NAVA LIMITED — Q4 FY26

Nava Limited Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=esmn11PMb2I Published: 1d ago

0:02 2 seconds Good evening ladies and gentlemen. I am Adri moderator for the conference call. 0:06 6 seconds Welcome to Nawa Limited Q4 FY26 earnings conference call. As a reminder, all participants will be in listenonly mode 0:15 15 seconds and there will be an opportunity for you to ask questions after the presentation concludes. Should you need any assistance during the conference call, 0:23 23 seconds please signal an operator by pressing star and then zero on your touchtone telephone. Please note this conference is recorded. 0:31 31 seconds I would now like to hand over the floor to Miss Nidi Sha. Thank you and over to you ma'am. 0:37 37 seconds Yeah, thank you so much Margari. Uh good evening. On the behalf of IPSS securities, I welcome you all to the Q4 and FI26 earnings call of Nawa Limited. 0:47 47 seconds Today we have with us from the management Mr. Ashin Dani, managing director and CF CEO, Mr. Mikl Dmani, 0:55 55 seconds executive director, Mrs. GK Prasad Executive Director, Mr. Bish Navasa, Chief Financial Officer, Mr. Van Raju, 1:04 1 minute, 4 seconds company secretary and Miss Lisa from corporate communications. You will begin with opening remarks from the management which will be followed by a Q&A. Over to you, sir. 1:16 1 minute, 16 seconds Thank you very much. Good afternoon everyone and thank you for joining us today. FY26 1:24 1 minute, 24 seconds has been a strong and important year for NAVA both from an operational and strategic perspective. Our business continued to perform steadily across 1:32 1 minute, 32 seconds geographies supported by disciplined execution, stable operations and improving efficiencies. 1:39 1 minute, 39 seconds At the standalone level, we reported 116% increase in profit after tax to 911 1:49 1 minute, 49 seconds cr rupees, marking one of the strongest performances in the company's history. 1:54 1 minute, 54 seconds The growth was primarily supported by healthy upstream dividend flows from our overseas investments and back proceeds 2:02 2 minutes, 2 seconds received during the year. We also witnessed one of our strongest years of cash generation supported by these 2:09 2 minutes, 9 seconds inflows alongside healthy operational cash flows further strengthening our liquidity and balance sheet position. 2:18 2 minutes, 18 seconds On the consolidated side, profitability was impacted by a certain accountingled tax adjustments at MEAL which is Mamba 2:28 2 minutes, 28 seconds Energy Limited relating to deferred tax movements. 2:33 2 minutes, 33 seconds To provide some context on this, the increase in deferred tax expenses, which 2:39 2 minutes, 39 seconds is a non-cash item, was primarily driven by approximately 32% appreciation of the 2:46 2 minutes, 46 seconds Zambian quatcha, resulting in unrealized foreign exchange gains. 2:53 2 minutes, 53 seconds These unrealized gains create a timing difference between how income is recognized in the financial statements and how it is treated for tax purposes. 3:05 3 minutes, 5 seconds As a result, a deferred tax liability is recorded. 3:10 3 minutes, 10 seconds However, the underlying operational and cash performance of the business remains healthy and consistent. 3:18 3 minutes, 18 seconds And on this, it is important to note the following. And there are four points on this uh deferred tax uh provision. 3:25 3 minutes, 25 seconds One, non-cash in nature. This deferred tax does not involve any immediate cash 3:34 3 minutes, 34 seconds flow cash outflow and is purely an accounting adjustment. The second is it's linked to the exchange rate 3:41 3 minutes, 41 seconds movement. The deferred tax position will be reassessed during every reporting period based on the outstanding loan 3:50 3 minutes, 50 seconds balances and the prevailing exchange rate. Third, that it's temporary and reversible. Since the underlying driver 3:59 3 minutes, 59 seconds is foreign exchange fluctuation, the impact can be temporary. And as exchange rates 4:08 4 minutes, 8 seconds stabilize or move in opposite direction, the deferred tax liability is expected to reverse over time and it has no 4:15 4 minutes, 15 seconds impact on the core performance. This movement should be viewed as a technical accounting adjustment and not as an 4:23 4 minutes, 23 seconds indicator of the company's operational performance or cash position. That being said, overall we believe today NAVA is 4:33 4 minutes, 33 seconds in a stronger position operationally, financially, and strategically with stable core businesses, healthy liquid 4:41 4 minutes, 41 seconds liquidity, improving cash flows, and multiple long-term growth drivers in place. 4:50 4 minutes, 50 seconds A testament to this is the dividend declared for the year at 8 rupees 50 4:56 4 minutes, 56 seconds pisa per share which is the highest in the company's history. With that overview, I would now like to hand over 5:04 5 minutes, 4 seconds the call for a detailed discussion on the financial and operational performance for the year. Thank you very much. 5:17 5 minutes, 17 seconds Thank you sir. Ladies and gentlemen, we will now begin the question and answer session. 5:23 5 minutes, 23 seconds If you have a question, please press star and one on a telephone keypad and wait for your turn to ask the question. 5:30 5 minutes, 30 seconds If you would like to withdraw your request, you may do so by pressing star and then one again. 5:41 5 minutes, 41 seconds The first question comes from Aditan from PCS security. Please go ahead. Hi sir, am I audible? 5:50 5 minutes, 50 seconds Yes. Yeah. So I had a few questions. 5:54 5 minutes, 54 seconds Yeah. The first one is the status of the projects of the 100 megawatt solar project and the 300 megawatt thermal project. Sir. 6:05 6 minutes, 5 seconds Yeah. So the solar project is due to be at least commissioning is supposed to commence in the month of July this year 2026. 6:15 6 minutes, 15 seconds And uh the phase 2 which is a 300 megawatt expansion at meal is uh uh to 6:24 6 minutes, 24 seconds be commissioned during the early part of January 2027. 6:30 6 minutes, 30 seconds Okay sir. And what is the status for the avocado and the sugar complex? 6:37 6 minutes, 37 seconds Well, on the avocado front, um, in fact, this year we've had our first commercial 6:43 6 minutes, 43 seconds harvest for about 150 tons. Um, as we speak, the rest of the growth in the 6:51 6 minutes, 51 seconds last division, division D is taking place. Uh, we expect that to be complete towards the end of this financial year. 6:58 6 minutes, 58 seconds Uh, post which in terms of plantations, uh, we would be fully complete with it. 7:04 7 minutes, 4 seconds Um however in terms of uh commercial sale we are expecting next year there would be a harvest sale of about 7:12 7 minutes, 12 seconds thousand tons and uh going from there every year the quantity would double in nature up until 2034. 7:22 7 minutes, 22 seconds Answer one last question sir. What are the domestic realizations for power? 7:31 7 minutes, 31 seconds Power for the current year we estimated it around 5 rupees 55 say. Okay. Okay. Thank you sir. 7:42 7 minutes, 42 seconds Thank you sir. 7:44 7 minutes, 44 seconds Participants are kindly requested to ask two questions in the initial round and may join the queue for more questions. 7:51 7 minutes, 51 seconds The next question comes from Sakit Kapoor from Kapoor and Co. Please go ahead. 7:58 7 minutes, 58 seconds Yeah. Namaskar sir. Hope I'm audible. Hello. Yes. Yes, you are audible. 8:07 8 minutes, 7 seconds Yeah. Yes sir. Sir, uh if you could just explain to us the uh allowance of expected credit loss uh that we have 8:15 8 minutes, 15 seconds factored uh of 20 cr uh for this quarter and uh an amount of rupees 137 cr for 8:23 8 minutes, 23 seconds the entire year and sir second yeah please 8:31 8 minutes, 31 seconds uh it is on account of uh just dues which were outstanding as on 31st March 25 we have received during the year 8:39 8 minutes, 39 seconds about like 15.5 million on that the made in the previous years were reversed. 8:50 8 minutes, 50 seconds Okay. So the uh so these are uh these are gains that we have booked for uh for the current year. 8:58 8 minutes, 58 seconds Yes. 9:00 9 minutes And sir going ahead uh will this be any recurrence of the same or how much more will be reversed back going ahead? We 9:08 9 minutes, 8 seconds are left with 1.3 million which will be reversed during the next. 9:13 9 minutes, 13 seconds Sir, if you could just give uh some understanding of how the core uh business aspect in terms of the different verticals are behaving. This 9:22 9 minutes, 22 seconds the silicico manganese these feroh silicon and the type of uh the expected 9:28 9 minutes, 28 seconds uh realizations uh going ahead and such uh as you mentioned about the cash flow 9:36 9 minutes, 36 seconds from the subsidiaries and the buyback program. what should one anticipate uh uh going ahead and how are the uh 9:44 9 minutes, 44 seconds power realizations going to shape up? I think so in your no in your presentation you did alluded to the fact of uh lower 9:53 9 minutes, 53 seconds reduced realizations for both ferro alloys as well as uh the Indian uh energy increase fixed cost which was 10:01 10 minutes, 1 second mentioned in the financial highlight. So if you could just give us the uh in brief the setup of the business environment for for all the verticals 10:10 10 minutes, 10 seconds and going ahead what what what should we uh anticipate? 10:16 10 minutes, 16 seconds So that's a very broad question but let me try to answer it the best I can. Um I think uh first with respect to the 10:24 10 minutes, 24 seconds fereralise vertical um yes uh there were many pricing pressures on account of two major uh 10:32 10 minutes, 32 seconds possibilities. One was the fact that India now produces about 4 million tons of manganese alloys out of which 10:39 10 minutes, 39 seconds approximately 1 million is slated for export and the main export destinations are Europe and Middle East. So over the 10:47 10 minutes, 47 seconds course of the last year, the European Union has imposed safeguard duties against Indian imports into the country. 10:55 10 minutes, 55 seconds Um that coupled with the geopolitical situation going on in the Middle East has definitely put a strain on Indian 11:02 11 minutes, 2 seconds exports and as a result of that we are seeing a lot of that material being dumped in the domestic market which is 11:09 11 minutes, 9 seconds essentially causing uh the prices to come down. However, I think when it comes to NAVA, uh we are fairly well 11:17 11 minutes, 17 seconds insulated from these volatilities because of one uh we have a long-term arrangement, a yearly contract with the 11:24 11 minutes, 24 seconds two major Japanese mills which essentially accounts for 40% of our production. In addition to that, we also 11:32 11 minutes, 32 seconds have quarterly fixed pace contracts with some of the big steel producers, private steel producers in India, which again 11:40 11 minutes, 40 seconds accounts for another 40 to 50%. So our level of volatility or exposure to the spot market is only to the extent of 10 11:49 11 minutes, 49 seconds to 15% per se. So going forward, I do see that there should be a slight improvement even in terms of the metals vertical. 12:00 12 minutes Now I think coming to the power side um you know this year is definitely in 12:08 12 minutes, 8 seconds terms of our entire cost structure it would look very different from the preceding year because of the drop in 12:14 12 minutes, 14 seconds coal prices by Singri whom we are um essentially drawing 100% of our coal from in the Talangana operations. So 12:24 12 minutes, 24 seconds this allows us to essentially have a better cost structure and be able to participate in a lot of these bilateral 12:32 12 minutes, 32 seconds tenders even during the non- peak season which was not the case earlier. So as a result of this this year onwards we're 12:39 12 minutes, 39 seconds going to be looking at a fairly better overall PLF. 12:47 12 minutes, 47 seconds Sir, if you could just uh on on this part, if you could just dwell further. 12:52 12 minutes, 52 seconds Uh you are we are expecting lower coal prices. Uh the current year I I missed. 12:59 12 minutes, 59 seconds I'm very sorry to interrupt. In the interest of time, may I request you to rejoin? 13:03 13 minutes, 3 seconds Yes, ma'am. I'm joining. Yeah, I'm joining the queue. It is only what sir has told. I I could not get his point. 13:08 13 minutes, 8 seconds So, I'm joining the queue. No issues with that. Thank you. Thank you. Please clarify once again. 13:17 13 minutes, 17 seconds I didn't get your question. I'm sorry. 13:19 13 minutes, 19 seconds Can you repeat that? Sir, only for the coal prices, I could not get the correlations you were trying to explain for the singing coal mine. If 13:26 13 minutes, 26 seconds you could just repeat what you said and I'll join the queue. 13:32 13 minutes, 32 seconds Our offtake for coal which is the sole raw material for power generation in Telangana is coming from Singi always. 13:41 13 minutes, 41 seconds Okay. Over the course of the last year, sometime in September of 2025, they have decreased their coal prices to 13:50 13 minutes, 50 seconds be more in line with the international market. And uh this essentially has had a big impact on our operations where now 13:58 13 minutes, 58 seconds we are able to operate year round with a higher PLS and gain more contracts. 14:06 14 minutes, 6 seconds Right. I'll join the queue sir. Thank you. 14:11 14 minutes, 11 seconds Thank you sir. Participants are kindly requested to ask two question in initial round and may join the queue for more questions. 14:19 14 minutes, 19 seconds The next question comes from Vira Mahadeva from money grow. Please go ahead. 14:26 14 minutes, 26 seconds Hi Ashin. Uh one is the financial assets and investments of 1347 crores is that 14:34 14 minutes, 34 seconds cashlike in nature i.e. Is it in debt products, NCDs, etc. like it was the prior year? And what is the planned use for this? 14:45 14 minutes, 45 seconds The major investments are in uh liquid mutual funds and then dead products, right? 14:52 14 minutes, 52 seconds And sorry, what is the planned use for this money going forward? 14:57 14 minutes, 57 seconds Yeah. So I think as you're aware now we have the agro projects in the pipeline uh with both uh the avocado and the 15:05 15 minutes, 5 seconds sugar which are to be funded essentially from the corpus in the Indian accounts. 15:12 15 minutes, 12 seconds Understood. So what is the equity contribution still pending for all these new projects coming on stream and how 15:20 15 minutes, 20 seconds much incremental debt is likely to be taken to complete all these projects. So delta on equity and delta on debt. 15:28 15 minutes, 28 seconds So right now I think um if you look at the total commitment I'm talking about uh for the group as such the total 15:35 15 minutes, 35 seconds commitment is uh about 30 million in terms of equity. Um and in 15:43 15 minutes, 43 seconds terms of the agri side debt we're looking at about 100 million. And uh for the uh uh for Mamba we've already taken 15:53 15 minutes, 53 seconds on the debt uh for the phase 2 and I think for the solar uh 30 million is pending. So that is pending. These are 16:01 16 minutes, 1 second for existing projects that we're currently implementing you know but as you kind of know you know we're always looking at other projects that uh you 16:10 16 minutes, 10 seconds know uh could uh probably shape up during the course of the year. So those are not considered. 16:17 16 minutes, 17 seconds Understood. So if I just just to clarify so 100 from agree on debt remaining to be taken and 30 on solar debt remaining 16:25 16 minutes, 25 seconds to be taken. So 130 million incremental debt and 130 million equity contribution into agri still remaining 16:33 16 minutes, 33 seconds not into agri. So in agri it is about 100 and then we have some equity 16:40 16 minutes, 40 seconds contribution that needs to go into mamba. Sorry um the mamba is about 17.5 million. 16:47 16 minutes, 47 seconds Not solar. Solar we made our entire equity contribution. I'm talking about for phase two. We have a last trans that needs to go in and the remainder of that 16:56 16 minutes, 56 seconds is for the agree which includes the sugar and the avocado. 17:00 17 minutes Understood. Very clearly. I'll come back for more questions. Thank you. Thanks. 17:05 17 minutes, 5 seconds Thank you sir. The next question comes from Abin Nalawadi from ICIA Securities. Please go ahead. 17:12 17 minutes, 12 seconds Yeah sir. Thanks for the opportunity. My first question is what is the cost of 100 megawatt solar uh plant and what is the tariff? 17:21 17 minutes, 21 seconds Yeah. Yeah. I mean I'm not going to go into the cost of the solar plant now. Um but in terms of the tariff 7.8 it's 7.8 US cents. 17:35 17 minutes, 35 seconds 7.8 sorry 7.8 US cents. 17:40 17 minutes, 40 seconds sa uh second question is on NBIL what is the revenue a bit part for FI26 17:50 17 minutes, 50 seconds I'm sorry revenue and profit after tax 17:57 17 minutes, 57 seconds is 442 cr and then PPD is 80 cr is 59 but you didn't get the part number 18:06 18 minutes, 6 seconds is 59 Understood. Thank you sir. 18:13 18 minutes, 13 seconds Thank you sir. The next question comes from Jalak Jane from Chhattiskar Investment Limited. Please go ahead. 18:21 18 minutes, 21 seconds Hello. I'm audible. 18:23 18 minutes, 23 seconds Yes sir. Hello. Yeah. So my question is how is the situation in Zambia currently and due to West Asia crisis do we have 18:32 18 minutes, 32 seconds any power re disceptions in Zambia and are there any problems in receiving the payment from this com? 18:41 18 minutes, 41 seconds Oh so the the situation in Zambia is is is fine. Um the only change there is Zambia 18:48 18 minutes, 48 seconds is going into elections. Elections are due to be held in the month of August. 18:54 18 minutes, 54 seconds Um there I mean the power situation is fine and with currently what's happening 19:01 19 minutes, 1 second um there are no major disruptions. I think the only disruptions is what the rest of the world is facing which is 19:07 19 minutes, 7 seconds increase in fuel prices and with regards to receivables we've been getting it on time. 19:17 19 minutes, 17 seconds Okay. And my second question is due to the West Asia crisis are we anticipating any increase in supply of coal in Zambia 19:26 19 minutes, 26 seconds from mines from sorry so we we have our own captive mind there 19:35 19 minutes, 35 seconds right so it's a mindmouth power plant so we're not dependent on import of coal 19:43 19 minutes, 43 seconds so so are we thinking it to sell even more like this is all like as their demand is rising. 19:51 19 minutes, 51 seconds No, we we have a we have a large customer base. Our sales for our coal business is fairly healthy. Um and 19:59 19 minutes, 59 seconds definitely yeah, if opportunities arise and there is a good market, we will definitely explore it. 20:06 20 minutes, 6 seconds Okay. Thank you. 20:09 20 minutes, 9 seconds Thank you ma'am. Dear participants, if you have any questions, please press star and one on a telephone keypad. 20:18 20 minutes, 18 seconds The next question comes from Shakit Kapoor from Kapoor and Co. Please go ahead. 20:23 20 minutes, 23 seconds Yeah, thank you for the opportunity again sir. when when we look at our AITA margin uh uh ex excluding of I think so 20:31 20 minutes, 31 seconds the oneoff also before that the AITA margin for the quarter has declined on a consolidated basis from uh uh Q on Q 20:40 20 minutes, 40 seconds basis sir so what what should be the number that we should factor in for the uh current financial year and also with 20:49 20 minutes, 49 seconds in terms of our uh uh the subsidiary meal Jambia there also So we have seen 20:55 20 minutes, 55 seconds the uh the the PLF uh on Q on Q basis was down. So how should we what should 21:03 21 minutes, 3 seconds be penciling in sir in terms of how the trajectory for the AITA margin uh is likely going to trend going ahead that is the first question. 21:13 21 minutes, 13 seconds Just give me give us a second. 21:54 21 minutes, 54 seconds Yeah. So I think um just to I just wanted to get the numbers before I answered your question. So in terms of the EITA delta it's because the last 22:03 22 minutes, 3 seconds quarter actually there was uh other income. So uh hence the EITA was slightly higher. Uh sir I'm talking Q sorry sir I'm talking 22:12 22 minutes, 12 seconds about the Q part only for quarter 3 December quarter versus the March quarter if that comparison works sir. 22:20 22 minutes, 20 seconds Yes. 22:21 22 minutes, 21 seconds Yes. There was there was a decrease in the other income by 18 cr in Q4 right and the other reasons are Q4 Mama energy 22:30 22 minutes, 30 seconds power plant had a planned shutdown because of which there is an increase in the manufacturing expenses and replace and maintenance 22:38 22 minutes, 38 seconds these are the major reasons for decrease in okay since then for for we as investors what should we pensioning in in terms of 22:46 22 minutes, 46 seconds a steady state uh EITA margin trajectory for for the for the foreseeable future. 22:55 22 minutes, 55 seconds And sir, second question was also with with respect to the volume uh in terms of the silicon and the ferro alloys uh 23:02 23 minutes, 2 seconds uh what kind of incremental volume can we expect uh in terms of production and sales for the next year if if an 23:12 23 minutes, 12 seconds understanding could be said. These two these two were my points 40,000. 23:24 23 minutes, 24 seconds So with with regards to you know what can you expect? I firstly I don't think you should be looking at quarter on quarter. Uh there are a lot of variables 23:31 23 minutes, 31 seconds and so on. So I think you should look at basically annual performance um and base your forecast on that and 23:39 23 minutes, 39 seconds then no sir for the year as a whole what should the pensioning in in terms of the AITA margin trajectory sir then for the current year for 26 27 23:48 23 minutes, 48 seconds it is very it's very dynamic right because on a year-on-year basis you have various things coming up we have phase two coming up we have tax holidays that 23:57 23 minutes, 57 seconds we are losing for phase one so it's very hard for us today to give you an exact number until we have we get everything 24:04 24 minutes, 4 seconds up and running and everything is as usual. Okay. 24:08 24 minutes, 8 seconds Even a trajectory sir you you must be have you must have worked out on a trajectory of say 35 to 40% or 40 to 45% 24:15 24 minutes, 15 seconds wherein we should be uh in that sailing through that period with the type of adjustments which you have just talked about. 24:22 24 minutes, 22 seconds Yeah. So you can assume 35 to 40%. 24:26 24 minutes, 26 seconds Okay. And now for the volume increase in terms of uh uh the the feroh and the silicico manganesees part of the story 24:34 24 minutes, 34 seconds what are the utilization levels and any incremental objects that we may anticipate for the current year. 24:40 24 minutes, 40 seconds See with regard to federal light production uh the total production will be on the same line lines like last year because the visa plant was under shutdown for first quarter of the year. 24:52 24 minutes, 52 seconds So uh the uh sales quantity will remain like in the previous year. 24:58 24 minutes, 58 seconds I think in total we're looking at about 130,000 ts for the next year. 25:04 25 minutes, 4 seconds Okay. So this time we did 134 for silico and uh feroh was 8,000. 25:12 25 minutes, 12 seconds We've actually discontinued feroh silicon because the market for silo maganesees is more favorable at the moment. Um so I'm just talking about silo maganesees being at 130,000. 25:23 25 minutes, 23 seconds Okay. So that will be flat that FI26 we did 134. I joined the ma'am. Definitely. 25:31 25 minutes, 31 seconds Yes ma'am. Thank you ma'am. 25:35 25 minutes, 35 seconds The next question comes from Sai Shreas from Scientific Investing. Please go ahead. Uh good evening sir. Am I audible? 25:44 25 minutes, 44 seconds Yes. 25:46 25 minutes, 46 seconds Uh sir. Uh thank you for the opportunity. So my first question is can you please help us understand why is there a sudden jump in the employee costs year over year? 25:58 25 minutes, 58 seconds Um this is like partly on account of like ESOPs 26:05 26 minutes, 5 seconds like we are giving RS to employees to some extent on account of this labor code and normal uh uh wage hike like to 26:14 26 minutes, 14 seconds the employees we are giving Okay. So sir uh will this be the sustainable uh cost or is there any expected increase? 26:26 26 minutes, 26 seconds It will be like sustainable subject to like increment usually give to the employers. 26:32 26 minutes, 32 seconds Okay sir. And my uh next question is uh sir can you please help us understand what is the revenue potential from the 26:38 26 minutes, 38 seconds agrochemical agro sectors from the avocado as well as the sugar. 26:46 26 minutes, 46 seconds Uh with regard to avocado when it is in peak uh the expected revenue is uh 22 million. 26:54 26 minutes, 54 seconds Uh uh is it is it yearly 22 million and from when will it start contributing sir? So like already the commercial 27:02 27 minutes, 2 seconds operations has begun like we start harvesting some fruit but it will be incremental the revenue will uh will be 27:10 27 minutes, 10 seconds like it is not stat like equal over the years by the time uh it reaches peak uh the 20 uh the total revenue would be 22 million. 27:20 27 minutes, 20 seconds Okay. Uh the peak revenue is 22 million and from when will this commercialization start? Is it from FI 27:26 27 minutes, 26 seconds 27 or 28 sir? So I think the peak we can look at post um 2032 but until then 27:34 27 minutes, 34 seconds you're going to definitely have incremental revenues flowing in every year. Okay. Okay. Thank you sir. 27:40 27 minutes, 40 seconds We just to add we've already started selling fruit. It it's just commenced. 27:45 27 minutes, 45 seconds So it starts in a small way and then slowly picks up as the trees grow. 27:52 27 minutes, 52 seconds Thank you sir. The next question comes from Miraj Mahadeva from Manigrow. Please go ahead. 27:59 27 minutes, 59 seconds Hello. Can you hear me? Yes. 28:03 28 minutes, 3 seconds Yeah. Uh Ashan, uh the way I look at your financials, there seems to be a bit of a structural crosscurrency issue, right? Historically, you've had the 28:12 28 minutes, 12 seconds benefit of uh dollar billing in Zambia uh and dollar weakening against the rupee and the local currency also 28:21 28 minutes, 21 seconds weakening against the rupee. So higher revenues and lower costs that seems to have swapped more recently which is why you've seen massive cost escalations and 28:29 28 minutes, 29 seconds a jump particularly in employees. Is that the right understanding? And and secondly, if that is the case then it's 28:36 28 minutes, 36 seconds probably better to build in some natural hedge on currency where local employees are paid there in dollars since your revenue are in dollars. 28:46 28 minutes, 46 seconds Yeah. So um you know it's a good thing by the way that the Zambian watch has appreciated because uh that means that 28:52 28 minutes, 52 seconds the country is doing well and and I I also think that this also ensures that we get paid on time. Um you know the GDP 29:01 29 minutes, 1 second is growing very healthily. What can happen? 29:05 29 minutes, 5 seconds Yeah. In your cross currency translation to INR you take a hit you know. 29:09 29 minutes, 9 seconds Yes. Well the thing is we um exactly and even in Zambia we have to report in quatcha. So once it the dollar balance 29:16 29 minutes, 16 seconds sheet gets converted to quatcha you have these issues that sometimes are notional in nature. In terms of employees 29:25 29 minutes, 25 seconds um you know the Zambian government passed a law or a statutory instrument 29:31 29 minutes, 31 seconds uh late last year where it uh said that all local employees local contractors 29:37 29 minutes, 37 seconds and transactions have to be transacted in Zambian quatcha. So you can't have an employee there getting paid in dollars. 29:46 29 minutes, 46 seconds Um understood. 29:47 29 minutes, 47 seconds I mean this used to benefit us before when the quatcha was appreciating but now it is but you know it's kind of become stable. Um I think it's 29:56 29 minutes, 56 seconds appreciated uh extensively in a very uh short period of time. We may see some 30:03 30 minutes, 3 seconds correction later. Um but but I I look at this as a good thing. 30:08 30 minutes, 8 seconds Yeah. But I guess then the next question is can you change your PPAs from dollars to quatcha at the current rate because you know it's like for like hedge right 30:16 30 minutes, 16 seconds right now you're on the wrong side of the currency equation in terms of your INR financials. So the rupee continues to weaken and the quatcha continues to 30:25 30 minutes, 25 seconds strengthen then you'll continue taking a hit on your consol P&L. 30:31 30 minutes, 31 seconds Yeah. See the the quatcha appreciation like we from cash flow point of view are not affected at all. This only affects the tax position. 30:44 30 minutes, 44 seconds So and trust me you you want to keep the PPA as uh USD. In fact when the the law was passed or the statutory instrument 30:52 30 minutes, 52 seconds was passed to move all local transactions they actually uh ring fenced power assets and so on where they 30:59 30 minutes, 59 seconds can continue at USD. So all our expenses on and m expenses everything are USD 31:05 31 minutes, 5 seconds based. So apart from just tax purposes because we have to convert our balance sheet from USD to quatcha there really is no effect of this appreciation. 31:15 31 minutes, 15 seconds But why not on your employee costs? 31:17 31 minutes, 17 seconds Because the quatcha cost of your employees translated to INR is getting more and more expensive because the quatcha is strengthening 31:25 31 minutes, 25 seconds and INR is weakening. But that is hedged with my coal sales right my coal sales today is in quasha now. So while the 31:34 31 minutes, 34 seconds cost of the employees is kind of going up to a slight extent so is the colesale value is that is that is that 31:42 31 minutes, 42 seconds the revenue generated from colesale so the delta is hardly anything and in terms of my core employees there it's not much 31:49 31 minutes, 49 seconds understood very helpful uh sorry my next question is um the 10% that's remaining of the by the way congratulations on 31:58 31 minutes, 58 seconds collecting 90% but the 10% that's remaining uh when is that likely to be due from ZesQL over the course of FY27? 32:08 32 minutes, 8 seconds Yes. Yes, definitely. I I I say in the next 6 months we should get it. Okay. 32:15 32 minutes, 15 seconds The next question comes from Jalak Chain from Chhattishkar Investment Limited. Please go ahead. 32:21 32 minutes, 21 seconds Yeah. Hello. Thank you for taking my question. My question is can you please shed some light on the mining activities 32:29 32 minutes, 29 seconds in Africa like uh Mr and lithium. 32:36 32 minutes, 36 seconds So I think with respect to manganesees we are are focused on ivory course and 32:43 32 minutes, 43 seconds um the second mine which has been allocated to us which is 360 kilometers. 32:49 32 minutes, 49 seconds In fact, we have just completed the exploration works recently in a two square kilometer area and we have uh 32:58 32 minutes, 58 seconds found promising results where we are able to take this forward for towards an exploitation permit. That's what we are 33:05 33 minutes, 5 seconds currently working on and I think uh hopefully in the next one year we should be able to achieve that. 33:12 33 minutes, 12 seconds Yeah. And on the the the lithium front um as we had informed before exploration 33:19 33 minutes, 19 seconds was was underway. Uh we did although the explor initial exploration results and certain paths were fairly positive. We 33:28 33 minutes, 28 seconds did come across a certain obstacle where there was another company uh once after seeing our activity had claimed some of 33:35 33 minutes, 35 seconds that area uh for a different license a tin license. So that is currently under review by the ministry. uh and what we 33:43 33 minutes, 43 seconds have indicated is until we get clarity and clearance uh we won't proceed further. So it's currently underway but it's under review by the ministry to overcome the search. 33:55 33 minutes, 55 seconds Okay. Thank you. 33:58 33 minutes, 58 seconds Thank you ma'am. The next question comes from Keta Jooshi from Neby Assets Management. Please go ahead. Hello. 34:06 34 minutes, 6 seconds Hi. Um and am I audible? Yes sir. Yes sir. 34:14 34 minutes, 14 seconds Uh so thank you for the opportunity. Uh what is uh my question is what is expected incremental revenue and ITA 34:23 34 minutes, 23 seconds from Mamba solar power project 100 megawatt the 34:35 34 minutes, 35 seconds solar top line expected is 20 22 to 22 million and then bottom line expected is 6 to 7 million. 34:43 34 minutes, 43 seconds Okay. Okay. Thank you so much. 34:49 34 minutes, 49 seconds Thank you ma'am. The next question comes from Sit Kapoor from Kapoor and Co. Please go ahead. 34:55 34 minutes, 55 seconds Yes sir. Only a uh an understanding of how the power realizations per unit would shape up I think. So you have 35:02 35 minutes, 2 seconds alluded to the fact of softening of the Indian energy business. So what should be the outlook for the on on the tariff 35:11 35 minutes, 11 seconds uh front? And uh and second question was sir again pertaining to the volume for the pharaoh uh silicon part wherein you 35:19 35 minutes, 19 seconds mentioned 130. So we we will be flattish for this year sir since last year was 134 the sales number for silicico manganese. 35:30 35 minutes, 30 seconds In terms of the production volumes we are expecting a slight uptick in it but uh with respect to pricing again that's 35:37 35 minutes, 37 seconds an extremely fluid situation. month on month it does vary but I don't see any reason for it to fall uh compared to the 35:46 35 minutes, 46 seconds preceding year as of now and for the power part s what should be anticipated and uh in terms of the realization 35:54 35 minutes, 54 seconds power I think on the on the power side you know although India has reached uh the 36:02 36 minutes, 2 seconds expected peak demand is supposed to touch 277 gaw uh you are also seeing a huge capacity addition in the form of 36:09 36 minutes, 9 seconds renewable energy which is serving as a deterrent for prices going up. Um so if you just look at the exchange year on 36:18 36 minutes, 18 seconds year there's been a 13% drop. So our strategy has been more to rely upon the bilateral contracts where the net 36:27 36 minutes, 27 seconds realizations are fairing better than what it is on the spot. So given the situation I think we can expect somewhere close to 550. 36:38 36 minutes, 38 seconds Okay. Thank you. 5 rupees 50. 36:46 36 minutes, 46 seconds Thank you sir. The next question comes from Van Sarda from Nirmal Bank Securities. Please go ahead. 36:55 36 minutes, 55 seconds Am I audible? Yes sir. 36:59 36 minutes, 59 seconds Uh first of all congratulations to the management for a good financial year. My question is with respect to volume like you said uh the production would be in 37:09 37 minutes, 9 seconds this a bit high but over a long-term horizon 3 to 5 years of time frame how we can see the volume growth in our fereralized business. 37:23 37 minutes, 23 seconds At full capacity utilization, we are able to produce about 160,000 metric tons with the current uh setup in place. 37:33 37 minutes, 33 seconds However, we are always evaluating which vertical is it better to produce alloys versus export that power to the grid. 37:43 37 minutes, 43 seconds Right now given that it is peak summer where power tariffs are on the higher side we have decided to exploit this uh 37:51 37 minutes, 51 seconds time by shutting down the furnaces in Orisa in lie of power export while we're also carrying out all the preservation activities and so on. So this is an 38:00 38 minutes ongoing uh situation where we assess where the enhanced profitability comes from and as such take a call. So I would 38:08 38 minutes, 8 seconds not be able to give you a fixed number in terms of what the projection would be. It's a very dynamic uh situation. 38:16 38 minutes, 16 seconds Okay. And like you said on pricing you can't comment but uh can you give some more color on what's the factors which 38:25 38 minutes, 25 seconds can drive the prices upwards or downwards on a fereral? 38:31 38 minutes, 31 seconds Yes. I think so if it's directly linked to uh steel because this is the feed stock that goes into steel production. 38:39 38 minutes, 39 seconds So if you see an uptick in steel prices, fereraly prices also invariably go up. 38:46 38 minutes, 46 seconds Um although there is healthy increase in the steel production in India, there is a lot of surplus alloy um um alloy 38:55 38 minutes, 55 seconds supply in India too because of the lack of export markets which I touched upon earlier. As a result of that, you're seeing a lot of pricing pressure right 39:04 39 minutes, 4 seconds now. Hopefully if the situation in Europe and the Middle East improves soon um we can probably look at a reeba. 39:13 39 minutes, 13 seconds Thank you so much for the next question comes from Vir Mahadeva from Money Grow. Please go ahead. 39:23 39 minutes, 23 seconds Hi Ashwin. Um so going back to our earlier point the financial investments would be enough to cover your equity contributions required for the projects. 39:32 39 minutes, 32 seconds You'll incrementally have roughly about 1,200 crores of debt that you take on between agri uh and solar. Um you know 39:40 39 minutes, 40 seconds you'll obviously generate free cash flows next year but any plans on the land sale uh the land bank in India uh because it's obviously a privilege to run a thermal business with zero debt. 39:53 39 minutes, 53 seconds Yeah, definitely. I mean in terms of the land um we uh we're exploring different options now. We have two uh you have the 40:02 40 minutes, 2 seconds Nacharam land which is in Telangana and then we have the Dhavaram land that's more you know could be used for like industrial use and so on but on the 40:10 40 minutes, 10 seconds Nacharam land the value has been appreciating so you know uh if you were on the previous investor calls years ago 40:19 40 minutes, 19 seconds there was a lot of pressure to sell it sell it and thank god we held on to it because now the value is a lot higher so 40:25 40 minutes, 25 seconds now I think we are exploring options of you know possible JVS and so on in terms of developing that land. So once we have 40:34 40 minutes, 34 seconds a kind of as opposed to outright sales it I mean both options are available but we are essentially what we're trying to 40:44 40 minutes, 44 seconds look at options and we're probably going to engage a third party to give us options in terms of sale JV and whatever makes sense we will take it forward. 40:55 40 minutes, 55 seconds Understood. And would I be able to ask what would be the rough value of that land today approximately? 41:01 41 minutes, 1 second It's hard for me to say. I mean you can ask me questions on the energy range. 41:06 41 minutes, 6 seconds Are we talking 500 800 crores? Is it more just a broad range? 41:12 41 minutes, 12 seconds I I wouldn't want to speculate on this call. 41:15 41 minutes, 15 seconds Understood. And and you know sorry I missed you on your on your last point on Africa mining. The line was unclear. I think you mentioned one of them had 41:24 41 minutes, 24 seconds encouraging results and lithium was on hold because the lease is contested. Is that right? Yes. 41:30 41 minutes, 30 seconds If you can just repeat that. So which one has had positive results and what's the way forward? 41:35 41 minutes, 35 seconds the manganese uh mine that we were exploring, you know, we had we were exploring certain areas at Ivory Co seems. 41:44 41 minutes, 44 seconds Yes. So, one seems promising which we need to take forward um and and the various steps involved there. And in 41:52 41 minutes, 52 seconds terms of the lithium um you know we've done we started the exploration the initial part was done. There were certain areas that were slightly 42:00 42 minutes promising and but that area or some of these areas have been contested by another company that has a different license. It's actually a license. 42:10 42 minutes, 10 seconds So this is the Kalo district right the lithium amethyst tantelum tin. 42:15 42 minutes, 15 seconds Yes. Mapisia that area right in Zambia. It's actually close to fairly close to where our thermal plant is. 42:24 42 minutes, 24 seconds Understood. Okay. All the best. Nothing more for me. Thank you. 42:31 42 minutes, 31 seconds Thank you, sir. There are no further questions. Now I hand over the floor to management for closing comments. 42:41 42 minutes, 41 seconds Thank you uh once again for joining us today and for your continued trust and support in NAVA. We remain committed to 42:49 42 minutes, 49 seconds build a strong, sustainable and future ready business through disciplined execution, prudent capital allocation and long-term value creation. Thank you 42:58 42 minutes, 58 seconds and we look forward to interacting with you again next quarter. 43:03 43 minutes, 3 seconds Thank you sir. Ladies and gentlemen, this concludes your conference for today. Thank you for your participation and for using Dabus conference call 43:12 43 minutes, 12 seconds service. You may disconnect your lines now. Thank you and have a pleasant evening.