Nava Ltd is expecting its manganese alloy business to benefit from economies of scale providing the company with better input cost management and access to wider markets.
“Our existing procurement contracts for manganese ore provide visibility of direct costs and help us adapt efficiently to commodity cycles,’‘ Ashwin Devineni, Chief Executive Officer, Nava Ltd said in his message to the shareholders in the annual report for the year 2022-23.
“We anticipate that backward integration into mining will not only result in further cost savings but also create expansion opportunities. We expect to see progress in this aspect starting from the next financial year (2023-24),’‘ Devineni said.
The company achieved an ‘impressive’ performance for the fiscal year 2022-23, despite the disruptive economic challenges that our core businesses have faced, he added.
During FY23, the Hyderabad-based company posted a record consolidated revenues of ₹3,928 crore and a net profit of ₹1,221.69 crore on account of significant improvements in its Zambian operations, while its domestic businesses performed well in the first half and faced the challenges of the commodity cycle in the second half.
Nava reported a financial turnaround in Zambian operations during FY 2023. Operational metrics reached their highest level, and the improved cash flow position enabled the Zambian subsidiary to fully address its long-overdue debt and reduce leverage, the CEO said.
“Furthermore, the amicable resolution of the “Consented Arbitral Award” and subsequent payments from ZESCO should assist the Zambian subsidiary in achieving compliance with financial covenants, paving the way for equity returns in 2023-24,’‘ he added.