Nava shares trade down after accident halts production at Odisha plant

Shares of ferro alloys manufacturer Nava Ltd traded down 2.9 percent at Rs 395.20 at 10:03am on August 17 after the company halted production of silico manganese at its Odisha plant because of an accident.

The accident took place in the plant’s raw material handling system on August 16. “There has been an accidental damage in the raw material handling system, affecting raw material feeding and other supporting infrastructure. There were no human injuries or casualties due to this accident,” the company said in a regulatory filing.

The company assured investors of insurance coverage for the material damage and business disruption.

Nava’s Odisha ferro alloys plant produces around 4,000 tonnes of silico manganese a month.  According to the company’s estimates, it will take around two months for production at the plant to resume.

Silico manganese, an alloy of silicon, manganese and iron, is used in the production of steel. It is used as a deoxidiser. It helps increase the strength of steel and its resistance to corrosion.

The company reported a 1.68 percent rise in revenue on-year to Rs 1,042.28 crore, while operating profit climbed 3.77 percent to Rs 572.36 crore in the June quarter of FY24. Its net profits, however, plunged 12.58 percent to Rs. 261.06 crore.

In June, the company had announced that its Zambia subsidiary, Maamba Collieries Ltd (MCL), had cleared all its overdue loan installments.

The company’s stock has given a return of 49.01 percent in the last six months.