Nava Bharat Ventures gains over 12% in two sessions
31/12/2019 par Titicopper 0 RECOMMANDER Nava Bharat Ventures gains over 12% in two sessions
By Capital Market | Last Updated at December 31 2019 11:31 IST
Nava Bharat Ventures reportedly expects profitability to improve in FY2021.
The scrip surged 4.37%, in an otherwise flat market, to trade at Rs 75.25. It has traded in the range of Rs 74.75 and Rs 77.55 so far during the day.
The counter struck volume of 23,006 shares on the BSE, which was nearly three times its week average trading volume of 8,023 shares.
Zambia's state power firm Zesco on Friday, 28 December 2019, said it will increase the price of electricity by an average 113% for all customers beginning next month. Zambia's Energy Regulation Board allowed Zesco to increase electricity tariffs by more than 200% for residential customers consuming the least amount of power.
Nava Bharat Ventures' Zambian step down subsidiary, Maamba Collieries, operates an integrated 300 MW coal fired power plant and selling power under a long term availability based power purchase agreement with Zesco, the local utility.
Nava Bharat's executive director, GRK Prasad, was quoted by the media saying on Monday that the tariff hike in Zambia is positive for the company and the firm sees the financial health of the Zambia discom improving.
Prasad expects receivables from the Zambian subsidiary to come down, which currently stands at $200 million. He also expects monthly payments from the Zambia discom to regularise going forward.
As per the company's annual report 2018-19, Nava Bharat Ventures holds 65% stake in Maamba Collieries.
Zesco, while making part payments monthly, has delayed payments for power purchase resulting in accumulation of receivables. These receivables are fully secured against Sovereign Guarantee of the Government of Zambia (GRZ).
In two trading sessions, the Nava Bharat Ventures stock has gained 12.39% to currently trade at Rs 75.25 from a recent closing low of Rs 66.95 recorded on 27 December 2019.
Mer 9 Mai 2018 21:52