Nava Bharat Ventures Ltd has registered a dip in its net profit for the first quarter ended June 30, 2011, at Rs 51.51 crore against Rs 105.53 crore for the corresponding period last year.

The company’s revenue for the first quarter this year was also lower at Rs 238.49 crore against Rs 289.79 crore it logged for the corresponding quarter last year.

The power business reported revenues of Rs 137.98 crore, including inter-segment sales. The performance was based on stable merchant power business, however on lower volumes. The contribution from ferro-alloys was marginally higher at Rs 88.97 crore compared with Rs 86.10 crore. The sugar business recorded sales of Rs 33.19 crore against Rs 32.24 crore.

For the fiscal ended March 31, 2011, the company registered total income of Rs 1,092.62 crore with a net profit of Rs 306.29 crore.

The interest expenditure was lower at Rs 3.90 crore against Rs 7.70 crore. The diluted EPS was Rs 6.24 for the first quarter of FY 2012.

Commenting about the company performance, Mr D. Ashok, Chairman of Nava Bharat, in a statement said that the first quarter was marked by the contribution from power business which has turned sensitive to the merchant power realisations. The company is, therefore, focusing on developing the power and coal mining business.

Mr P. Trivikram Prasad, Managing Director, said “the ferro alloys operation seems to be set for improved performance. The manganese alloys remain the base for turnover and proposed conversion arrangement of ferro chrome for Tata Steel in our Orissa works will ensure absorption of fixed costs and improved profitability.”

The company hinted that the sugar business could see spurt in realisation based on the perceived shortages in the near term.

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