Nava Bharat Q3 net up 33% at s 75 cr

Nava Bharat Ventures Limited, a Hyderabad-based diversified firm with interests in power generation, ferro alloys, sugar and its downstream products and infrastructure, reported a net profit of Rs 101 crore for the third quarter ended December 31, 2008, as compared with Rs 75.28 crore during the same period a year ago, registering a growth of 33.24 per cent.

Total income of the company grew 12.15 per cent to Rs 286.32 crore for the quarter, as against Rs 255.28 crore in the corresponding period last year, primarily fuelled by its power business.

“The rise in net profit was on account of write back of excess tax provision following the fall in earning of our ferro alloy division,” said D Ashok, chairman and managing director of the company.

Segment-wise, the company’s ferro alloys division took a hit with revenues plummeting 68.25 per cent to 58.39 Rs crore as against Rs 183.94 crore, while revenues from the sugar division declined 16.76 per cent to Rs 15.44 crore, from the earlier Rs 18.55 crore. Revenues from the power business, however, touched Rs 228 crore, as compared with Rs 92.64 crore in the corresponding quarter last year,  implying a growth of 146.11 per cent.

“We have been focusing on the power model to drive our earnings growth for quite some time. The incremental capacity helped us increase the quantum of electricity sold on a merchant basis. We are committed to our presence in this business and continue to pursue opportunities to expand generation capacities,” Ashok said.

Nava Bharat has a total installed power generation capacity of 217Mw, which is being expanded to 237Mw.

“The ferro alloy business, which had given us two quarters of good results, is witnessing a marked de-gearing given the perceived slowdown in steel worldwide. The focus is clearly going to be on optimising the earnings profile, leaning predominantly towards power business. The sugar business, we hope, will turn positive this year, driven by reasonable growth in realisations,” he added.