The Hindu Business Line : Nava Bharat Ventures Q3 net profit up at Rs 36.45 cr

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Hyderabad Jan. 22 Nava Bharat Ventures Ltd (NBVL) has recorded an eight-fold jump in net profit at Rs 36.45 crore during the third quarter ended December 31, 2006 from Rs 4.7 crore in the corresponding quarter of the previous fiscal.

The turnover for the quarter stood at Rs 140.19 crore (Rs 101.53 crore), a 38.1 per cent increase.The earnings per share stood at Rs 5.46.

The performance was mainly due to the all round growth in its business segments — power & ferro alloys, according to the Managing Director of the company, Mr D. Ashok.

He said the company benefited from the business shift in favour of power, while continuing to be a leading producer-supplier of ferro alloys to the steel industry.

Merchant sale of power significantly contributed to the revenues, he said in a press release.

In the case of ferro alloys, better pricing environment and relatively stable cost of key inputs resulted in a positive impact. Given the demand seen for the company's products, ferro alloy business would support the strong performance recorded in power.

Nava Bharat is, at present, undertaking capacity enhancement across its power generation facilities including co-generation of power in sugar facility, which can contribute to the earnings in the coming quarters, he said.

The company raised about Rs 213.23 crore and Rs 30.87 crore respectively through the issue of Foreign Currency Convertible Bonds , during September & October 2006.

The funds were kept as deposits in banks up to December 31, 2006, after meeting issue expenditure of Rs 24.80 crore.