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Nav Bharat Ventures announced the results for the quarter ended June 2012 and held a conference call on August 9th, 2012 to discuss the results and its future growth strategies. Mr. Ankit Agarwal Director and other top management addressed the meeting
Highlights of the call
During the quarter, Ferro Alloy production grew 28% on q-o-q basis and 49% on y-o-y basis.
In Q1FY12, Silicon Manganese price realization increased 26% on q-o-q basis and 18% on y-o-y basis. The Sillicon Managane EBIDTA per tonne was Rs 8,000 per tonne
During the quarter, the sales of ferro alloy was Rs 119.81 crore, up 36% y-o-y and power was Rs 167.01 crore, up by 23% y-o-y. Ferro alloy PBIT zoomed to Rs 21.51 crore from Rs 1.28 crore in Q1FY12 while Power segment PBIT declined by sharp 31% to Rs 51.5 crore as power generated during the quarter was utilized captively by Ferro Alloy segment and thus the profitability was switched from power to Ferro alloys segment.
During the quarter, Orissa grid core sales were 67.8 million units compared to last quarter at 44.44 million units.
The coal costs during the quarter increased 20% on q-o-q basis on back of increased purchases of e-auction coal in its coal mix.
During the quarter, the company's Zambia coalmine started contributing small volumes of sales. The coal of high grade in Zambia coal mine is sold at USD 57 per tonne. Further, Company expects to sell about 3,00,000 -4,00,000 tonnes in FY2013 and about 6,00,000 tonnes in FY2014.
In Q1FY13, the average cost of power generation was Rs 3.8 per unit, higher by Rs 1 per unit compared to Q4FY2012. This is mainly because 64 MW in Orissa started operating in last one and half month during the quarter. The merchant power realization was at Rs 5 per unit during the quarter under review.
In the coming period, the cost of power generation for 64 MW in Orissa is likely to be in the range of Rs 3.55-3.65 per unit depending on the sourcing of coal.
In Andhra Pradesh, the 114 MW coal based power plant is running at PLF of 98% and the 20 MW which is coal and bagasse based power plant is running at 97% PLF.
In Andhra Pradesh the first 150 MW unit is likely to be operational in Q4FY2013.
In Andhra Pradesh, coal mix for power plant is as follows: linkage coal 65%, e-auction coal 25% and only 10% from washery rigids. While in Orissa, coal mix for the power plant is as follows: linkage 50%, washery rigid 40% and e-auction 10%.
The Company is confident of coal availability in Andhra Pradesh as its plants are close to Singareni collieries. Apart from this, the CFBC boiler facility in its plant would benefit from using available surplus washery rigids in Singareni collieries.
Orissa government has listed section11, which is effective from August 1st, 2012.
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