Nava jumped 12.96% to Rs 227.55 after the Arbitral Tribunal issued a "Consent Award" to the company's subsidiary, Maamba Collieries Limited (MCL), settling all the claims against Zambia Electricity Supply Corporation (ZESCO).
Nava's step-down down subsidiary, MCL, has been pursuing International Arbitration against ZESCO for outstanding receivables.The Arbitral Tribunal issued a "Consent Award" settling all the claims and confirming the payment plan to liquidate the outstanding arrears following an agreement reached between MCL and ZESCO.
As per the Consent Award, ZESCO shall, by August 2023, discharge the outstanding and overdue arrears aggregating to about $518 million as at 31st October 2022 after adjusting for a cash discount of $60 million, extended by MCL. As part of the award, ZESCO is mandated to discharge the VAT liability of about $70 million forming part of the total arrears as above, directly to the government.
The Consent Award is an international award for all purposes and validates the long-standing arrears from ZESCO. The settlement has been reached in an amicable manner to address the overdue power purchase bills while the monthly payments for power sales from May 2022 are being realized in full.
Nava is a diversified group, with businesses in metals manufacturing, power, mining, agribusiness and healthcare. It produces and supplies over 200,000 tons of ferro alloys each year; operate several power plants of 743 MW; work with hundreds of sugarcane farmers to produce and process sugar as well as ethanol; and in 2017, its investments grew to include healthcare services.
In 2010, Nava's international assets grew to include Maamba Collieries, Zambia's largest coal mine concessionaire, which has also led to the development of a 300 MW power plant in Zambia, in 2016.
On a consolidated basis, net profit of Nava rose 341.67% to Rs 137.36 crore on 9.92% decline in net sales to Rs 741.68 crore in Q2 September 2022 over Q2 September 2021.
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