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I N V E S T O R P R E S E N T A T I O N
J U N E 2 0 1 9
Overview
3-8 Businesses
9-16
Outlook
17-20 Financials
21-25
O V E R V I E W B U S I N E S S E S O U T L O O K F I N A N C I A L S 3
A Year of Commendable Performance FY 2018-19
Total income registered a growth of 32% at
INR 31,951 Mn (USD 462 Mn)
Consolidated PBT doubled to INR 7,768 Mn
(USD 112 Mn)
Highest-ever Ferro Alloys production of
166,376 Tonnes and sale of 167,178 Tonnes
Sugar plant bucked sector trend, riding on
by-products reported profit for the year
Highest-ever Power generation of 3,852
MUs with full year operations of 300 MW
Maamba project
Debt of MCL has come down by USD 59 Mn
during the year
Note: MU=Million Units; INR=Indian Rupee; USD=US Dollars
O V E R V I E W B U S I N E S S E S O U T L O O K F I N A N C I A L S 4
Our Profile
Note: TPA=Tonnes Per Annum; MW=Megawatt; MT=Million Tonnes
With high standards in operational efficiency &
uninterrupted dividend payout
Ferro Alloys-200,000 TPA, Power - 743 MW,
Coal mining - 193 MT, Agri business - Sugar &
allied products and Healthcare enabled
services
Of Manganese and Chromium Ferro
Alloys
Standalone Debt to Equity recorded at 0.10 in FY 19 and
CRISIL credit rating of A/Stable
Signifying leadership in Energy Management,
Safety & Environmental Care
Focus areas – Health, Education and
Livelihood Programmes (HELP)
Established businesses over
four decades
Diversified yet integrated businesses
Among India’s leading manufacturers and exporters
Low gearing
Awards and recognitions
Focus on development of
communities and environment
O V E R V I E W B U S I N E S S E S O U T L O O K F I N A N C I A L S 5
Key Milestones in 40+ Years of Progress
Ferro Silicon Operations
1975 Manganese and Chrome Alloys Operations
Global footprint with 100% subsidiary in Singapore
Commissioned 300 MW power plant in Zambia
1989 2004 2016
Sugar and ancillary products
1980
Captive consumption Merchant sale
Power Generation
1997
the largest coal mine in Zambia
Acquired Maamba Collieries Ltd.
2010
services in South East Asia
Forayed into Healthcare-enabled
2017
at Paloncha, India at Kharagprasad, Odisha, India
O V E R V I E W B U S I N E S S E S O U T L O O K F I N A N C I A L S 6
Executive Management Team
Sugar
MBA from USA with 36 years experience in all facets of project management, manufacturing and Strategy. Oversaw the growth of the Company into a diversified business conglomerate.
MBA from USA with 36 years experience in sugar industry, corporate planning and financial management. Responsible for funding of the group’s projects through optimal mix of equity &debt.
CA, CS with 37 years experience in Finance & Accounts, Internal control, taxation and corporate laws. An expert in project financing, M&A areas; looks after investor relations of the group.
A Graduate in Commerce with 45 years of industrial experience in ferro alloys industry. Responsible for marketing & sourcing of ferro alloys, raw materials etc.
An Engineering Graduate from USA with 10+ years experience in business development. Responsible for developing and managing Nava Bharat’s international businesses based in Asia and Africa.
Mr. D Ashok, Chairman Mr. P Trivikrama Prasad, MD
Mr. GRK Prasad, Executive Director Mr. C V Durga Prasad – Director BD
Mr. D Ashwin, CEO
O V E R V I E W B U S I N E S S E S O U T L O O K F I N A N C I A L S 7
Corporate Social Responsibility (CSR) (India & Zambia)
Sugar
“The Company has always tried to integrate its business with community aspirations. While our factories build and power the nation in a literal sense, our CSR initiatives fuel inclusive growth and community development, addressing the basic needs of citizens even in the remote and deprived regions.”
CSR Philosophy • Key business process for Company’s sustained success and growth. • Improving the quality of lives of stakeholders with focus on
communities around the Company's manufacturing facilities. • Contributing to Sustainable Development Goals (SDGs) of the Nation.
Focus areas: 1. Health 2. Education 3. Livelihood 4. Women empowerment 5. Hunger eradication
Benefitted more than 500,000 people through our
social programmes
CSR Philosophy & Focus areas
O V E R V I E W B U S I N E S S E S O U T L O O K F I N A N C I A L S 8
CSR Activities (Contd.)
Sugar
Some of the Company’s CSR initiatives:
Health Centre, Bhatlapenumarru Schools at Paloncha & Kharagprasad
Women Empowerment Centre, Paloncha Vocational Training Institute, Paloncha Farmer’s Service Centre, Samalkot
Eye Centre, Paloncha Maamba Kindergarten School
New roads laid at Maamba Township
O V E R V I E W B U S I N E S S E S O U T L O O K F I N A N C I A L S 9
Our Diversified yet Integrated Businesses
Note: TPA=Tonnes Per Annum; MW=Megawatt; MT=Million Tonnes; TCD=Tonnes Crushed Per Day; KLPD=Kilo-litres Per Day
Over the years, we have grown our presence in various industry segments, with businesses that share symbiotic relationships.
Ferro Alloys Power Mining Agri business Healthcare enabled services
Manganese 125,000 TPA
Chrome 75,000TPA
India 443 MW
Zambia 300 MW
Sugar 4,000 TCD
Distillery 20 KLPD
Ethanol 30 KLPD
Coal Reserves 193 MT
(estimated)
Presence in South East Asia
100% captive power support
Zambia: Integrated coal supply
O V E R V I E W B U S I N E S S E S O U T L O O K F I N A N C I A L S 10
Paloncha, Telangana
Our Business Segments – Ferro Alloys (India)
Note: TPA=Tonnes Per Annum; MVA=Mega Volt Amp
Products Raw materials
materials Capacity Power
User industry industry
Customer centric centric approach
approach
• Silico Manganese
• Ferro Manganese
(high and medium carbon)
Manganese Ore
• 125,000 TPA Smelters o 3 x 16.5 MVA o 1 x 27 MVA
100% Captive Power available
Steel industry
Export ~40% of the produce, especially to East Asian, South East Asian & Middle East Countries Enduring client relationships in India as well as international markets
• Ferro Chrome Chrome Ore
• 75,000 TPA
Smelters o 2 x 22.5 MVA
100% Captive Power available
Stainless steel industry
Produces Ferro Chrome under conversion agreement with Tata Steel
Operations are insulated against market volatility
Kharagprasad, Odisha
Ferro Alloys business has been one of the key drivers of our growth operating out of two locations in India.
O V E R V I E W B U S I N E S S E S O U T L O O K F I N A N C I A L S 11
Our Business Segments – Power Plants (India)
Note: IPP=Independent Power Producer; FBC=Fluidised Bed Combustion, NBEIL = Nava Bharat Energy India Ltd (subsidiary)
Fuel: Coal
Capacity: 150 MW 1 X 30 MW, 2 X 60 MW
Captive-90 MW & IPP-60 MW
Kharagprasad, Odisha
Fuel: Coal
Capacity: 114 MW 1 X 50 MW, 2 X 32 MW
Captive plant
Paloncha, Telangana
Fuel: Bagasse
Capacity: 9 MW
Co-generation plant
Samalkot, Andhra Pradesh
Fuel: Coal
Capacity: 150 MW
IPP
NBEIL also manufactures ash-based products
NBEIL Paloncha, Telangana
Highlights: • Proximity to coal mines • FBC technology boilers, suitable for usage of any grade of coal • Sourcing coal under captive auction linkages & e-auction
The Company is looking to monetise 20MW IPP & 200 acres of land appurtenant thereto at Dharmavaram (near Kakinada port), Andhra Pradesh
The Power Generating Plants of the Company are spread over the states of Telangana, Odisha & Andhra Pradesh, India.
O V E R V I E W B U S I N E S S E S O U T L O O K F I N A N C I A L S 12
Our Business Segments – Power Plants (Zambia)
Note: MW=Megawatt; PPA=Power Purchase Agreement; USD= US dollars; MT=Million Tonnes
• Fuel: Captive thermal grade coal
• Capacity: 300 MW (2 x 150 MW)
• Technology: CFBC Boilers
• PPA: 20 years with State utility, backed by Sovereign Guarantee
• Tariff: Denominated in USD inducing no currency risk
• O&M: Sponsor-driven O&M
• Leverage: Repaid five debt instalments (outstanding is USD 443 Million out of loan drawn of USD 590 Million)
• Expansion: can be achieved at a relatively lower capital cost & gestation period. Existing dedicated water supply and transmission system can cater to the expanded capacity.
• Resources: SAMREC-compliant estimated reserves of 193 MT assure fuel security
Key facts / features
Maamba Collieries Ltd (MCL), the Company’s Zambian subsidiary operating Zambia's first coal-fired power plant since 2016.
O V E R V I E W B U S I N E S S E S O U T L O O K F I N A N C I A L S 13
Our Business Segments – Coal Mining (Zambia)
• Reserves: High open pit and Thermal-grade coal.
• Total Estimated Reserves: 193 MT SAMREC-compliant coal in active mining area; huge unexplored coal reserve.
• Coal concession: Largest in Zambia; mining title encompasses 7,719 Ha with an active mining area of 1,066 Ha.
• State-of-the-art unit: Contemporary equipment for coal washing, handling and processing.
• Sales: ~20,000 tonnes/Month majorly within Zambia
• Fuel to power plant: Sufficient reserves to cater to the fuel requirements of a capacity of 900 MW (including 300 MW operational now)
Key facts / features
Note: MT=Million Tonnes; MW=Megawatt; Ha=Hectares
We operate Zambia’s largest coal mine – supplying thermal grade coal to MCL’s Power Plant and high grade coal to industrial consumers in Zambia.
O V E R V I E W B U S I N E S S E S O U T L O O K F I N A N C I A L S 14
Our Business Segments – Agri Business (India)
We produce sugar and allied products under this segment at Samalkot, Andhra Pradesh
Product: White Crystal Sugar
Capacity: 4,000 TCD
Average Cane recovery: 10%
Sugar Plant
Product: Rectified Spirit, Extra neutral alcohol
Capacity: 20 KLPD
Distillery
Note: TCD=Tonnes Crushed Per Day; KLPD=Kilo Litres Per Day
Product: Ethanol
Capacity: 30 KLPD
Ethanol Plant
O V E R V I E W B U S I N E S S E S O U T L O O K F I N A N C I A L S 15
Our Business Segments – Agri Business (Zambia)
Proposal and status of a multiproduct agro farm block in Zambia.
Key attributes
• Obtained approval for Environmental Impact Assessment (EIA) from Zambian authority.
• Initiated sugar seed plantation of different varieties.
• Commenced work relating to site development, irrigation facilities and others.
• Market feasibility study underway for sugar & ENA in Zambia and neighbouring countries.
• Following up with Govt. for the promised infrastructure at the Farm block.
Future plans • Exploring to develop other commercial
agriculture crops in the balance land for which studies are under way.
Status of Sugar complex
Conveniently located • 99 years lease of 10,000 Ha land from
Government of Zambia.
• Close proximity to two perennial rivers
• Well placed for market access within Zambia and across to DR Congo.
Developing an integrated sugar complex containing • Sugar plant of 3500 TCD • Baggase-based co-generation power
plant of 10 MW • Molasses-based distillery of 45 KLPD • Sugarcane cultivation across 5000 Ha
with expected yield of 100 tonnes/Ha
Note: Ha=Hectares; MW=Mega Watt; TCD=Tonnes Crushed Per Day; KLPD=Kilo Litres Per Day; ENA= Extra Neutral Alcohol
O V E R V I E W B U S I N E S S E S O U T L O O K F I N A N C I A L S 16
Our Business Segments – Healthcare-enabled Services (South East Asia)
We forayed into healthcare-enabled services with initial focus in South East Asia.
• Asset-light model - Services covering diagnosis, drug procurement to administration.
• Acquired 65% stake in TIASH Pte Ltd. that provided entry to healthcare enabled services.
• Focus on iron deficiency in South East Asia (Singapore and Malaysia).
o Launched “The Iron Suites” clinic in Singapore
to concentrate on the diagnosis and treatment of iron deficiency.
o Signed exclusive distribution agreement with a global MNC for selling iron drug in Malaysia and Singapore. Recently launched the iron drug in Malaysia [Similar rights available with Lupin for India and Pfizer for Canada].
Key highlights
Note: MNCs=Multi National Companies
O V E R V I E W O U T L O O K F I N A N C I A L S 17 B U S I N E S S E S
Outlook for Ferro Alloys
Steel sector’s growth will drive the demand for Ferro Alloys.
Steel Industry Overview
World’s steel growth is expected to be in the range of 1–2% only but Asian economies to drive the global steel demand
• Asia’s ex-China growth is expected to be ~5%
India became world’s second largest crude steel producing country in 2018
India’s steel industry will be dominated by:
Robust demand
India’s finished steel consumption is anticipated to
increase to 230MT by 2031^ from 96MT in
2018.
Increasing investments
The industry is witnessing
consolidation of players, which has led
to investments by entities from other
sectors.
Policy support
National Steel Policy (NSP) 2017
implemented to encourage the steel
industry to reach global
benchmarks.
Competitive advantage
Easy availability of low-cost manpower
and presence of abundant iron-ore
reserves make India competitive in the
global setup. Note: MT=Million Tonnes; ^According to National Steel Policy, source: https://www.worldsteel.org/
O V E R V I E W O U T L O O K F I N A N C I A L S 18 B U S I N E S S E S
Outlook for Ferro Alloys (Contd.)
India is projected to become world’s second largest consumer of finished steel in 2019.
Factors spurring the Steel demand in India
Note: kgs = Kilo grams; yoy = year on year
Increased budget outlay for infrastructure spending yoy
“Make in India” program to accelerate industrial growth thereby benefitting steel industry
India’s per capita finished steel consumption in 2018 is 71 kgs compared to world’s average of 225 kgs
Shift in industry’s attention to produce special steel which will reduce imports
“Housing for All” to drive housing demand thereby benefitting steel industry
Anti-dumping duty on steel imports. 100% FDI allowed in the mining & exploration of metal & non metal ores
O V E R V I E W O U T L O O K F I N A N C I A L S 19 B U S I N E S S E S
Outlook for Ferro Alloys (Contd.)
• Ferro Alloys are vital additives that provide the desired composition and properties to steel and acts as a de-oxidant in its manufacturing
• Approximately 1.5% of Manganese Alloy is required to produce each tonne of steel
Quick facts about of Ferro Alloys and Manganese Alloys
• Installed capacity and production to increase at CAGR of over 6% till 2031
• Per capita consumption (kg) to increase at CAGR of over 7% from 61 kg in 2017 to 158 kg by 2031
Alloy producers to benefit from NSP 2017
• We have a strong foothold in the growing Asian economies with no exposure to China
Capturing macro opportunities
Comparing increase in our production capacity to India’s growth in demand
India Crude Steel Production - MT (Mn)
Our Ferro Alloy Production - MT (000s)
+6%
+11% Note: CAGR=Compound Annual Growth Rate; Mn= Million; MT= Metric Tonnes
Our production has grown at CAGR of 11% since FY 2011.
70 90
112 103
108 95
140 164 166
201120122013201420152016201720182019
69
76
82
88
89
90
97
103
106
2011
2012
2013
2014
2015
2016
2017
2018
2019
O V E R V I E W O U T L O O K F I N A N C I A L S 20 B U S I N E S S E S
Outlook for Power, India
India achieved 100% electrification in 25 states and striving to provide ‘24x7 Power for All’.
• Growing population and increase in per-capita usage.
• Proposed amendments to Electricity Act 2003, which talks of direct benefit transfer of subsidy, 24x7 power supply obligation, penalisation on violation of PPA and others.
• States push to provide 24x7 power to the agriculture sector.
• Government of India’s impetus for electric vehicles.
Factors that spur demand Generation in BUs
Note: BUs=Billion Units
811
877
912
967
1,049
1,107
1,160
1,212
1,267
2011
2012
2013
2014
2015
2016
2017
2018
2019
+6%
O V E R V I E W F I N A N C I A L S 21 B U S I N E S S E S O U T L O O K
Analysing Yearly Financials - Consolidated
Revenue EBITDA PAT
EPS (Diluted - INR) Debt Equity Ratio
Note: INR=Indian Rupee; USD=US Dollars; Mn=Million
255
225
371
462
16,911
14,561
24,172
31,951
2016
2017
2018
2019
INR Mn USD Mn
69
50
132
205
4,567
3,214
8,624
14197
2016
2017
2018
2019
INR Mn USD Mn
45
14
43
67
3,013
929
2,779
4,648
2016
2017
2018
2019
INR Mn USD Mn
7.94
5.25
14.35
21.56
2016
2017
2018
2019
1.00
1.07
0.93
0.75
2016
2017
2018
2019
O V E R V I E W F I N A N C I A L S 22 B U S I N E S S E S O U T L O O K
Analysing Yearly Financials - Standalone
Revenue EBITDA PAT
EPS (Diluted - INR) Debt Equity Ratio
Note: INR=Indian Rupee; USD=US Dollars; Mn=Million
159
161
208
208
10,541
10,413
13,551
14,378
2016
2017
2018
2019
INR Mn USD Mn
28
30
44
46
1,830
1,963
2,899
3,203
2016
2017
2018
2019
INR Mn USD Mn
17
12
25
24
1,112
796
1,616
1,662
2016
2017
2018
2019
INR Mn USD Mn
6.2
4.8
9.7
10.0
2016
2017
2018
2019
0.14
0.09
0.10
0.10
2016
2017
2018
2019
O V E R V I E W F I N A N C I A L S 23 B U S I N E S S E S O U T L O O K
Balance Sheet as at 31 Mar 2019
Note: INR=Indian Rupee; Mn=Million
Particulars Standalone Consolidated
Fixed assets 7,921 58,334
Goodwill - 3,824
Investments & Loans 18,387 336
Other financial assets 1,426 1,878
Total non-current assets 27,735 64,371
Inventories 3,372 4,197
Trade receivables 1,899 13,785
Cash and cash equivalents 291 2,488
Investments & Loans 107 1,448
Other current assets 671 1,111
Total current assets 6,341 23,028
TOTAL ASSETS 34,076 87,400
Assets (INR Mn)
Particulars Standalone Consolidated
Share Capital 357 357
Other equity 28,713 42,158
Total equity 29,070 42,516
Borrowings 1,964 30,426
Other financial liabilities 92 3,212
Total non-current liabilities 2,056 33,638
Borrowings 330 1,315
Trade payables 810 1,407
Other current liabilities 1,809 8,525
Total current liabilities 2,949 11,246
TOTAL LIABILITIES 34,076 87,400
Liabilities (INR Mn)
O V E R V I E W F I N A N C I A L S 24 B U S I N E S S E S O U T L O O K
Standalone – Division-wise Performance
Production – MT/MUs
Ferro alloys
Revenue – INR Mn PBT – INR Mn
Power
Sugar
Note: MT=Metric tonnes; MU=Million Units; INR=Indian Rupee; Mn=Million
139,658
163,724
166,376
2,017
2,018
2,019
6,252
9,070
9,696
2,017
2,018
2,019
(100)
723
641
2,017
2,018
2,019
1,145
1,239
1,245
2,017
2,018
2,019
4,952
5,673
5,642
2,017
2,018
2,019
1,282
1,446
1,206
2,017
2,018
2,019
33,645
47,418
43,344
2,017
2,018
2,019
1,699
1,708
1,440
2,017
2,018
2,019
212
(27)
54
2,017
2,018
2,019
O V E R V I E W F I N A N C I A L S 25 B U S I N E S S E S O U T L O O K
Maamba Collieries – Division-wise Performance
FY18 is the first year of commercial operations for Power division of MCL.
Production – MT/MUs
Coal Mining
Power
USD Mn
2017 2018 2019
Revenue 20.0 31.7 37.6
EBITDA 10.6 9.3 18.0
PBT 7.4 0.7 9.5
2017 2018 2019
Revenue - 113.7 221.0
EBITDA (1.5) 70.8 145.8
PBT (1.9) 18.4 69.6
Note: MT=Metric tonnes; MU=Million Units; USD=US Dollars; Mn=Million
543,451
690,349
798,778
2017
2018
2019
0
1,106
2,196
2017
2018
2019
26
Contact Us
Regd. Office
Nava Bharat Ventures Ltd. 6-3-1109/1, ‘Nava Bharat Chambers’, Raj Bhavan Road, Somajiguda, Hyderabad – 500 082, India.
Corporate Office
Nava Bharat Ventures Ltd. 8-2-318/1, Silicon House, Road No. 14, Banjara Hills, Hyderabad – 500 034, India.
Further information
Nava Bharat Ventures Ltd. CIN: L27101TG1972PLC001549
VSN Raju/PJV Sarma / MN Rao / T. Haribabu
+91 40 23403501 / 67283333, eFax: +91 80 66886121 [email protected]
www.nbventures.com
