Nava Limited, a diversified conglomerate and the parent company of Maamba Collieries Limited (MCL) has announced a significant turnaround on financial position of MCL. The company has substantially reduced its liabilities from USD 483 Million (INR 3,998.57 Crs) as of December 1st, 2022, by USD 277 Million [INR 2,296 Crs] to remain at USD 206 Million [INR 1,707 Crs] as on date. This includes repayment of overdue principal instalments and other liabilities.
MCL has been receiving full payments for all energy sales from May 2022, contributing to incremental cash flows, including that from coal sales. Leveraging upon improved cashflows and settlement of arbitration dues from ZESCO, MCL has successfully discharged all overdue loan instalments, cleared liabilities and is current in its debt service obligations.
Following successful resolution of arbitration against Zambia Electricity Supply Corporation Limited (ZESCO), a Consent Award of US$ 518 Million was issued by the Arbitral Tribunal in London in December 2022, in favour of MCL, for the recovery of outstanding receivables. ZESCO had proposed to discharge a total of US$ 338 million by December 2023 and the balance of US$180 Million by December 2024 against Consent Award of US$ 518 Mn. To date, ZESCO has made payments totalling USD 181 Million against the award, including a recent payment of USD 60 Million, adhering to its payment plan.
With the loans of MCL now being current, MCL is eager to engage with its Lenders to discuss the way forward, including potential distributions to sponsors. These discussions will not only strengthen Nava Limited's financial standing but also pave the way for sustained growth and profitability.
CEO of Nava Limited, Ashwin Devineni expressed his enthusiasm for the company's financial turnaround, stating, "We are immensely proud of the remarkable turnaround made by MCL. The successful resolution of the arbitration case and the substantial debt reduction are significant milestones in our journey towards long-term success of Maamba project. We are grateful to our shareholders, lenders, and employees for their unwavering support throughout this period."
Nava Limited extends its sincere gratitude to all stakeholders for their unwavering support and commitment. The successful resolution of the arbitration case and the subsequent debt reduction highlight Nava Limited's dedication to financial stability, sustainable growth, and value creation for its stakeholders.
Shares of Nava Limited was last trading in BSE at Rs. 260.60 as compared to the previous close of Rs. 246.45. The total number of shares traded during the day was 202397 in over 7267 trades.
The stock hit an intraday high of Rs. 273.80 and intraday low of 249.00. The net turnover during the day was Rs. 53777785.00.