Ladies and gentlemen, thank you for your patience. We will be beginning with the conference in a short while. Thank you for holding. Ladies. And gentlemen, good day and welcome to the Nava Limited Q1 FY 27 Earnings Conference call. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing Star, then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Shubham Borade. Thank you. And over to you. Thank you Ananya. Good afternoon to all. On behalf of ICICI securities, I welcome you all to the Q1 FY 27 Earnings call of Nava Limited Today we have with us from the management, Mr. Ashwin Devineni. Aging director and CEO, Mr. G. R Prasad, executive vice. Director. Mr. Nikhil Devineni, executive. Director. Mr.. Bruce B Srinivasa Rao, CFO and Mr. Raju, Company Secretary. We will begin with the opening remarks from the management, which will be followed by a Q&A. Thank you and over to you, sir. Thank you. Good afternoon, everyone, and thank you for joining us. I am pleased to share our performance for the first quarter of 27. We have. Started the year on a strong note with consolidated total income reaching an all time quarterly high of rupees 1269 crore. The. Quarter reflects the strength of a diversified portfolio and the benefits of disciplined cost management. Our energy and mining business delivered healthy operating performance with ML 300 megawatt plant operating at a strong 89.3. PLS. Our international foray also continued to provide value through dividend flows and to attain financial strength to pursue investments at the. Alone level. The total income reached a record rupees 689 crore lower. Coal and manufacturing costs, along with dividend income from our global. Supported this improvement. We continue to make measured progress on our next phase of growth in the energy and commercial agriculture segments. Our thermal energy, renewable energy, avocado and sugar projects in Zambia are in active implementation, and some are set to yield revenue. Shortly. Phase two of ML is expected to commence operations next year. Later than originally envisaged, owing to certain challenges beyond our control. With no material impact on project CapEx. It is, however, heartening that the 100 megawatt solar power project, said to be commissioned shortly, would establish a new niche for Novar, prompting further investment in this space. We are cognisant of the significant challenges arising from the geopolitical and supply chain disruptions, and are taking appropriate remedial actions. Our diversified portfolio, financial strength and operational resilience should, however, position us well to navigate these challenges while remaining focused on long term value creation. With that, I open the call for. Political party. We went through many, many political parties changes since we started. So yeah, we are not affected. Thanks for that, sir. Ladies and gentlemen, please press star one to ask a question. Participants who wish to ask a question, please press star and one. The next question is from the Line of Vansh. An individual investor. Please go ahead. The next question is from the line of Shree Gopal Kankani Please go ahead. This is the follow up question. Good afternoon sir. Sir. My question is because there was some problem in connection. I could not hear your last five minutes. Speech. I just wanted to know what is the expected date of commissioning of this 300 megawatt thermal? Because earlier it was. You've been unmuted. Please go ahead. Are you I am speaking, madam. Can you hear me? Hello? Sri Gopal. Go ahead. Are you able to hear me? Hello. The current participant has been disconnected. We will move on to the next. The next question is from the line of Vijay, who is an individual investor. Please go ahead. Hello. First of all, may I know if I am audible? I have got disconnected several times. Yes, yes. You are audible, sir. Please go ahead. Yeah, I do not hear anything from the other side. Yeah. My first question is regarding the company's assets. How they are taken into the books. We have 65 acres of land in Hyderabad. We have some 200 acres in Summercourt and another 20 acres in. I believe, or maybe the other way around. How are these assets taken in the books? So. We. J can you hear us? Now? I can hear you. I don't know this conference call has been jinxed. I tried 3 or 4 times to get into it. Okay. You can hear us now, right? Did you hear the questions? And. Answers. Yeah. Now I can hear you. Very. Early. Can I ask my question again? Or. You heard it? Question, like the how this. Land is recorded in the books like Historical cost. No, no no, no, we just wanted to make sure we are audible. So with regard to your So you have got these real estate assets, the land assets, the land bank. Recorded at historical price. What is the reason why they are not being revalued and taken at current value? Current market price, or at least the current realistic cost, because that will change your book value considerably. The book value per share. Book value per share is the book value per share is very much depressed. For the. Accounting standard allows us to carry. At the historical cost, the. That is why we are carrying a cost. I see, and what are the management plans to make these work? Make these assets work to the benefit of the company and the shareholders. So I think, you know, we've been holding these assets for a while, and I think the fruits of that have are kind of showing with valuations. You know, really going up. It's good that we did not sell these assets at an earlier stage. Otherwise we wouldn't have, you know, wouldn't be realizing the the greater valuations. But what we have done is just to understand what opportunities we have today. We have engaged a third party to study. Investigate with the current asset values, what are the possible options that are available for us in the event we want to do anything today? So that study is currently ongoing. Yeah. We've been hearing this for quite some time, but we have to make this effect work towards company plans. For example, company has recently changed its memorandum of association and brought in a lot of additional avenues for power generation, such as solar, wind, nuclear, etcetera, etcetera. So with these, you will need capital and that capital can come only from these assets rather than borrow. Yes. I don't think we have an issue in terms of capital right now. All the projects that we are and we are envisaging and are currently, you know, that are currently underway, are adequately funded and we have enough equity and cash in our books to fund that. We don't need to sell the assets in distress or to, to basically generate cash at this point for as a company, we feel that. And I think it has paid off that we have held on to these assets. Yes. We have been saying that. But for example, if we had sold these assets. Years ago when we were being questioned about the assets, I don't think we would have realized the appreciation of. The, you know, the assets have in terms of how they've grown up. If you are interested, that asset value at that time into your projects, the projects would have also generated additional profits. Once. Mr.. Vijay, I'd like to state that we are not it's not a situation where we're not undertaking projects because we don't have cash. Whatever projects we deem fit, where we look at the risk and so on, and that we want to undertake, we have adequate cash to fund those projects. Thank you. My next question is about the. Holding. Of Zambia assets. Initially, Zambia. Was created through. Out of Nava Limited profits. Nava Limited funds. Subsequently. Nawaz Global seems to have taken over these assets and they are now being shown as. Accruing to global and our global Giving dividend or buying back its own shares from Nava Limited. With that money etc. so who is the ultimate owner of the Zambia project? Number one. And number two is global. Is there any plan for spinning it off the way this thing is? The foreign projects are going and are spinning it off or demerging it and going in for an IPO. So first and foremost, with. Regards to the large assets, I mean, I'm sure you're talking about the asset. It was always under global. The only difference was Narga global was called Singapore. You know, in the past it was not like it started with Narga. And then we moved it to global or anything of that sort. So we always had our global as the the. International asset holding company that we wanted to grow today. Now our global has multiple assets. It's got the current Mamba Power plant. It's got Mamba Solar Energy as a company. And they may be. And we have got the. The mind and the Ivory Coast. And there may be other international assets that could fall under it. So it does operate independently. The ultimate owner. Yes. Is because it owns 100% of Navajo. So you are telling me that Nava Limited is 100%. Ultimate owner, beneficial owner of Navajo Global. Yes. That's right. Okay, I'll go back in the queue. So. On the line because I got disconnected several times. Thank you. The next question is from the line of Kaushik Doshi from ICICI securities. Please go ahead. Yeah. Thank you for the opportunity, sir. My first question is regarding the Zambia. How is the situation in Zambia currently and due to West Asia crisis, do we have any power reception in Zambia? Sorry, can you repeat the question? I think it will slowly. Hello. Yes, yes. Just go a little slow. Yes. My first question is. Regarding the Zambia currently, how is the situation is there right now? And due to West Asia crisis, are we facing any power receptions? Do we have any power receptions? To situation is fine. Currently there are no power. Power disruptions. There. Second question is due to West Asia crisis, are we anticipating any increase in the supply of coal in. Zambia. In supply of coal in Zambia. Sorry. Can you repeat the question? Kaushik. Mr. Kaushik. Ladies and gentlemen, we will move on the next participant. Once an individual investor, please go ahead. Yeah. So one more question I had was the deferred tax deferred tax expense that you have shown in the books. Like, is there any. Or scope of stabilizing it or will the one 6200 crore per year mark will be always there as deferred tax expense? You are talking about a console level. Yeah, on the console level. I'm talking about last year it was 261 crores. And this. Quarter you have again shown 40 CR. And the last quarter it was 163 crores because of the Zambian and US. Currency problem. So what is the situation over there. Now the Jamba like kwacha. Yes we are exchange. Is around ₹18 as on 30th June. So it is rising today. We don't like. You never know what happens in the future. Like it depends upon the prevailing exchange rate on the date of the fourth. So this. If the currency stabilizes, then the sporty crore will become again like the next quarter will not be there, right? It may get even reversed. Also. Okay. Can you. Okay. And moreover, like the previous question about the assets that you have, if I may know, what is the current value of those assets? What assets are you referring to? The Hyderabad 200 acres that you have. The historical cost of land is around. 40. And what will be the current value? Approx. I think, you know, that's something that the report that we have commissioned through the third party that I have mentioned will possibly bring out. The value is moving. I think every call is moving. Fortunately upwards to. So it's appreciated a lot from I think the past few years. Yeah. But if we can get an idea, then we. Great for shareholders. Around. Yes, but I don't think, you know, we would want to speculate on giving a number because it is a moving. This is real estate. At the end of the day. Yeah, yeah. No issues, no issues. And moreover the mining that you are taking on, the exploration part. What is the status on that? So there are two parts to it. I think you may be referring to the manganese mining or exploration. Manganese and the lithium ion ore mining that you are exploring. Yeah. So in terms of the lithium, it's a very large area. So the exploration is currently underway. There's been a slight slowdown because of the elections and so on. But the exploration is still underway on the. Manganese two. It is a fairly large area. You're talking about 360km², which is part of the concession out of this, we have done detailed exploration and only two square kilometers based on. On those results, I think the prima facie indications are that it does look promising. So we are currently working on converting the exploration licence into an exploitation one. So by when can we expect that if it's. I request you to join back in the queue. Please. Fine, fine. Thank you. Reminder for all participants, please restrict your questions to two per participant. The next question is from the line of Sri Gopal Kankani from Kankani and Associates. Please go ahead. Good afternoon sir. Sir. My question, because I was initially not participating in the discussion because my line was disconnected for five minutes, so I couldn't hear your speech. I just wanted to know what is the expected date of commissioning of this 300 megawatt thermal power plant? Because earlier it was, I think, plant for Gen 27. So what is now the expected date of commissioning of this plant? So hello. Yeah. So, so so right now we're looking at the commissioning of both the units by Q2 of FY 2728 around the July time frame of next year. Okay, sir. And my one question about that, whether any plant shut down in the current quarter for Mumbai Mamba plant, sir. Okay. We have a biannual shutdown that is scheduled in the current quarter. In the current quarter. Okay. Which which is the biannual maintenance? Basically, it's the regular biannual maintenance that we conduct. Yes. I know, sir. Okay. Thank you sir. Thank you. The next question is from the line of Aditya Srimal from PCI securities. Please go ahead. Yeah. My question is regarding the return on equity on the additional 300MW that you have set up. So and what what would be the taxation? As far as the 300 megawatt is going to be? Give us a. Second. AM I audible? Hello. Yeah. So my. Was because the cost entailed in this next 300 megawatt is much lesser than the earlier plan and. The. Even the PPA is also signed. What is the expected return on equity on. On the investment. And what is the taxation? That will be applicable on this. Give us a second, please. Yeah. So the return on equity that we envisaged is about 15%. And with regards to the second phase, we currently don't have a tax holiday. But that is something that we are actively pursuing with the government. Thank you. The next question is from the line of Shreyas from. Scientific investing. Please go ahead. I said am I audible? Yes. Thank you for the opportunity, sir. So my first question is, sir, can you please explain what is the reason behind Zambia Energy EBITDA margin being declined over the years, and what is the sustainable margin going forward for the Zambian energy? The reason for decreasing is on account of less reversal of ECL credit. Okay. What is the sustainable margin going forward, sir, for the Zambian energy segment? I don't like. A 45 to 50% is the better. 45 to 50%. Yeah. Okay. And my second question is how do the intersegment eliminations work? And is there any ratio which we can use to estimate the consolidated EBITDA from segment EBITDA? Because there is a lot of intersegment eliminations. So we. Some transfer pricing between power and metal sector in Indian operations, and also there like for coal consumed in energy from mines. So this gets eliminated. The transfer price adopted for transfer is gets eliminated. And when it comes to consolidated EBITDA, it will be around between 35 to 40%. So the segment EBITDA is 35 to 40% will be considered for the consolidated EBITDA. That concert level? Yes. Okay. And one last question, sir. And the reason in the interest cost, how is the interest cost being calculated? Because are we capitalizing it during the construction time? And what is the industry practice? Because there is no big increase in the finance cost, despite of having a higher loan. So the. Finance. Finance. Cost incurred on phase two gets capitalized. Okay. Is it the industry. Practice. Is this the industry practice. Yeah it is. It is required by IFRS and the India as well. Okay. So thank you. I'll get back to the. Q. Thank you. The next question is from the line of Vijay, an individual investor. Please go ahead. Yes. Sorry, I might have missed some of your initial comments or initial answers because I was disconnected. The recent amendment, which is made to the company's memorandum. The New clauses clause about power generation, which I introduced with new. Avenues of nuclear and solar, etc. could you. Tighten the shareholders about what are the company's plans for expanding its power generation operations in India in this particular fields? Yeah. So I think with regards. Are you talking particularly with respect to India, because I'm going to be talking in general with India and internationally. We as a company are looking seriously at the renewable space. I mean, and not just solar. We're looking at solar. We're looking at wind, we're looking a combination of both of them with battery storage. So you have round the clock power. So there are certain opportunities that we are currently investigating and assessing and. With regards to nuclear, I think the whole concept of the small modular reactors, which we term as SMRs. Now. Seems to be gaining a lot of traction. And given that we that we are in the power space. We have been also looking at that sector in terms of developments. But I think the SMR space is very new and it will take a little more time to evolve. But we are actively looking at all the developments that are taking place there. So all these activities are going to be international and not in India. No, I don't think we are saying they international and not in India. We're looking at it in all geographies including India. I think we are we are quite location agnostic. I think what we do look for is where the best returns for the risk that you're going to be taking come from. That could be very well in India or elsewhere. I'm sorry if I have misrepresented it, but what I meant was for a long time we have not expanded any of our Indian operations. So that's that's why I asked, because in India today, there is a lot of scope for this particular activities. Yes. So we I mean. Like we said, we look at. Returns and we look at the risk in the renewable space. Although there's been a lot of expansion in India, it is sometimes it's been a hit or a miss given the you know, given the tariffs and the and the grid situation. So we look at the geographies. You know, without being partial to India or international, we're looking at the best returns and. Risk. And that's really played out well for us. If you look at Zambia today, it's generating good revenue and good profits. That's helping the growth of our company in various verticals. Yes. I agree with you. Has been a runaway success. Coming to the Ivory Coast. Operation. When we are looking for manganese there. You are also stated that you are likely to put up a manganese alloy plant. There. Is there any progress on that? So I think with respect to the mine, we have disclosed that the exploration results have yielded promising returns. So where we are in the process of converting that into exploitation. But this particular mine, that we have worked on is exclusively targeting the Indian operations in order to set up a factory in Ivory Coast. There is another mine, which is right now controlled by the government, for which we are looking to be JV partners. That's still under the approval phase. But once that does come through, then we could evaluate setting it up there. Thank you. So I. Will go back in the queue if there is still time. Thank you. The next question is from the line of sight from scientific Investing. Please go ahead. 100% consolidation. Does the reported OCF of Nava Limited include 100% of Zambian cash flows, or only. Or is it adjusted? As per 65% share? Sorry, sir. Okay. And one last question is, sir, the metals business is struggling in terms of margin. And what is the outlook going forward for margins and sales growth going forward. I in the metals business. As you know, it's one of its volume driven rather than margin driven. Okay. You know. Quarter on quarter basis. We have seen actually a slight improvement in terms of pricing on the spot market to the extent of about 5 to 10% going forward. We are quite well ring fenced against any volatilities because almost 70% of our production is already committed either under long term contracts or quarterly contracts. So I think to answer your question with respect to margins, we could probably either see a. Stability in terms of where we are today or it's not a slight increase, but I don't see a downward trend, at least until the end of the financial Okay. What about the sales? Like it is stagnant from last few years. That's the reason I'm asking. Your question was not clear. Can you please come again? Sir, I am. Talking about the sales growth. What is the expected sales growth. Yeah. So I think this particular quarter, as we disclose the unit was under shutdown for long term maintenance activities. That's the reason the sales numbers have slightly decreased. But. Anyhow that is behind us. Now we have resumed operations from Orissa as well. On 1st of August. Okay. Okay sir. Thank you. Thank you. As there are no further questions from the participants, I now hand the conference over to the management for closing remarks. Over to you. Thank you. Once again for joining us today and for your continued interest in AWA. We believe the resilience of our core businesses and the progress of our growth platforms position us well for sustainable, long term value creation. You have any further questions or require additional information? Please feel free to reach out to our Investor Relations team. Thank you and have a pleasant evening. On behalf of ICICI securities, that concludes this conference. Thank you for joining us. And you may now disconnect your lines.