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MCL had paid off all overdue loan installments and reduced its overall liabilities from $483 million (Rs 3,999 crore) to $206 million (Rs 1,707 crore) due to improved operational cash flows and receipts from an arbitral award against Zambia Electricity Supply Corporation (ZESCO).
In December 2022, an arbitral tribunal in London issued a consent award of $518 million to MCL in an arbitration against ZESCO to recover outstanding receivables. ZESCO has been making payments against the award, with settlements totaling $181 million as of date.
MCL has also been receiving full payments for all energy sales since May 2022, resulting in incremental cash flows. With the loans now standard, MCL is planning to engage with its lenders to discuss the way forward, including distributions to sponsors.
Nava has diversified interests in metals manufacturing, power, mining, agribusiness, and healthcare. The company produces and supplies over 175,000 tons of ferro alloys each year, operates several power plants of 743 MW, and has investments in healthcare services.
In 2010, Nava acquired Maamba Collieries, Zambia's largest coal mine concessionaire. This acquisition led to the development of a 300 MW power plant in Zambia in 2016.
On a consolidated basis, net profit of Nava declined 9.52% to Rs 246.66 crore on 13.28% decline in net sales to Rs 881.44 crore in Q4 March 2023 over Q4 March 2022.
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