Nava (513023) Q4 23/24 earnings summary

Executive summary

• Achieved record consolidated revenue of ₹3,95,503 lakhs (up 0.7% YoY) and highest-ever consolidated net profit of ₹1,25,608 lakhs (up 2.8% YoY), driven by strong performance in energy and mining segments.

• Attained long-term debt-free status at both standalone and group levels; Maamba Collieries Limited (MCL) in Zambia repaid $314.4 million in long-term debt.

• Highest-ever EPS of ₹65; recommended final dividend of ₹4 per share (200%).

Financial highlights

• Standalone revenue declined 6.7% YoY to ₹1,54,757 lakhs due to subdued ferro alloy business and an outage at Odisha plant.

• Standalone PAT fell 32.1% YoY to ₹21,901 lakhs; standalone EBITDA margin at 21.5%.

• Consolidated EBITDA margin at 46.9% (down from 50.1% YoY) due to losses in ferro alloys.

• Debt-to-equity ratio improved to 0.05x (consolidated) and 0.003x (standalone) due to debt repayments.

• Return on net worth (consolidated) at 16.28%.

Outlook and guidance

• MCL to begin distributions to sponsors from FY25 after becoming debt-free.

• MCL pursuing Phase-2 expansion (300 MW) and magnetite ore mining in Zambia.

• Avocado plantation in Zambia progressing; commercial revenues expected within two years.

• Domestic steel demand expected to drive ferro alloys; further expansion planned in Telangana and Odisha.