NAVA — earnings call
The transcript as filed. Every paragraph is addressable: its link names the page and the position it sits at in the call.
Prepared remarks
Nava Ltd
LIMITED · MODERATOR:
MR. NIKHIL DEVINENI – EXECUTIVE DIRECTOR,
NAVA LIMITED · MR. VSN RAJU – COMPANY SECRETARY, NAVA
MR. K .V.
S.
VITHAL – CHIEF FINANCIAL OFFICER,
MR. VSN RAJU – COMPANY SECRETARY, NAVA
Moderator · Conference Operator
MR. MOHIT KUMAR – ICICI SECURITIES LIMITED Nava Ltd
Ladies and gentlemen, good day, and welcome to the NAVA Limited Q1 FY ‘26
Thank you.
The next question comes from the line of Viraj Mahadevia from MoneyGrow.
Please go ahead.
Viraj Mahadevia
Hi, congratulations on stable results.
If you could elaborate a little bit on the sugar cane or the sugar plant in Zambia, you mentioned the power plant has been set for relocation.
If you can elaborate what that is, why you decided to enter sugar in Zambia, and how this 200 million will be funded, debt and equity?
GRK Prasad
The sugar plant, the co-generation power plant has been in NAVA since 2017.
What we found is, we could actually have them relocated as part of the KSL integrated project to obtain two benefits, one to meet full power requirement of the sugar project and also, to provide an opportunity to sell power in that region, which is very short in terms of power.
That is how the proposal is to relocate the 20 MW power plant to Zambia.
Viraj Mahadevia
Just to understand the full process, the raw cane stocks on the plantation were used as part of the sugar power plant to generate electricity, which is sold back to the grid.
Is that correct?
GRK Prasad
No. This power plant has been idle.
It has not been generating any power in NAVA.
What we are proposing is to have that relocated to Zambia to obtain a better value.
Otherwise, we need to have it scrapped here.
So what, by doing the relocation, we actually are getting a much value upside in terms of capturing the entire WDV value of that sugar plant.
Viraj Mahadevia
Understood.
Nava Ltd
Moderator · Conference Operator
Thank you.
The next question comes from the line of Nidhi Shah from ICICI Securities.
Please go ahead.
Nidhi Shah
Yes, thank you so much for taking my questions.
So my first question is on MEL II.
So, I just wanted to ask what is the CapEx that was done in Q1 and what is the CapEx that remains for this plant?
GRK Prasad
MEL started with Phase II in August ‘24.
Currently, the process is on and we expect that the incremental CapEx that you see is practically on MEL Phase II.
It is about Rs.600 crores.
And the balance works will happen over the next four quarters.
We expect the bulk of that CapEx getting incurred in that period with the balance towards the commissioning phase, which is end of Q1 of FY ‘27.
Nidhi Shah
All right.
My second question is that I recall that 70% of the power, the capacity for Phase II has been tied up.
So, what was the tariff for that and what is your plan for the remaining 30% that is currently untied?
Ashwin Devineni
No, 100% of the power is tied up.
Nidhi Shah
Okay.
So that remaining 30% is another player or is it the same?
Nava Ltd
Moderator · Conference Operator
Thank you.
The next question comes from the line of Shreegopal Kankani from S.G.
Kankani & Associates.
Please go ahead.
Shreegopal Kankani
Good afternoon, sir.
I want to get reconfirmation that 100 MW solar power plant is to be commissioned by July ‘26 and 300 megawatt thermal power plant is to be commissioned by August ‘26.
Ashwin Devineni
Yes, these are correct.
That is the plan.
Shreegopal Kankani
Okay.
And one more question.
In this quarter, the mining operations profitability has come down way over budget.
Are there any major reasons?
K.V.S. Vithal
This is mainly on account of the Forex impact between USD and Zambian Kwacha.
Nava Ltd
Moderator · Conference Operator
Thank you.
The next question comes from the line of Viraj Mahadevia from MoneyGrow.
Please go ahead.
Viraj Mahadevia
What is the net cash on the books for Q1?
Net cash / debt at a consolidated level.
K.V.S. Vithal
Rs.
2,400 crores of Gross cash.
Viraj Mahadevia
Okay.
And how much is the debt?
K. V. S. Vithal
Net cash will be around Rs.1,400 crores.
Viraj Mahadevia
Okay, thank you.
My second question is, is there a Zambia power plant shut down for maintenance planned in Q2?
Ashwin Devineni
Both the units are going to go under shut down in the next two months.
But they are scheduled for maintenance.
Viraj Mahadevia
Right.
Okay, thank you.
Sir, just a suggestion.
It would be helpful if we could get in the investor presentation or a press release a table of sources and uses of funds for the various projects that are underway.
Because we have four projects or five projects underway with different timelines, with different amounts.
It would be really helpful if we could have a summary table highlighting what is the CapEx we are planning to spend over the next two years and what are the sources for that and the timelines for which project.
VSN Raju
Sure, will do.
Viraj Mahadevia
Thank you very much.
All the best.
Moderator · Conference Operator
Thank you.
The next question comes from the line of Vijay P., an Individual Investor.
Please go ahead.
Vijay P.
My first question is regarding the company policy of distributing 25% of the profits to the shareholders as dividend.
Does that policy still hold?
Ashwin Devineni
Yes.
I think our primary dividend policy is between 25% to 30%.
I think the last few years we have been giving 27% - 28% of the standalone profits.
But that being said, that is our standard dividend policy.
Nava Ltd
Moderator · Conference Operator
Thank you.
As there are no further questions from the participants, I now hand the conference over to management for closing comments.
Thank you and over to you, sir.
Ashwin Devineni
Thank you for your insightful questions.
You may reach out on the wider investor platform for any further queries or clarifications.
Thank you.
Moderator · Conference Operator
Thank you.
On behalf of ICICI Securities Limited, that concludes this conference.
Thank you for joining us and you may now disconnect your lines. ____________________________________________________________________________________________________
Note
1.
This document has been edited to improve readability and 2.
Blanks if any, in this transcript represent inaudible or incomprehensible words.
Questions and answers
Moderator · Conference Operator
Thank you, sir.
We will now begin the question-and-answer session.
If you have a question, please press * and 1 on your touch tone telephone and wait for your turn to ask the question.
If you would like to withdraw your request, you may do so by pressing * and 2.
Participants are requested to limit the number of questions to 2 and rejoin the queue for further questions.
Ladies and Gentlemen, let us wait for few moments until the question queue assembles.
The first question comes from the line of Anukool, an individual investor.
Please go ahead.
Anukool
Hi, sir.
Thanks for the opportunity.
Congratulations on receiving the receivables that were due in MEL.
I just wanted to know that since the outstanding receivables are now $85.5 million, how much of this are you expecting for this year, for FY ‘26?
Ashwin Devineni
Yeah, so I think, with regards to arrears, like I have mentioned on the previous calls too, this is a constant discussion process with ZESCO.
We expect to receive the entire $85 million in arrears before the end of this financial year.
Anukool
Okay.
So, would the entire receivables be received this year?
Ashwin Devineni
Yes.
Anukool
Got it.
Another question that I had was, in the last concall you said that the tax exemption will continue for the entire financial year, but this year the tax was there.
Could you just throw some light on the same?
Nava Ltd