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Shares of Nava Bharat Ventures tanked 15 per cent to Rs 107.20 on the BSE in the intra-day trade after the company reported a sharp 60 per cent year on year (YoY) drop in consolidated profit after tax (PAT) of Rs 38.45 crore for the quarter ended June 2021 (Q1FY22). It had posted a profit of Rs 95.43 crore in a year-ago quarter.
Revenue for the quarter was down 6.9 per cent YoY at Rs 557.93 crore. At the same time, Ebitda (earnings before interest, taxes, depreciation, and amortization) declined 26.2 per cent YoY at Rs 231.69 crore for the quarter. Ebitda margin contracted 1190 basis points (bps) at 37.9 per cent from 49.8 per cent in Q1FY21.
Nava Bharat Ventures said the quarter’s financial performance, relative to previous periods, was marked by buoyant ferroalloy operations and resurgent coal mining on the positive side. At the same time, continued outage under a significant overhaul of one power unit in Zambia coupled with weakening merchant power market in India impacted it on the opposing side.
The company further said unforeseen outages in one of the manganese smelters, accentuated by industrial oxygen shortage during the second wave of the pandemic resulting in lower production, limited the gains from ferroalloy operations. However, average realizations jumped by 8.3 per cent for Q1 (QoQ).
Stock Covered in the news
