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SJVN Ltd
Earnings Call Analysis
Q1-2025 Analysis
SJVN Ltd
SJVN Limited had an eventful first quarter for the fiscal year 2024-25, highlighting significant developments in both renewable and conventional energy projects. The company's commitment to expanding its green energy footprint and achieving ambitious capacity targets is evident from the key milestones shared by the management.
One of the main highlights is the commissioning of the 90 MW Omkareshwar Floating Solar Project in Madhya Pradesh, expected to generate 196 million units of energy annually and contribute an estimated INR 64 crore in annual revenue. The total installed capacity of SJVN now stands at 2,466.50 MW. Additionally, SJVN successfully completed the head race tunnel excavation for the Arun-3 Hydroelectric Project in Nepal, marking a significant step in their hydroelectric ventures.
The Cabinet Committee on Economic Affairs approved an investment of INR 5,792.36 crore for the 669 MW Lower Arun Hydroelectric Project in Nepal, with a levelized tariff of INR 4.99 per unit. Furthermore, the government of Mizoram allocated the Darzo Lui Pump Storage Project (2,400 MW) to SJVN, adding to their diversified project portfolio.
For the quarter, SJVN's revenue from operations was INR 831.73 crore, up from INR 664.62 crore in the same quarter last year. Profit after tax stood at INR 327.15 crore, increasing from INR 270.20 crore the previous year. SJVN Green Energy, a wholly-owned subsidiary, reported a revenue of INR 41 crore and a profit of INR 29 crore. The company's target is to reach a total capacity of 2,638 MW by the end of the fiscal year 2024-25.
SJVN's current consolidated debt is approximately INR 21,000 crore, with plans to raise an additional INR 6,500 crore over the next two years to finance upcoming projects, which will bring total debt to around INR 28,000 crore by the end of the next fiscal year. The company is also looking to raise INR 2,000 crore through the dilution of a 20% stake in SJVN Green Energy Limited, subject to regulatory approvals.
Significant operational achievements include the highest-ever monthly generation from the Nathpa Jhakri Hydropower Station and overall highest monthly generation across all operational projects. Looking ahead, SJVN has floated tenders for 4.8 GW out of the targeted 10.8 GW for the fiscal year 2024-25. The company's long-term vision includes achieving 25,000 MW in operational capacity by 2030 and 50,000 MW by 2040.
SJVN is making substantial progress in its renewable energy projects and maintaining strong financial performance. With ambitious capacity targets and strategic investments, the company is well-positioned to continue its growth trajectory and contribute significantly to India's renewable energy landscape.
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Ladies and gentlemen, good day, and welcome to the SJVN Limited Q1 FY '25 Earnings Conference Call hosted by Elara Securities Private Limited. [Operator Instructions]. Please note that this conference is being recorded.
I now hand the conference over to Mr. Rupesh Sankhe from Elara Securities Private Limited. Thank you, and over to you, sir.
Good afternoon, everyone. On behalf of Elara Securities, we welcome you all for the Q1 FY '25 conference call of SJVN. I take this opportunity to welcome the management of SJVN represented by Mr. Sushil Sharma sir, Chairman and Managing Director; Mr. Soumendra Das sir, he's the Company Secretary; and Mr. [ Akhileshwar ] sir, is the Head of Department, Finance. We will begin the call with a brief overview by the management followed by Q&A session.
I will now hand over the call to Mr. Sushil Sharma sir for his opening remarks. Over to you, sir.
Okay. Thank you, and thanks, everybody, for giving me this opportunity. I'm extremely happy to share some major developments in Q1 of FY 2024, '25. Our Raghanesda solar power project, which is 100-megawatt, has been declared COD on 3rd of April 2024. Project -- however, project was commissioned in previous quarters in the state of Gujarat with the capacity to produce 252 million units of energy per annum. The power from this solar project is being sold to Gujarat Urja Vikas Nigam Limited.
Another milestone achieved in the month of June was the completion of heading excavation of 11.8-kilometer-long head race tunnel of Arun-3 hydroelectric project in Nepal. In Buxar thermal power project, power [indiscernible] system is ready and for startup power, 400 kV Buxar-Naubatpur line has been charged in the month of May 2024. We, as REIA, issued a letter of awards, 7 numbers, for total capacity of 1,500 megawatts for wind, solar hybrid power projects.
I'm also happy to share some recent development in current quarter as well. We have recently commissioned 90-megawatt Omkareshwar floating solar project on 8th of August 2024 in the state of Madhya Pradesh with the capacity to generate 196 million units of energy per annum. The project is situated in Omkareshwar Floating Solar Park, for which agreement for selling of power has already been signed with Rewa Ultra Mega Solar Limited and MP Power Management Company Limited.
Thus, in terms of the latest addition in operating assets, 90 megawatts more power has been added which will add approximately INR 64 crore revenue per year. With the commissioning of this project, our total installed capacity of SJVN now stands at 2,466.50 megawatt. Further, in major development, the Cabinet Committee on Economic Affairs, CCEA, chaired by honorable Prime Minister of India has approved an investment of INR 5,792.36 crore for 669 megawatts Lower Arun Hydroelectric Project at a levelized tariff of INR 4.99 per unit. The project will be implemented through SJVN Lower Arun Power Development Company Private Limited, SLPDC, a wholly-owned subsidiary of SJVN Incorporated in Nepal.
We are also excited to inform that government of Mizoram has allotted Darzo Lui PSP, 2,400 megawatt, to SJVN and with this allocation, first pump storage project is added in the portfolio of SJVN. The Darzo Lui Pump Storage Project with an installed capacity of 2,400 megawatts is set to be developed across Darzo Nallah, a tributary of the Tuipui River.
Also, we are happy to highlight our power generation achievements in the current financial year. Our prestigious 1,500-megawatt Nathpa Jhakri hydropower station recorded highest ever monthly generation of 1,222.170 million units during July 2024 since it's commissioning in 2004. Also, total generation for all official projects during the month of July '24 is 1,654.207 million, which is also highest ever monthly generation. Our all 3 hydro plants that is NJHPS, RHPS and Naitwar Mori hydropower station have achieved their highest generation in a single day ever since their commissioning. So giving you a brief of our projects, as on date, 12 projects of 2,466.5 megawatts and 2 transmission lines are under operation, 4 hydro projects of 1,558 megawatts and 1 thermal power project of 1,320 megawatts and 11 solar projects of 1,950 megawatts are under construction.
We are excited to inform that SJVN Green Energy Limited, a wholly-owned subsidiary of SJVN, has signed MOU with AM Green Ammonia, India, Private Limited. The platform shall be developed in 2kV, starting with a capacity of 1 million tons per annum and ramping help capacity to 5 million tons per annum by 2030.
In the recent past, Government of India has launched PM Surya Ghar Muft Bijli Yojana which aims to provide free electricity to 1 crore households in India. We are extremely happy to share that towards this scheme, SJVN has been allotted 3 states: Himachal Pradesh, Punjab and Arunachal Pradesh. SJVN has also been assigned the responsibility of installation of rooftop solar system on government buildings and 18 ministries, which have been allocated to us in this regard. As far as progress is concerned, process of empanelment of vendors has already been initiated.
You must also be aware that SJVN has been listed as one of the renewable energy implementing agencies, REIA, by Ministry of New and Renewal Energy, MNRE, to meet the 500-gigawatt target by 2030.
In financial year 2024, '25 for June ending quarter 1, we have achieved 100% target as SJVN has floated tenders of 4.8 gigawatts. Overall, SJVN has floated tenders of 4.8 gigawatt out of targeted 10.8-gigawatt capacity in a financial year '24 and '25. I am happy to share that SJVN has been conferred with Gold Award at 16th Exceed CSR 2024 for outstanding achievements in corporate social responsibility in power sector category. I once again reiterate that SJVN is moving forward to achieve our vision of installing 25,000-megawatt portfolio in operation by 2030 and 50,000 megawatt by, 2040.
With this, I close my opening remarks. And thanks to all for listening me patiently.
Sir, shall we start question-and-answer session?
Yes, mam.
[Operator Instructions] The first question is from the line of Mohit Kumar from ICICI Securities.
Congratulations on a very good set of numbers. My first question is, sir, are you looking to do a fund raise in the SJVN...
Can you again repeat the question? I'm not able to...
Are we looking to raise funds in the SJVN renewables arm in this fiscal?
Yes, we are diluting our stakes in our Green Energy, SGEL, by 20%.
Subject to the approval of...
Subject to approval of [indiscernible] and DIPAM.
Understood. My second question is on this, sir, do we have the -- I think you mentioned about the RE pipeline. Is it possible to give us a single consol number in terms of how much is operational, how much is under construction, how much is the capacity where we are L1, and which is...
Let me explain. We have 3 numbers of hydro projects in operation, 9 numbers renewable and total 12 numbers of projects, plus 2 transmission lines, totaling 2,466.5 megawatts. And under construction, 4 numbers of hydro projects, 1,558 megawatt. Thermal, 1 number, 1,320 megawatt. Renewable, 11 numbers, 1,958 megawatts, totaling 16 projects and 1 transmission line which comes out to be 4,836 megawatt. And I think I've answered -- your question satisfactorily.
Any RE capacity in the pipeline, sir? This is the capacity which is under construction, right? Is there anything which is -- in which we're L1 and which is not part of this portfolio?
Sir we have a long-term plan of adding 49,499 megawatt of renewable portfolio including every hydro and thermal and is particularly leveled, 25,777 megawatt.
My last question is, can you give a timeline for the Buxar and Nepal and when are you expecting the commissioning?
See 1 unit of Buxar thermal plant will come in this financial year, and second unit next financial year. Nepal, as I have already said in my last interaction with your kind self, around 3 -- we are targeting the Q3 of next year.
Q3 of next year, Q3 FY '26.
2025.
'25, so this fiscal. This December.
No, quarter 3 of '25, '26.
The next question is from the line of Mohit Surana from Monarch Network Capital Limited.
First of all, congratulations for a good set of results. A couple of questions. One, the blended tariff for this quarter is only INR 2.60 per unit. That's around 17% lower than what it was in the Q1 of the prior year. Any reasons for that? I understand it could be because of the higher generation, but if there is generation higher than the design capacity, then what's the rate at which we sell that excess power? That's one -- question number one.
Second, if you can give some thoughts on the fund raise? How much in terms of the amount that you are looking to raise through a stake dilution of 20%?
See, as far as revenue from operations in Q1 is concerned, our revenue from operations in Q1 '24, '25 is INR 831.73 crores against Q1 last year, INR 664.62 crores. And Q1 profit after tax is INR 327.15 crores against last year's Q1 of INR 270.20 crores.
And second question...
And second question, you have asked the fundraising stake sale. So we are targeting INR 2,000 crores through dilation of SJVN stake in our wholly-owned subsidiary, SJVN Green Energy Limited in '24, '25 subject to approval from regulatory authority, DIPAM, [indiscernible] and Ministry of Power.
Sir, with respect to the first question, I was indicating about the tariffs. Our tariff this time has been lower compared to the last year.
Let me just clarify that tariff is different for different projects. It cannot be average out -- we cannot average out tariff of all the projects. Say, for example, Nathpa Jhakri tariff is different, Rampur tariff is different and other tariff is different. So it cannot be an average-out tariff of all the projects. It is different for different projects.
Understood. Sir, my follow-up question would be, any update on your JV with IOC? Last time, I think you mentioned about the green energy projects that can be taken up in the joint venture?
Yes, renewable energy...
We have -- our -- this joint venture with Assam Energy Renewable Limited for 1,000 megawatt, development of solar projects in Assam only.
The next question is from the line of [ Vipul Kumar Anupchand Shah ] from Sumangal Investment Consultants Private Limited.
Am I audible, sir?
Yes, sure.
So my question is what is our current debt at consolidated level? And what will be the peak debt because we are adding a lot of capacity, and our cash flow is not going to increase in a proportionate way. So what is the consolidated debt? And what is the trajectory of consolidated debt over next, say, 2 years -- 2, 3 years?
Sir, presently, total debt at consolidated basis is at approximately INR 21,000 crores. And for financing the upcoming projects, we are planning to -- we are planning to pay securitization of our assets, approximately INR 2,000 crores of Nathpa Jhakri -- not Nathpa Jhakri, Rampur hydro projects -- Nathpa Jhakri hydro projects.
No. My question is we are executing a lot of projects. So for that, we will have to raise a lot of debt, so what will be debt trajectory over the next 2, 3 years? That is my question, sir.
We have estimated that to be approximately INR 6,500 crores in the next 2 years.
Addition of INR 6,500 crores?
Addition of INR 6,500 crores.
You said it is INR 21,000 crores, right now, right, sir?
It is INR 21,000. It will be approximately INR 28,000 crores by the end of next...
And all our renewable projects are in SJVN Limited, or they all are under SJVN Green Energy?
SJVN Green Energy.
All renewable, solar and wind everything is under -- okay. So can you share the financials for the SJVN Green Energy for this quarter, sir?
This quarter, total revenue from operation is INR 41 crores and profit is approximately INR 29 crores.
Revenue is INR 41 crores and profit is INR 29 crores.
Yes, it is due to some other income, interest income is also there.
Okay. And you said our total capacity is 2,440 megawatts, right sir, right now?
2,466.5 megawatts.
Yes. So what will be the capacity at the end of this financial year, I mean, which projects are going to be operational in the next 6 to 8 months?
Our total projects we are targeting by the end of this financial year 2,638 megawatts.
So 2,465 will become 2,638 at the end of March.
Plus.
So that will be in addition to -- 2,638 in addition to 2,466.
[indiscernible] over 5,000 megawatts all together.
At the end of the financial year, right?
Yes, yes, yes.
Okay. So generations will also increase proportionately from next financial year, right, sir?
Sure.
The next question is from the line of Ragini Pande from Elara Securities Private Limited.
Sir, what was the incentive income in Q1?
Incentive.
Incentive is INR 65 crores, that is on UI and capacity incentive.
Okay. And what is the plant availability factor?
Approximately...
Plant availability factor for Nathpa Jhakri, it was 104.94%. And for Rampur it is 104.832%.
Okay. And what will be your revenue guidance for this fiscal and next fiscal, if you can share?
Our revenue for fiscal year is approximately INR 3,000 crores.
INR 3,200 crores.
INR 3,200 crores.
This is for fiscal '26?
'25.
Okay. And sir, guidance for regulated equity, can you share?
Regulatory -- hello?
Regulated equity.
Please repeat your question.
Sir, what will be the guidance for your regulated equity?
Basically, related equity is only for hydro sector, not for renewal sector. Renewal, the price is fixed. [ After the ] bid we will take the project basically. There is no regulated equity, we are financing the project at the 80-20 debt equity ratio.
The next question is from the line of Mohit Kumar from ICICI Securities.
Sir, what was the cost of the Omkareshwar Solar Floating project? And did I hear correctly that you said your EBITDA -- revenue contributions from this [ project ] is INR 64 crores per annum.
Yes, Mr. Mohit, can you just please speak a bit loudly. Your voice is a bit slow.
Yes, sir. What was the cost of Omkareshwar Solar Floating project?
It is INR 649 crores.
And the EBITDA estimate, what is the EBITDA expectation for this power plant, sir?
EBITDA -- basically, revenue -- expected revenue is approximately INR 64 crores. I mean this project EBITDA will be roughly INR 10 crores.
EBITDA will be INR 10 crores?
Because revenue is approximately INR 64 crores.
EBITDA should be higher, sir. If your revenue is INR 64 crores, EBITDA should be around INR 55 crores, right?
No, basically it is...
You can put your questions through our...
Mail.
Mail and we will reply properly. I think it won't be proper to just guess on everything. We will come out...
Exact figures.
Exact figures.
Understood. My second question is on this solar rooftop. Sir, have you launched the scheme already? And when you select the vendor, and how do...
We are in the process of finalizing the vendors.
And what is the capacity you're targeting, sir?
Target -- I'll come out with you. You please put your question in the e-mail, and I'll reply you properly...
The figure is not here.
The figure -- I cannot see how much capacity...
Are you looking to award any PSP project for EPC in this particular fiscal, sir? PSP or hydro?
No, no. We have been just allotted PSP in Mizoram for 2,400 megawatts for which DPR is under -- preparation of DPR is under progress. Once DPR is prepared, finalized, then we will start the construction activities.
Sir, any other hydro project where the -- where you expect to commence the construction?
On the Nepal projects, 669, CCA clearance has been given accorded by our CCA and we'll shortly award in next 2, 3 months, we'll try to award this work -- civil work.
The next question is from the line of Vishal Periwal from Antique Stock Broking.
One, maybe a bit of clarification. You might have repeated this. So this 2,638 megawatts that we plan to add this year, what is the breakup between hydro and renewable based power plant in this?
Just a minute, I'll give you the complete breakup.
Or maybe if the plant-wise details are there, if you can share it.
Yes, yes. You see Buxar thermal Power Plant, 660 megawatts; Bagodara solar power plant, 70 megawatt; [ Bikaner ] 500 megawatts, [ Bikaner ] again Phase 3 and 4, 500 megawatts. This Omkareshwar, I already told you that 90 megawatts. PSP in solar power plant in Punjab, 100 megawatts; floating solar power plant in Nangal in the dam of BBNB is 15 megawatts. And BBNB ground-mounted solar power plant is 18 megawatt. GUVNL Phase XIII solar power plant, Gujrat, 100 megawatts. GUVNL Phase XIV solar power plant, Gujrat, 260-megawatt. GUVNL Phase XVII, Khavda solar power plant, Gujarat, 200 megawatt. Jamui solar power plant in Bihar, 125 megawatts, so -- 2,638.
Okay. So if one has to understand, in this -- the thermal is only one, right? The Buxar.
Yes. Second unit will be in next financial year.
Okay. So just to clarify it. So in this 2,638, 660 is Buxar, which is thermal and remaining is -- I mean the...
Renewables. All renewables.
Okay. There's no hydro power plant, right? In this?
No, no.
Okay. Got it. And similarly, sir, is it possible to share for FY '26 also? What is our commissioning target that we are seeing based on the current project readiness. Anything that you can share?
Let me put it -- Arun-3 hydropower project, 900 megawatt, in Nepal. Dhaulasidh hydropower project, 66 megawatt. Buxar thermal power plant, 660 megawatt. GUVNL Phase V wind power project, 100 megawatt. Solar project in Assam, 70 megawatt. Solar project in Assam from APDCL, 50 megawatt. Wind power projects from SECI, 100 megawatt. Wind power projects from SECI, 200 megawatt. Solar projects and Assam from APDCL, 200 megawatts. RVUNL solar power project that is 100 megawatts. Then GUVNL Phase XXII, 200 megawatt. Banka solar project in Bihar, 75 megawatt. Then solar power project in Maharashtra, Phase VII, 200 megawatt. Solar power project in Maharashtra, 200 megawatt. Letter of intent from PSPCL, we have already got it, 200 megawatt. LOI from PSPCL anywhere in India, 1,000 megawatt. Solar projects in Maharashtra under Mukhyamantri Saur Krushi Vahini Yojana, 1,352 megawatts, which is totally total 5,673 megawatt.
Okay. So this is our current plan for '26 commissioning, right, sir?
'26 commissioning.
Okay. Okay. And in this -- I mean like just -- so in terms of coal base is only one, 660, hydro is some totals to what, sir, in this 5,673?
900.
966.
900, Arun and 66, Dhaulasidh.
Okay. Got it. And remaining is renewable. Got it. And then this is just a repetition maybe, the addition of debt, which you mentioned from INR 21,000 crores to addition of INR 6,500 crores. So this is -- we are seeing by the end of FY '25.
Yes, you're right.
Okay. Got it. Okay. And if in FY '25 addition, the -- is there any cost plus based power plant, Buxar is a cost plus? Or how exactly it is structured?
Yes, it's on [ CRC ] rates.
Cost plus.
[ CRC ] rates, cost plus.
Okay. Okay. And remaining is it fair to say they are on the competitive bid the FY '25 commissioning?
They are on competitive bid.
Okay. Got it. And similarly, for FY '26 also, the 5,673-megawatt total that we plan to add, Arun and then one more that hydropower plant you mentioned -- it is on cost plus, right?
Yes, yes cost plus.
[indiscernible] is not cost plus, which is our merchant power plant.
Complete merchant?
Merchant, yes.
Okay. Okay. And sure, I think that's -- and anything maybe in FY '27, also, have you any addition based on....
If you send the mail and we will come...
Vishal, we'll get back to you later on. If you put a query on mail so that I will be able to clear your queries, right?
Sure sir.
Ladies and gentlemen, due to time constraint, we will now take our last question from the line of [ Vipul Kumar Anupchand Shah ] from Sumangal Investment Consultants Private Limited.
Sir one small suggestion if we can put a presentation for all the projects which are being added in this financial year and next financial year, for which we have already given the details in a tabular form, it will be of great help. It should include all the cost of the project, date of commercial operations.
Yes, we will add by cost. You give us a mail. We will give you complete details.
What is my request is why don't you put a presentation on your own website. So it will be helpful to everybody. You don't have to reply to repeated mails, sir. That is my request.
We will consider your request, we will consider your request.
I now hand the conference over to Mr. Rupesh Sankhe for closing comments.
Yes. So we thank SJVN management for giving us an opportunity to host this call. We also thank all the investors and analysts for joining this call. Thank you.
Thank you. Thank you, everybody. Thank you. Thank you for patient hearing from this side.
Thank you very much.
Thank you very much. On behalf of Elara Securities Private Limited, that concludes the conference. Thank you for joining us, and you may now disconnect your lines.