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Lower realisations from merchant power sales impacted Nava Bharat Ventures Ltd profits in 2010-11. The company registered a net profit of Rs 332.21 crore on a consolidated basis (against Rs 495.51 crore it logged for the previous fiscal).
The sales income was also lower at Rs 1,194.64 crore (against Rs 1,230.77 crore).
Standalone results
On a standalone basis, the net profit for the year was lower at Rs 305.69 crore on a sales income of Rs 1,192.89 crore for the year ended March 31, 2011, against net profit of Rs 498.68 crore and sales income of Rs 1,236.38 crore for the previous year.
The board has declared a divided of Rs 6 per equity share. This works out to about 20 per cent of the company profit after tax of Rs 306 crore on a standalone basis.
According to the company, power continues to drive the performance in FY 2011. Of the total income of Rs 1,092.5 crore, power sales accounted for Rs 655.7 crore in the backdrop of stable volumes and muted realisations on the merchant side. While ferro alloys contributed Rs 438.5 crore, sugar segment accounted for sales of Rs 86.2 crore.
Mr D. Ashok, Chairman of Nava Bharat, in a statement said: “The power segment faced challenges and the company was no exception. We are witness to an uncharacteristic operating environment with a moderation in merchant power realisations and higher input costs.”
Projects
The company has begun groundwork for a 300 MW plant and the PPA and financial closure are likely shortly. It expects to initiate sale of low grade coal in the next few quarters.
The company's 64 MW project Kharagprasad is complete and awaiting nod to start. And the work on 150 MW plant at Paloncha is on schedule.
During the fourth quarter, the company transferred the balance shareholding in its power subsidiary to Essar Power and received Rs 85 crore and concluded the sale transaction.
The Nava Bharat stock on Friday ended 1.34 per cent up at Rs 227 on the BSE.
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