Nava (513023) Q1 24/25 earnings summary

Executive summary

• Achieved record quarterly income of INR 12,584 Mn and PBT of INR 5,308 Mn in Q1 FY25, with PAT up 30.1% year-over-year to INR 4,459 Mn, driven by strong Energy and Metals performance.

• Maamba Energy operated at near 100% availability; construction of additional 300 MW plant in Zambia underway, with US$200 Mn long-term debt secured.

• Interim dividend of INR 4.00 per share (200% of face value) declared, payable within statutory limits.

• Maamba Energy and Nava Bharat (Singapore) Pte Ltd began repaying sponsor dues and paid dividends to the parent; US$40.8 Mn repaid since April 2024.

• Appointment of Mr. Nikhil Devineni as Executive Director effective September 2, 2024, for five years, subject to shareholder approval.

Financial highlights

• Consolidated revenue reached INR 12,584 Mn, a 16.7% increase year-over-year; EBITDA rose 9.4% to INR 6,260 Mn, margin at 49.7%.

• PAT increased 30.1% year-over-year to INR 4,459 Mn; finance costs dropped 89.3% to INR 86 Mn.

• Maamba Energy Q1 revenue: INR 201 crore; PBT: INR 68.2 crore; PAT: INR 44.4 crore; operated at 91%+ PLF.

• Free cash flow at group level was about INR 500 crore for Q1.

• Basic EPS (consolidated, continuing operations) for the quarter was ₹24.53, up from ₹17.92 year-over-year.

Outlook and guidance

• 300 MW Maamba expansion has a 20-year PPA, offtake to start two years from now; US$400 Mn capital outlay planned.

• Maamba Energy expected to operate above 70% PLF for the year.

• Avocado plantation expanded to over 90,000 trees, targeting 100,000 in the next phase; revenue expected to be $3-4 million in next financial year, with peak from 2027-2028.

• No large CapEx planned for Indian operations; overseas CapEx focused on Maamba expansion, avocado, and exploration in Ivory Coast and lithium assets.

• Management confident in recoverability of significant overdue receivables from Maamba Energy Limited, supported by a sovereign guarantee and favorable arbitration outcome.