Nava (513023) Q1 24/25 earnings summary

Executive summary

• Achieved record quarterly income of INR 12,584 Mn and profit before tax 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.

• Board approved unaudited consolidated and standalone financial results for the quarter ended June 30, 2024, and declared an interim dividend of INR 4.00 per share.

• Maamba Energy Limited began repaying sponsor dues, and Nava Bharat (Singapore) Pte Ltd paid its first US$10 Mn dividend.

• Appointment of Mr. Nikhil Devineni as Additional Director & Whole-time Director effective September 2, 2024, for five years, subject to shareholder approval.

• Avocado plantation expanded to over 90,000 trees, with next phase in preparation.

Financial highlights

• Q1 FY25 consolidated revenue grew 17% year-over-year to INR 12,584 Mn; PAT increased 30% to INR 4,459 Mn.

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

• EBITDA margin at 49.7% in Q1 FY25, down from 53.1% in Q1 FY24.

• 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

• MEL is preparing for phase-II expansion of its power plant (300 MW, US$400 Mn capex), with US$200 Mn long-term debt secured.

• Avocado plantation expansion underway, targeting 400,000+ plants by 2027, with next phase of 100,000+ trees starting Nov 2024.

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

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

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