Nava Bharat Ventures Ltd Q4 2020 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Mohit Kumar - IDFC Securities Limited, Research Division - Analyst : Congratulations on a good set of numbers. Sir, first question, primarily, sir, firstly, status of receivables at the end of March '20 for Maamba, and has there been some improvement in this quarter? Secondly, sir, is there any (inaudible) in the detailed press release you mentioned -- it mentioned that you are some kind of a tariff or (inaudible). There is a discussion (inaudible) which is happening? And or (inaudible) have they either a plan or something with the Zambia government or just (inaudible)? And thirdly, there's quite (inaudible) a tariff hike in January. And also, I believe that they also (inaudible) Copper Belt Energy Corporation supplies mainly to industrial, industrial consumer, is it expected to improve their financial cover? Can you please update us on that? Unidentified Company Representative Yes. Mohit, yes. Mohit, status of the receivable in NCL, this time $279 million as of 31st March. As you may be aware that we have not received the last installment due to the bulk payment, which -- for which the last installment -- first we received the $47 million, so which has also resulted in increase of the receivables. So status quo on the receivables as of now. So Ashwin will take you through the tariff negotiations with ZESCO and discuss current position on the tariff hike and the substantial increase to -- payment of the receivables to MCL.

Question: Mohit Kumar - IDFC Securities Limited, Research Division - Analyst : Ashwin, on the tariff revision since January, what's the effective number?

Question: Mohit Kumar - IDFC Securities Limited, Research Division - Analyst : (inaudible) Corporation from June -- 1st June, I think it was a substantial portion, right? And the client revised the bulk supply agreement which (inaudible) corporation mainly to mining the industry, am I right? And that (inaudible) financial.

Question: Mohit Kumar - IDFC Securities Limited, Research Division - Analyst : No. The question is, do you have any rough plan on what kind of an impact will have on the payment to ZESCO's financials with the appropriation of (inaudible) caution? Will it improve substantially? Or will it be something very incremental? without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. JUNE 29, 2020 / 6:00AM, NABV.NS - Q4 2020 Nava Bharat Ventures Ltd Earnings Call

Question: Bhavesh Chauhan - IDBI Capital Markets & Securities Ltd., Research Division - Analyst : Sir, again, on this Maamba Collieries, I would like to know now, sir, at what point do we take a write-off from these receivables because these receivables continue to mount? So what is the auditor's opinion on this?

Question: Bhavesh Chauhan - IDBI Capital Markets & Securities Ltd., Research Division - Analyst : Okay. And sir, with regards to ZESCO, is it possible to divert our electricity supply to some other party? Or is ZESCO only option for us considering that they are not paying on time?

Question: Bhavesh Chauhan - IDBI Capital Markets & Securities Ltd., Research Division - Analyst : That was helpful. Just lastly, what would be the weighted average cost of ZESCO's electricity rate that the supplier like you supply to them? Is it above us or it below us or it is somewhere around our realization which is around 0.10?

Question: Mohit Kumar - IDFC Securities Limited, Research Division - Analyst : Sir, firstly, the ferrochrome business (inaudible), it was going to expire in March '20. It was extended up to September '20, if I correctly remember. And I believe that Tata Steel has already won just this [kunda] mine. Is there any sort of renewals which are happening for this ferrochrome conversion arrangement?

Question: Mohit Kumar - IDFC Securities Limited, Research Division - Analyst : Understood, sir. Secondly, so on Telangana, power-purchase contract, I think we had contract which expired on March 20, and I think there was shortage of demand from Telangana. So do you think final reconciliation which have happened for the (inaudible) supposed to pay for the time period? Or is there something which you can update on that? Unidentified Company Representative Yes. Mohit. Yes, our PPA is Telangana (inaudible) expired on 31st March. At the end of the PPA, taking into consideration the availability of the plant during the PPA and the actual withdrawal of Transco, we have arrived at the compensation which the Transco is liable to pay to us. We have raised an invoice. But as you know, generally, these negotiations with Transco for settlement of optic compensation takes a very long time. So we have not recognized any of this revenue in our books. We'll recognize it on a receipt basis only. We don't anticipate that it will be settled in the next couple of months. I think it will be -- taking into consideration the current situation with the COVID and all the other factors, availability of the funds with the state governments, we anticipate that it will be (inaudible) in the year '21.

Question: Mohit Kumar - IDFC Securities Limited, Research Division - Analyst : Sure, sir, understood. Sir, lastly, given the fact there is hardly an players for coal linkage, there's hardly any competition, how are you looking to tie up something under a long-term linkage or maybe acquire mines given the fact that the interest on the coal linkage (inaudible) coal mines are pretty low and we can get it at a decent rate?

Question: Mohit Kumar - IDFC Securities Limited, Research Division - Analyst : Okay, sir. This is -- you're trying to linkage as well as mine. Am I right, sir?