NA VA BHARA T CHAMBERS, RAJ BHA VAN ROAD, HYDERABAD-500082, TELANGANA, INDIA

NBVISECTLI 107 I 2020-21 August 3, 2020

Listing Department National Stock Exchange of India Limited Exchange Plaza, 5th Floor, Plot No.C/1, G Block Bandra Kurla Complex, Bandra (E) MUMBAI - 400 051 NSE Symbol : 'NBVENTURES'

Dept. of Corp.Services BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street MUMBAI - 400 001

Scrip Code: '513023' I 'NBVENTURE'

Dear Sirs,

Sub: Press Release- Unaudited Financial Results for the quarter ended June 30, 2020.

--oOo--

Please find enclosed the press release in connection with announcement of Unaudited Financial Results (Standalone and Consolidated) for the quarter ended June 30, 2020.

Kindly take the same on record and acknowledge the receipt.

Thanking you,

Yours faithfully, forNAVA BHARAT VENTURES LTD.,

VSN Raju Company Secretary & Vice President

Encl : as above.

Nava Bharat Ventures limited Reports its Ql FY21 Financial Results Revenue stood at INR 51 993 Mn and Profit After Tax at INR 954 Mn Q1 FY21 Standalone Operations Achieved Semblance of Normalcy in June 2020

Hyderabad, India~ 3rcJ August 2020: Nava Bharat Ventures ltd, a diversified organisation with interests in power generation, ferro alloys, and coal mining, announced its financial results for the first quarter ended 30th June 2020.

Financial Performance- Consolidated Operations- 01 FY 21

• ^~Revenue from operations came in lower for the quarter as the performance of the domestic power and ferro alloy businesses were significantly impacted by the Covid-19 led lockdown and disruptions in Ql. These factors resulted in a material loss of production & sales.
• o Zambian operations however continued uninterrupted notwithstanding the pandemic and achieved higher Availability and PLF of the power plant along with a spurt in mining revenue and profitability for the quarter. MCL delivered a revenue growth of 15% YoY in Q1 FY21, thereby neutralizing the fall in domestic revenues to an extent in the overall performance.
• ^~Despite the Covid-19 induced disruption, the company was able to maintain its operating profitability. Higher revenue contribution from Zambia and cost optimisation in standalone operations drove better operating margins.
• o Q1 FY21 Adjusted EBITDA increased by 5% YoY to INR 3,919 Mn (INR 3J38 Mn in Q1 FY20)
• o Adjusted EBITDA Margins stood at 65.4% in Q1 FY21 vis-a-vis 48.7% in Q1 FY20
• ^~Q1 FY21 Net Profit stood lower at INR 954 Mn due to higher finance costs, depreciation, and taxes
• o Finance costs increased to INR 1,063 Mn in Q1 FY21, on recognition of fair value adjustment to MCL Borrowings of INR 303 Mn. Adjusting for this, finance costs declined on a YoY basis.
• o Tax rate in Q1 FY21 was higher at 26.3% vis-a-vis 13.7% in Q1 FY 20. Lower tax rate in Q1 FY20 was due to deferred tax restatement at MCL, which resulted in a reversal of INR 228 Mn.
• ^~The 150 MW unit of NBEIL, faced the brunt of weak power demand in the absence of PPA, as the sale of merchant power via power exchanges was unviable owing to the non-remunerative rates. The company is exploring multiple options to operationalize this asset at the earliest.
• ^~Consolidated Debt stood stable at INR 36,551 Mn in Q1 FY21 (INR 36,441 Mn in Q4 FY20)
• o In respect of debt service of March 2020, MCL has discharged the interest payable and has sought deferral of principal instalment from the Lenders.
• ~ Furthermore~ MCL has chalked out a multi-pronged action plan to set right the cash flow mismatch arising out of payment shortfalls by ZESCO. This involves enforcement of certain dispute resolution rights under the PPA~ prospective adjustment of power tariff and simultaneous restructuring of debt of USD 413 Mn.

Ql FY21 Financial Performance- Consolidated

Exchange rate USD= INR 75.9 (Q1 FY21}; INR 69.6 (Q1 FY20)

Revenue and EBITDA excludes discontinued operations

*Adjusted for Forex and MTM (loss)/gain on account of Interest rate swaps (IRSL Provision for expected credit loss, and interest income of outstanding receivabies-

• Forex and MTM (loss)/gain on IRS- Q1FY21: (INR 95 Mn); Q1FY20: (INR 444 Mn); FY20: (INR 801 Mn); FY19: (INR 581 Mn)
• ECL Provision- Q1FY21: (INR 949 Mn); Q1FY20: (INR 93 Mn); FY20: (INR 1,560 Mn); FY19: (INR 275 Mn)
• Interest Income on Outstanding Receivables- Q1FY21: (INR 265 Mn); Q1FY20: Nil; FY20: INR 661 Mn; FY19: INR 571 Mn

Financial Performance -Standalone Operations- 01 FY21

• Standalone Revenues and Profitability declined primarily on account of the plant shutdowns in April 2020, in-!ine with government guidelines. Lm..ver production !ed to an under absorption of fixed costs.
• EBITDA l'v1argins expanded significantly by 537 bps Yo}' to 28.4% in Q1 FY21 despite the Covid-19 induced disruption. Benign raw material prices and operational efficiency continue to aid margins, besides an increase in the O&M Income during the quarter.
• Performance of the ferro alloys and captive power segments improved in June 2020 with the unlocking of the economy. Both the ferro alloys plants are currently operating at healthy utilization levels.
• Standalone Debt stood lower at INR 2,276 Mn, as the company continued its deleveraging efforts

Ql FY21 Financial Performance- Standalone

Revenue and EBITDA excludes discontinued operations

*Other expenses include Forex & MTM (loss)/gain on account of IRS - Q1FY21: INR 0.3 Mn; Q1FY20: (INR 3 Mn); FY20: INR 66 Mn; FY19: INR 174 Mn

Financial Performance- MCl- Ql FY21

• e~~ Revenue from operations witnessed a robust growth of 15% YoY during the quarter as
• o Power Revenues grew by 13% YoY driven by higher PLF and plant availability
• o Growth in Mining revenues (+29% YoY) was led by higher merchant coal shipments (+25% YoY) and better realizations. External coal sales increased given the pent-up demand post the power outages experienced during the period from October- March 2020
• e~~ Q1 FY21 Adjusted EBITDA increased by 12% YoY to USD 46.3 Mn led by the healthy traction in revenues
• e~~ Q1 FY21 Net Profit stood lower at USD 10.1 Mn mainly due to 1) higher finance costs (recognition of fair value adjustment to borrowings of USD "'4 MnL and 2) lower tax outgo in the corresponding quarter of previous year owing to deferred tax restatement which resulted in a reversal of "'USD 3 Mn

Ql FY21- Financial Performance- MCl

*Adjusted for For~x and MTM (loss)/gain on account of Interest rate swaps (IRS), Provision for expected credit loss, and interest income of outstanding receivables-

• Forex and MTM (loss)/gain on IRS- Q1FY21: (USD 1.3 Mn); Q1FY20: (USD 6.3 Mn); FY20: (USD 12.2 Mn); FY19: (USD 10.8 Mn)
• ECl Provision- Q1FY21: (USD 12.5 Mn); Q1FY20: (USD 1.3 Mn); FY20: (USD 22.0 Mn); FY19: (USD 3.9 Mn)
• Interest Income on Outstanding Receivables- Q1FY21: USD 3.5 Mn; Q1FY20: Nil; FY20: USD 9.3 Mn; FY19: USD 8.2 Mn

MCl Receivables Realised (USD Mn)

Cash and debt position as on June 30, 2020 (INR Mn)

Quantitative Table of Operational data (sales in Qty)

About Nava Bharat Ventures limited:

Nava Bharat Ventures Limited is a power focused company with interests in Ferro alloys. The Group has total installed power generation capacity of 434MW in Telangana, AP and Odisha. Nava Bharat is one of the leading Ferro alloy producers in India with about 125,000 MT of Manganese and about 75,000 MT of Chrome Alloy capacities. Nava Bharat has investments and operations through subsidiaries in India, Zambia, Singapore and Malaysia. For more information about the Company and its businesses, please visit us at

For more information, contact

VSN Raju Company Secretary and Vice President Nava Bharat Ventures Tel: +9140 23403501/ +9140 67283333 Chintan Mehta I Mandar Kapse Dickenson World Tel: +91 98675 50004

Safe Harbour: This document may contain forward-looking statements about the company & its subsidiaries, which are based on the beliefs, opinions and expectations of the company's management as the date of this press release and the companies do not assume any obligation to update their forward looking statements if those beliefs, opinions, expectations, or other circumstances should change, These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. Consequently, readers should not place any undue reliance on such forward-looking statements.