by 89% compared to Dec 2022 and by 70% quarter-on-quarter despite a slight dip in revenue
* The FAP unit at Odisha operations resumed production in January 2024
* Energy segment achieved 11.2% revenue growth compared to the corresponding quarter, driven by operational excellence in the 150 MW power plants in Odisha and availability of bilateral contracts
Cote D'Ivoire Operations
* The exploration of the Mn Ore mine in Ivory Coast is progressing onto the final phase of geotechnical studies, enabling Nava Limited's backward integration and commitment to global expansion.
Agribusiness
* The Company completed the Avocado tree plantation in 205 hectares as on date with 70,000+ trees, with promising plant growth, reinforcing the company's commitment to sustainable development.
Ashwin Devineni, CEO, Nava Limited, expressed his satisfaction with the company's performance, stating, "We are delighted to announce these exceptional results, reflecting our dedication to financial stability, operational excellence, and sustainable growth. The significant debt reduction and improved profitability across segments underscore our commitment to creating long-term value for our stakeholders. Nava Limited remains optimistic about the future, with a strategic focus on achieving its goal of becoming long-term debt-free at the group level by the end of the fiscal year 2024."
Debt Position as on 31st Dec 2023 (INR Crore)
The debt position reveals that majority of the consolidated debt is associated with Zambian Operations which does not have any recourse to Nava Limited or its other subsidiaries. Compared to Dec 2022, the consolidated long-term debt has come down substantially by 87% to Rs. 761.3 crore from Rs. 3,356 crore.

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