Nava Bharat Ventures Limited has informed the Exchange regarding Analysts/Institutional Investor Meet/Con. Call Updates- Transcript of the Conference call with Investors
NA VA BHARA T VENTURES LIMITED
NAVA BIIARAT CHAMBERS, RA,J BIIAVAN ROAD, HYDERABAD-500082,TELANGANA, INDIA
NAVA BHARAT
NB V ISECTLI 23 9 12018-19 June 17, 2019
Listing Department National Stock Exchange of India Ltd. Exchange Plaza, 5111 Floor, Plot No.C/1, G Block Bandra Kurla Complex, Bandra (E) MUMBAI 400 051 NSE Symbol: 'NBVENTURES'
Dept. of Corporate Services BSE Ltd. Phiroze Jeejeebhoy Towers, Dalal Street MUMBAI - 400 00 I Scrip Code: '513023' I 'NBVENTURE'
Dear Sirs,
Sub: Disclosure under Regulation 30 of the SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015: Transcript of the Conference call with Investors.
Ref: Our Letter No. NBV ISECTLI 70512018-19 dated May 24, 2019
--oOo--
Please find enclosed the transcript of the Conference Call with Investors I Analysts held on
May 31, 2019 on the operational and financial performance of the Company for the quarter
and year ended March 31, 2019.
Kindly take the same on record and acknowledge the receipt.
Thanking you
Yours faithfully for NAVA BHARAT VENTURES LTD.,
VSNRaj~f\
Company Secretary & Vice President
Encl: as above.
Telephone :(040) 23403501, 23403540; Fax: (040)23403013 E-Mail : investorservises@nbv.in Website: www.nbventures.com Coroorate ldentitv No.: L27101TG1972PLC001549
NA\fA BHARAT
"Nava Bharat Ventures Limited Q4 FY20 19 Earnings Conference Call"
May 31,2019
NAV/\ 8HARAT
sbicap securities
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ANALYST:
MR. ABHINEET ANAND- SBI CAP SECURITIES
MANAGEMENT:
MR. ASHWIN DEVINENI - CHIEF EXECUTIVE OFFICER- NA VA
BHARAT VENTURES LIMITED Mr. G.R.K. Prasad- Executive Director- Nava Bharat Ventures limited
Page 1 of 13
Nava Bharat Ventures Limited lvfay 31, 2019
Moderator:
Ladies and gentlemen, good day and welcome to the Nava Bharat Ventures Limited Q4 FY20 19
Earnings Conference Call hosted by SBICAP Securities Limited. As a reminder, all participant
lines will be in the listen-only mode. There will be an opportunity for you to ask questions after
the presentation concludes. Should you need assistance during the conference call please signal
an operator by pressing "*" and then "0" on your touchtone telephone. Please note that this
conference is being recorded. I now hand the conference over to Mr. Abhineet Anand from
SBICAP Securities. Thank you and over to you Sir!
Abhineet Anand:
Thanks and welcome everybody to 4Q FY2019 Nava Bharat Ventures Conference Call. We have
with us the top management of Nava Bharat represented by Mr. Ashwin Devineni, Chief
Executive Officer. Mr. G.R.K. Prasad, Executive Director and other members of the top
management. I will hand it over to the management for brief opening remarks.
GRK Prasad
Thank you Abhineet. Good afternoon and a warm welcome to all the participants.
The statement of financial results both on standalone and consolidated basis and respective
presentation on operations and financials of NBV Group have already been filed with stock
exchanges and posted on our website. The presentation and the follow on disclosure today seck
to address the dynamics of various businesses and also the queries received from shareholders on
a wider investors' platform. I hope you had a look at them and trust that they provide adequate
information on our performance for the Q4 and for FY20 19 ending on March 31, 2019.
Further, I would like to throw some light upon the significant features of MCL numbers effecting
consolidated financials of NBVL for Q4 and FY20 19 as follows. The mark-to-market provision
on interest rates slabs. MCL had contracted a long term debt of USD 590 million and USD 443
million remain outstanding as at March 31, 2019 with 25% having been repaid. MCL had also
contracted with certain banks for interest rate slabs whereby 70% of the interest on long-term
debt was hedged to obtain fixed rate of LIBOR. However, as the LIB OR is a moving number, at
the reporting period end it could be higher or lower than the hedge giving rights to a notional loss
or gain respectively. Jnd-AS and !FRS regulations require that such loss or gain should be
recognized to reflect a fair view of the financials.
So as of March 31, 2019, a notional loss has arisen impacting the financials of MCL to a tune of
USD 4.5 million and USD 5.8 million for Q4 and FY2019 respectively. The other one is deferred
tax liability. The 300-megawatt power plant enjoys tax holiday for I 0 years up to FY2029 and
the income tax rate during the period ranges from 0% to 26.3%. Following the commercial
operations of the power plant, MCL availed investment allowance resulting in deferred tax
assets, which would enable the company to avail more tax free years during the tax holiday.
Page 2 of 13
Nava Bharat Ventures Limited A1ay 31, 2019
MCL is however required to make a provision for deferred tax liability of about $28 million
arising on account of timing dilTerences during the FY20 19. Such provisions for deferred tax
liability arc adjusted year-on-year based on similar timing differences in each year. This is a
requirement under IND AS and !FRS regulations.
Other comprehensive income: At the time of consolidation of financials of overseas subsidiaries,
restatement of currency done to align all the numbers with the closing rate of INR with reference
to US Dollar. The result in difference if any is captured under the other comprehensive income in
the rcpmied consolidated financials.
Year-on-Y car comparison of standalone numbers the comparison of Q4 numbers year-on-year
has to be read with the compensation for lower off take of about Rs. 3 7 Crores received in Q4 of
FY20 18 being non-recurring and so there seems to be an apparent aberration there.
Barring these,
the consolidated financials and standalone financials reflect satisfactory
performance of the company on its subsidiaries.
Now moving on to the corporate actions of NBVL, the Board of directors of NBVL has decided
to pursue the three corporate actions, which would result in reduction of outstanding equity share
capital by over 8% during FY2020. First one is selective reduction of capital through the
approval of shareholders and NCLT by cancellation of 99,47,020 equity shares held under Trust
by Nav Energy Private Limited. Selective reduction of capital through the approval of
shareholders and NCLT by cancellation of 28,00,000 equity shares held by Nava Bharat
Employees Welfare Trust as per SEBI regulations requiring unwinding of such employee welfare
trust and its shareholding by October 2019.
Third one is buyback of equity shares through stock market purchase route with buyback size of
Rs. 25 Crores at a maximum buyback price of Rs. 160 being rounded book value of the equity
shares as of March 31, 2019. In first two cases, the alternative option is to sell the shares in the
open market on stock exchanges, which is not considered prudent.
The third corporate action of buyback takes into account substantial discount of the present share
price when compared to the book value of the share as of March 31, 2019 and relative returns on
disposition offunds for such deployment.
The board took holistic view of all the three corporate actions resulting in possible reduction of
share capital of over 8% while determining the maximum buyback size of Rs. 25 Crorcs aside
from continuing dividend payout at the rate of75%, as was the case in the previous year.
We would now like to proceed with the question and answer session and request you all to seek
clarifications as you may desire.
Page 3 of 13
Nava Bharat Ventures Limited May 31, 2019
Moderator:
Thank you very much Sir. Ladies and gentlemen we will now begin the question and answer
session.
Our first question is from the line of Dcvansh Ncgotia of SIMPL. Please go ahead.
Devansh Negotia:
Thanks for the opportunity. My question was related to the one off expenses in the Zambia
operations, if you can just throw some more light on that, what are these related to?
GRK Prasad:
Could you come again, which expenses arc you talking about?
Devansh Negotia:
One ofT expenses in Zambia operations as you have mentioned.
G.R.K. Prasad:
I am talking about not one off, it is a mark to market provision on interest rate slabs which the
company is required to do under !FRS regulations based on the LIBOR movement at the end of
the period. You would find that as of Q4 and FY20 19, there has been a loss because LIB OR had
appreciated over the hedge number of 4.5 million for Q4 and 5.8 million for FY20 19. This is of
course a notional adjustment because all hedges will be closed at the payment period. but the
reporting period adjustment is required under I FRS regulations to reflect a true and fair view.
Devansh Negotia:
Sir, on the slabs we arc on the fixed side or floating?
G.R.K. Prasad:
This is an interest rate with 70% hedged and the balance 30% is floating.
Devansh Negotia:
So 70% is fixed and balance is floating.
G.R.K. Prasad:
Yes, in fact on the balance 30% also we have had some savings because the contracted hedge
was a little higher at that time anyway it varies quarter on quarter and the year end as well.
Devansh Negotia:
So the interest cost is basically on the 70% fixed on which the differential arises if that is the
right interpretation?
G.R.K. Prasad:
That is right and because it has affected the Q4 numbers and FY20 19 numbers, it is one of a kind
of thing, but otherwise the performance is quite satisfactory.
Devansh Negotia:
Sir, in terms of new PPAs that we have received this quarter, some visibility going forward that
you arc seeing if any?
G.R.K. Prasad:
On a standalone number, yes we have PPA with local discom, which runs from July onwards to
March 2020, which addresses all the surplus power that we have in our power plants as well as
the subsidia1y, which is at the same place.
Devansh Negotia:
Sir. can you just quantify the agreement?
Page 4 of 13
Nava Bharat Ventures Limited lvfay 31, 2019
G.R.K. Prasad:
This is for the period fl·om July through March 2020 and the quantum of power that is committed
for export is roughly about 50-megawatt from our Telangana works and 135 megawatt from our
subsidiary which is Nava Bharat Energy India Limited. The rate that has been decided is Rs. 4.98
subjective to small adjustments for trading margin and other things.
Devansh Negotia:
Okay, 4.98 and 130 megawatt is for the Zambia operation?
G.R.K. Prasad:
No, this is for subsidiary, local subsidiary which is Nava Bharat Energy India Limited. I am
talking about standalone here, standalone and Indian subsidiary.
Devansh Negotia:
Sir, any visibility that we are seeing in the next two to three months in terms of any PP A that we
will enter?
G.R.K. Prasad:
Currently, there is nothing, we are in receipt of that we are waiting for opportunity to really get
into that.
Devansh Negotia:
Sir. 50 MW was Ji·om Telangana and the other number that you mentioned was?
G.R.K. Prasad:
135 megawatt under the subsidiary.
Devansh Negotia:
Okay and the rate for both of them is 4.98 only?
G.R.K. Prasad:
Correct.
Devansh Negotia:
Sir, you mentioned in the press release regarding growth capital going forward and new areas
that you are looking. so if you can just throw some more light on that, which areas are we
looking?
G.R.K. Prasad:
Well, there are some initiatives which we are foreseeing, but aside from those initiatives, a lot of
work is under evaluation. I cannot really say which area we are going to pursue at this point of
time nor do I have information on the exact growth capital that we would like to have. Basically
we want to give that intent out as to what we would do with our possible monetization of assets
and what is the purpose for which it will be used for.
Devansh Negotia:
Sir, we are still evaluating the areas, but what would be the quantum of capital allocation that we
are looking, going forward?
G.R.K. Prasad:
What we want to do is as set out in our presentation as well is to have this money which is
surplus arising from regular operations. proceeds from monetization, and inJlows from our
overseas subsidiaries, going forward in three areas, one is of course the growth capital for
expansions and verifications, two, to address the current debt that is lying in our books and three.
Page 5 of 13
Nava Bharat Ventures Limited May 31, 2019
to do corporate actions as we have been doing towards shareholders returns. I cannot quantifY
anything more than that at this point.
Devansh Negotia:
Okay this makes it very clear. Thanks a lot. This is all from me.
Moderator:
Thank you. We will take the next question from the line of Mohit Kumar of IDFC Securities.
Please go ahead.
Mohit Kumar:
Good afternoon Sir. Sir. on this selective reduction of capital, can you please explain it in detail,
is there any cash outflow that we need to have for it?
G.R.K. Prasad:
No, there is no cash outflow. We are pursuing two selective reductions, one relating to the shares
held in Trust by Nav Energy Private Limited which emerged out of our erstwhile merger and the
second selective reduction of capital relates to the shares held by employee welfare trust acquired
out of an advance given by the Company sometime back. outstanding of which is about Rs.25
Crorcs.
Mohit Kumar:
So Rs.25 Cr plus Rs.25 Cr lJ·om which we will buy back our equity shares 11·01n the market. Am I
right? So Rs.SO Crores is the outgo?
G.R.K. Prasad:
It is not exactly outgo, Rs. 25 Crores is immediate outgo, Rs. 25 Crores will be extinguished.
Mohit Kumar:
Sir, is it possible to share the revenue EBITDA and PAT number for the subsidiary Nava Bharat
Power Projects Limited?
G.R.K. Prasad:
Which one are you talking about?
Mohit Kumar:
I am talking about the 150 megawatt subsidiary?
G.R.K. Prasad:
Nava Bharat Energy India Limited, I can tell you in terms of operations, it was hovering at
around 49% PLF, but in terms of net profit, it has broken even and that was the performance for
2018-19.
Mohit Kumar:
Is power plant operating for this quarter and is there any short-term contract, is it possible to
share?
G.R.K. Prasad:
We have a short-term contract, but that is like for a few hours in the day to UP, but lJ·om July.
yes, we have regular contract.
Mohit Kumar:
On the receivables lJ·ont, our receivables have gone up in Zambia, is there any update which you
can share, the kind of things you are pursuing at this point of time and something that might have
come up with discussion with the Zambia utility or the government?
Page 6 of 13
G.R.K. Prasad:
Mr. Ash win will answer that.
Ashwin Devineni:
With respect to the receivables. if you look at the period from July 2016 where we synchronized
Nava Bharat Ventures Limited May 31, 2019
the power plant to March 31,2019, about $521 million was billed, out of which, 70% has been
paid by the utility, which equates to about $366 million. We were sitting on an outstanding of
about $160 million, which equates to about 30% ofthe total receivables bilL The state utility and
the government have remained committed, they have always indicated and they continue to
indicate that this outstanding including interest will be cleared. Some of the initiatives that they
are working on which I think I mentioned in previous calls is that, they are working on a bond
issue. Unfortunately, the bond has been slightly delayed, but it is progressing. So we hope that
once that materializes, they should take care of the outstanding. Apart fi·om that, with respect to
future payments, the state utility, which is ZESCO, is in the process of engaging the various
stakeholders to discuss plans and scenarios to ensure that moving forward they meet their
monthly payments and no outstanding is cumulating.
Mohit Kumar:
The receivables, which we are carrying at this point of time $160 million, does it include the
carrying cost or is it without the carrying cost?
Ashwin Devineni:
It does include a little bit of interest amount. which is billed and outstanding. As of March 31,
2019 it is about $6 million.
Mohit Kumar:
I am talking about penalty or something, let's say there is any delay?
Ashwin Devineni:
I am talking about interest only. For the delayed period, there is an interest, which is prescribed
in the PPA, so that interest amount outstanding as of March 3 I, 2019 is about $6 million out of
$165.
Mohit Kumar:
Okay, thank you Sir.
Moderator:
Thank you. The next question is from the line of Harsha Ward han, an individual investor. Please
go ahead. Harsh Wardhan, your line is umnuted, please go ahead with your question.
Harsha Wardhan:
Good afternoon. This MTM loss is only for this financial year or next financial year also there
will be some MTM losses?
G.R.K. Prasad:
This MTM loss is a notional provision. It keeps happening because !FRS requires that. MTM
loss is recognized at every reporting period, so it could be quarter end or it could be year end.
Harsha Wardhan:
Okay Sir fine. What about the unit in Odisha. like is there any progress there?
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Nava Bharat Ventures Limited May 31, 2019
G.R.K. Prasad:
No, we arc waiting for some of the legal impairments to be cleared still. Once that is done then
we will be in a position to operate the plant. At this point. it is still locked in some legal issues
where the open access is being denied.
Harsha Wardhan:
Last question, there is an ED attachment for 150 MW plant which is supposed to have been
completed in 2012, as of March 31, 2019. there is no progress. when can we expect a clean chit
on that?
G.R.K. Prasad:
This actually does not pe1iain to the listed company. It pertains to one of the subsidiaries that we
have where enforcement directorate attached the shares held by one of the subsidiaries in our 150
MW power plant. so the process is still sub-judice, we have been pursuing for a substitution of
security in lieu of shares and that also is in sub-judice.
Harsha Wardhan:
Last question, is the company affiliated to any political pmiies?
G.R.K. Prasad:
None. it is not.
Harsha Wardhan:
Okay fine. Thank you.
Moderator:
Thank you. We will take our next question from the line of Siddharth Shah from MK Ventures.
Mr. Siddhmih Shah please go ahead with your question.
Siddharth Shah:
Thanks for the opportunity Sir. First question is on the Zambia, we saw the availability come
down in this quarter, so anything specific here and how do you see it going forward?
Ashwin Devineni:
This is Ashwin. With respect to the availability, you know 86.9% which is fairly good, we did
have some scheduled shutdown for maintenance and so on and that is one of the reasons and we
have a PLF of about 74.6%, so there have been no major issues experienced at the power plant
and both the units are running.
Siddharth Shah:
That is for the full year. but if! see for qumier, the availability was 76% and Q-o-Q. there is a dip
in PBT and PAT. so this was mainly because of shutdown which was taken, annual shutdown or
something in Q4 right?
Ashwin Devineni:
Yes. we did do our annual maintenance for the unit basically.
Siddharth Shah:
Is it safe to assume that we should again be able to do 85% kind of availability from next quarter
onwards. Q I onwards?
Ashwin Devineni:
Yes.
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Nava Bharat Ventures Limited May 31, 2019
Siddharth Shah:
Second question is on the tax part. The tax outgo for Zambia is about $13 million that is around
40% of PBT, so can you just explain once again what is this regarding and how much of it is cash
outgo or just a provision?
G.R.K. Prasad:
Of that 28 million is provision, which is for deferred tax, so there is no cash outgo, balance is
cash outgo.
Siddharth Shah:
Sorry out of29.7 how much is cash outgo?
G.R.K. Prasad:
28 million is provision, balance is the cash outgo. 28 million is the provision for deferred tax. so
that you can safely take it out.
Siddharth Shah:
Last is on the receivables part, so 30% of the amount billed is yet to be received, so is this
pertaining to the last 30% bills or is it that the earlier bills also they have only paid 70% and 30%
is held back or something?
G.R.K. Prasad:
No. we keep an adjustment on a first in first out basis. so you could say 30% pertains to the
recent bills.
Siddharth Shah:
Okay, that is it from my side. Thanks for the opportunity Sir.
Moderator:
Thank you. The next question is from the line of Ani! B G of Jet Age Securities. Please go ahead.
Anil B G:
Good afternoon Sir. Just have two clarifications to seek. One is this reduction of capital should
happen how soon?
G.R.K. Prasad:
The selective reduction goes through process of shareholders' approval and other approvals from
stock exchanges and the NCL T. Our expectation is it could take about six to seven months from
now, in fact the buyback also runs the same course till November.
AniiBG:
Secondly, the mining segment profit has declined sharply in Q4, can you explain why that has
happened compared to Q3?
G.R.K. Prasad:
Mining division operations go around actual extraction of coal as opposed to overburden
removal. So in a particular quarter, if the overburden is higher, that impacts the operations of that
particular division. Since our Zambian subsidimy took up one new pit you will find slight
aberrations in terms of quarter-on-quarter, first overburden is removed, then steams are exposed
and then once the coal is extracted, then some more overburden will be extracted, something like
that till such time a complete bench formation happens.
Anil BG:
So on an average what would be our coal merchant sale price for Q4 vis-a-vis for the year, has it
Page 9 of 13
Nava Bharat Ventures Limited May 31, 2019
G.R.K. Prasad:
It is just the volume impact. The price impact was holding very steady.
Anil BG:
Final question, what is the current power tariff in Zambia for HT consumers and LT consumers.
if you can generally say? I am not specifically asking. but both for HT and L T is there a
substantial difference?
G.R.K. Prasad:
Yes, in terms of mining companies. the tariff is agreed to be about 9.3 cents, that is a temporary
tariff, till such time the utility of the government carries out a cost of service study whereby they
expect the tariff to go up. In terms of other than mining companies, there are prescribed tariffs,
even there also, the government and the local utility arc trying to push the tariff up over a period
of time.
AniiBG:
But that will be roughly at what level?
G.R.K. Prasad:
On an average, I think it is about 4 cents.
Anil B G:
Our current contract the tariiT is set for FY2020 for MCL. we need to set every year or every
quarter?
G.R.K. Prasad:
No. it is done every year. actually tariff is one, but the changes happen only in terms of US TDI,
so relative to that some changes happen in the tarilTnumber as well, for us that is every year.
Anil B G:
Thank you so much.
Moderator:
Thank you. A reminder to our participants, if you wish to ask a question. you may press ''*" and
"I". Anyone who may have a question may press"*" and "I". Our next question is from the line
of Abhineet Anand from SBICAP Securities. Please go ahead.
Abhineet Anand:
Thanks for the opportunity. Firstly, I wanted to understand what is the market in India in terms of
the merchant scenario, what we have seen in the last three to four years, obviously the market has
been subdued with these prices of around Rs. 5 that you mentioned sta11ing from July, have you
seen lot of bids not just for you, but other players who have open market capacity, so do you feel
that the merchant market is improving which was suppressed for the last few years?
G.R.K. Prasad:
Well, there is no clear indication in terms of merchant power scenario, but what we see is that
you know if lEX can be taken as a benchmark, there has been some firming of the lEX prices of
late, but I think everything is principally driven by an increase in industrial consumption that
seems to be languishing for the last two to three years. So unless that changes, we do not see
merchant power rates moving up significantly. So our aim is to keep the control on our input
cost to the extent feasible so that we stay competitive.
Page 10 of 13
Nava Bharat Ventures Limited A4ay 31, 2019
Abhineet Anand:
When you say Rs.4. 98. is it net of everything that comes to you or what is the number that comes
net of trading etc., or dealing whatever might be the charge apart Jl·om that number?
G.R.K. Prasad:
This is more or less the same number except for a minor trading margin, which is about 2 paise,
so Rs.4.96 is the net tarifffor us.
Abhineet Anand:
Okay and when you said NBElL 135 MW, which means that is the net capacity right out of 150?
G.R.K. Prasad:
Correct that is the full deliverable capacity.
Abhineet Anand:
What could be a broad number in terms of cost of production from your NBEIL plant and the
Tclangana, which you have said?
G.R.K. Prasad:
Our target is to generate power at about Rs. 4 to Rs. 4.20, that is the plan. That is the full blown
cost.
Abhineet Anand:
Thanks.
Moderator:
Thank you. Our next question is from the line of Siddharth Shah of MK Ventures. Please go
ahead.
Siddharth Shah:
Sir, just a follow up on the tax part. Sir, how do we expect this tax expense moving forward in
Zambia?
G.R.K Prasad:
For example, we had this deferred tax provision of 28 million, the next few years the provision
would be substantially less, I think our present assessment is it could hover at around 8 million
also max per year and that too for the next two years.
Siddharth Shah:
Understood, on the receivables part, whatever the bond issuance Zambia government is trying to
do, any estimate on the timelines as to when do we expect that to happen or any specific
challenges we are facing in this bond issuance?
Ashwin Devineni:
ZESCO and the government are working on it, it is confidential to them, I do not think they are
disclosing timelines through the IPPs or any other parties, but we hope it could happen soon.
Siddharth Shah:
In our estimate, will it take a couple of months or probably it could stretch even higher like
couple of quarters or more?
Ashwin Devineni:
No, I think it will take a couple of months that is it. We are not talking about years or anything;
we arc just talking about a couple of months.
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Nava Bharal Ventures Limited May 31, 2019
Siddharth Shah:
Post this bond issuance, where do we see the receivables coming and stabilizing it at what levels
out of USD 165 mn'l
G.R.K. Prasad:
Our expectation is that the bond proceeds will be used to discharge outstanding dues of all IPPs,
so we hope to get bulk share of that. So some outstanding receivables will continue to be there,
but I think on a normative basis we expect about three months billing to be outstanding say by
end of this year. That is how the plan is.
Siddharth Shah:
So receivables should come down to something like 60 million by the end of this year?
G.R.K. Prasad:
Three months will be about yes. close to 70 million including whatever are the local taxes.
Siddharth Shah:
Understood. Thank you.
Moderator:
Thank you. A reminder to our participants, if you wish to ask a question, you may press "*" and
"1". Our next question is from the line ofMohit Kumar ofiDFC Securities. Please go ahead.
Mohit Kumar:
Some clarifications Sir. In the press release, the MCL has surplus of USD 44.3 million, so why
do not you use it to repay the debt. is there any reason for keeping it on the books?
G.R.K. Prasad:
This is surplus after making the periodically repayments, so we cannot do an accelerated
repayment because of the covenants, in fact we are driving to a point where the sponsors and the
shareholders will have access to these funds for their distribution as soon as possible.
Mohit Kumar:
Second question, on the press release you mentioned that we are looking for modifying our
contract, or if they look for different customers for the offtake of Zambia, are you working on
something on those lines?
Ashwin Devineni:
We only have one customer which is ZESCO, so as I did mention earlier, ZESCO is engaging
both IPPs and their end customer which are mines and so on to essentially arrive at a solution
where they are in a position to pay the dues in a timely manner. So those discussions are still in a
very, very initial stage, but I think what we are happy about is the fact that we are seeing a
significant initiative to resolve this issue, they are numb to the fact that they owe the IPP the
outstanding amount.
Mohit Kumar:
When did this cost of service study being done in Zambia to get finalized and subsequently there
is a tariff hike, what is your expectation at this point of time?
Ashwin Devineni:
Initially a contractor was selected for this cost of service study, unfortunately that did not work
out. I think cost of service study is being funded by Development Bank, so there was a certain
process and procedures that they have to follow to appoint another consultant. So I think it will
take at least a year to year and a half more for the actual numbers to come out.
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Nava Bharat Ventures Limited May 31, 2019
Mohit Kumar:
Thank you.
Moderator:
Thank you. Ladies and gentlemen, that was our last question. I now hand the floor back to Mr.
Abhineet Anand for closing comments. Over to you Sir!
Abhineet Anand:
Thanks everyone for joining the call. I would like to thank the management for giving us this
opp011unity to host the call. Thanks everyone.
Moderator:
Thank you. Ladies and gentlemen, on behalf of SBICAP Securities Limited, that concludes this
conference. Thank you for joining us. You may now disconnect your lines.
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