Release Date: February 09, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- SJVN Ltd (BOM:533206, Financial) has increased its installed capacity to 2,227 megawatts with the addition of two new projects.
- The company has commissioned the 175 megawatt Gurhah solar project and the 60 megawatt Naitwar Mori hydro project, adding approximately INR270 crore to annual revenue.
- SJVN Ltd (BOM:533206) is set to add 240 megawatts of renewable energy projects in the upcoming quarter.
- The Government of India has approved the formation of two joint ventures for renewable energy projects in Assam and Maharashtra.
- SJVN Ltd (BOM:533206) has secured a INR10,000 crore construction finance facility for its upcoming renewable energy projects from leading financial institutions.
Negative Points
- Generation from the main two hydro projects decreased by 13.36% and 12.79% due to low precipitation in the catchment areas.
- Revenue from operations decreased by 2.7% over the same period last year due to lesser generation from hydro projects.
- Profit after tax decreased by INR155.64 crores compared to the third quarter of the previous year.
- The company faces challenges with the HP water cess issue, which is currently subjudice in the High Court of HP.
- There is a delay in the commissioning of the Arun 3 project, now expected by February 2025, and the Buxar project, with the first unit expected by June 2024.
Q & A Highlights
Q: What is the total renewable portfolio under construction and how much is the capacity where SJVN is L1?
A: Our total renewable portfolio under construction is approximately 2,060 megawatts across 11 projects. We have won a total of 5.2 gigawatts in various projects, and we will provide the detailed list separately. (Geeta Kapur, Executive Chairman of the Board, Managing Director; Akhileshwar Singh, Chief Financial Officer, Director - Finance, Whole Time Director)
Q: What is the status of the Nepal hydro project and have you signed the PPA?
A: For the Nepal project, we have signed an agreement with PTC for the sale of power. We are expecting to sign a PPA for 50% of the power within a month, and the balance will be sold through a tender. (Geeta Kapur, Executive Chairman of the Board, Managing Director; Akhileshwar Singh, Chief Financial Officer, Director - Finance, Whole Time Director)
Q: What are your thoughts on the HP water cess issue?
A: The HP water cess issue is currently subjudice in the Honorable High Court of HP, and we are expecting a judgment soon. We are hopeful that the tax will not be levied as it is not in accordance with the current statute. (Geeta Kapur, Executive Chairman of the Board, Managing Director)
Q: What is the impact of poor snowfall on hydrogeneration this year?
A: There is an overall shortfall of 452.57 million units against our design energy of 8,964.49 million units. This is part and parcel of hydro projects, and we are hopeful of making up for it next year with reasonable snowfall. (Geeta Kapur, Executive Chairman of the Board, Managing Director; Akhileshwar Singh, Chief Financial Officer, Director - Finance, Whole Time Director)
Q: What are the revised project costs for Buxar and Arun 3?
A: The project cost for Buxar is approximately INR 11,000 crore, including general escalation. For Arun 3, the estimated project cost, including the transmission line, is between INR 8,500 crore to INR 9,000 crore. (Akhileshwar Singh, Chief Financial Officer, Director - Finance, Whole Time Director)
Q: What is the status of the rooftop solar initiative and its potential contribution to SJVN's revenue?
A: The government aims to add 40 gigawatts of rooftop solar capacity, and SJVN has been allocated three states. We expect around 4 to 5 gigawatts to fall under our portfolio. The modalities for implementation are yet to be finalized, which will help us determine the revenue and profitability. (Geeta Kapur, Executive Chairman of the Board, Managing Director; Akhileshwar Singh, Chief Financial Officer, Director - Finance, Whole Time Director)
Q: What is the regulated equity for the three hydro projects?
A: For Dhaulasidh hydroelectric project, the regulated equity is INR 138 crore. For Luhri hydroelectric project, it is INR 362 crore. For Sunni Dam, the regulated equity is INR 784 crore. (Geeta Kapur, Executive Chairman of the Board, Managing Director)
Q: What are the expected commissioning dates for the ongoing projects like Buxar, Arun 3, and Bikaner?
A: Buxar's first unit is expected by June 2024 and the next unit by September 2024. Arun 3 is expected by February 2025. Bikaner is expected to be fully commissioned by December 2024, with partial commissioning starting by September 2024. (Geeta Kapur, Executive Chairman of the Board, Managing Director; Akhileshwar Singh, Chief Financial Officer, Director - Finance, Whole Time Director)
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
