Nava Bharat Ventures climbs over 8% as management expects profitability to improve in FY21

Nava Bharat Ventures jumped more than 8 percent intraday on Tuesday after the company's management forecast that the profit will improve in FY21.

At 9:52 am, the shares were trading 5.90 percent higher at Rs 76.30 per share on the NSE. On an intraday basis, the stock price surged 8.33 percent to Rs 77.75.

In an exclusive interview with CNBC-TV18, Executive Director of Nava Bharat Ventures, GRK Prasad, said, "Tariff hike in Zambia is positive for the company and will improve the financial health of the discoms. Expect profitability and power business performance to improve in FY21."

He further added that not only will the receivables from Zambia discom come down but the monthly payments will also be regularised. The stock has been underperforming for the past few months due to its receivables.

In 2016, the company commissioned its first overseas thermal power project of 300MW in Zambia.