Nava (513023) Q2 24/25 earnings summary

Executive summary

• Consolidated profit after tax rose 72% year-over-year to INR 3,320 crore in Q2 FY25, driven by strong operational performance in energy and metals, lower interest costs, and a US$10 million dividend from a Singapore subsidiary.

• Board approved a 2:1 stock split to enhance liquidity and broaden shareholder access, pending shareholder approval.

• Key projects advancing include a 300-MW Phase II energy project in Zambia and agricultural expansion into sugar and avocados, with the avocado plantation surpassing 92,400 trees.

• Appointment of Mr. Mwelwa Chibesakunda as Additional and Independent Director for two years, subject to shareholder approval.

Financial highlights

• Q2 FY25 consolidated revenue was INR 9,429 million, down 2% year-over-year; H1 FY25 revenue was INR 212,285 lakh, up from INR 196,426 lakh year-over-year.

• Q2 FY25 EBITDA grew 14.3% to INR 4,562 million (margin 48.4%); H1 FY25 EBITDA up 11.4% to INR 10,821 million.

• Outstanding receivables from ZESCO stand at $197 million, with ongoing monthly payments of $5 million towards arrears.

• Maamba Energy repaid all overdue interest to Nava Bharat Singapore; $25 million of the $89 million principal loan has been repaid.

• Significant cash balance of over INR 1,500 crore, earmarked for growth capital and corporate actions.

Outlook and guidance

• 300-MW Phase II energy project in Zambia is on track for completion by August 2026, with equity deployment beginning December 2024 and spread over two years.

• Avocado plantation project in Zambia to be completed by 2027, targeting 400,000+ plants and global exports, with full yield expected three to four years after planting.

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

• Ongoing exploration of renewable energy and expansion opportunities in Africa, including Ivory Coast, Botswana, and Namibia.