SJVN — earnings call
The transcript as filed. Every paragraph is addressable: its link names the page and the position it sits at in the call.
Prepared remarks
DIRECTOR, SJVN LIMITED · MR. SOUMENDRA DAS – COMPANY SECRETARY, SJVN
MR. SOUMENDRA DAS – COMPANY SECRETARY, SJVN
LIMITED · MR. SANJAY SURI – HEAD (DEPARTMENT FINANCE),
MR. SANJAY SURI – HEAD (DEPARTMENT FINANCE),
Moderator · Conference Operator
MR. RUPESH SANKHE – ELARA SECURITIES
SJVN LIMITED · MODERATOR:
August 16, 2024
Moderator · Conference Operator
Ladies and gentlemen, good day and welcome to the SJVN Limited Q1 FY25 Earnings Conference Call hosted by Elara Securities Private Limited.
As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes.
Should you need assistance during the conference call, please signal an operator by pressing “*” then “0” on your touchtone phone.
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.
Rupesh Sankhe
Good afternoon, everyone.
On behalf of Elara Securities, we welcome you all for the Q1 FY25 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 is the Company Secretary and Mr. Sanjay Suri sir - Head of Department Finance.
We will begin the call with the 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.
Sushil Sharma: · You see, one unit of Buxar Thermal Plant will come in this Financial Year and the second unit
Thank you and thanks everybody for giving me this opportunity.
I am extremely happy to share some major developments in Q1 of FY2024-25.
Our Raghanesda Solar Power project, which is 100 MW, has been declared COD on 3rd of April 2024.
However, project was commissioned in previous quarter 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 with the completion of heading excavation of 11.8 km long head-race tunnel of Arun-3 Hydro Electric Project in Nepal.
In Buxar Thermal Power project, power reduction system is ready and for start-up power 400 KV Buxar Naubatpur line has been charged in the month of May 2024.
We as REIA issued letter of award seven numbers for total capacity of 1,500 MW for wind, solar, hybrid power projects.
I am also happy to share some recent development in current quarter as well.
We have recently commissioned 90 MW 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 MW more power
SJVN LIMITED · MODERATOR:
August 16, 2024 has been added, which will add approximately Rs.64 to our revenue per year.
With the commissioning of this project, our total installed capacity of SJVN now stands at 2466.50 MW.
Further, in major development, the Cabinet Committee on Economic Affairs, CCEA, chaired by Honorable Prime Minister of India, has approved investment of Rs.
5,792.36 crores for 669 MW Lower Arun Hydroelectric Project at a levelized tariff of 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 2400 MW to SJVN and with this allocation first pumped storage project is added in the portfolio of SJVN.
The Darzo Lui pumped storage project with an installed capacity of 2400 MW is set to be developed across Darzo Nallah in a tributary of Tuipui river.
Also, we are happy to highlight our power generation achievements in the current Financial Year.
Our prestigious 1500 MW Nathpa Jhakri Hydro Power Station recorded highest ever monthly generation of 1222.170 million units during July 2024 since its commissioning in 2004.
Also, total generation for all operational projects during the month of July 24 is 1,654.207 million units, which is also highest ever monthly generation.
Our all three hydro plants that are NJHPS, RHPS, and Naitwar Mori Hydro Power 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 MW and two transmission lines are under operation.
Four hydro projects of 1,558 MW and one thermal power project of 1,320 MW and 11 solar projects of 1,950 MW 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 two phases, starting with a capacity of 1 million tons per annum and ramping up capacity to 5 million tons per annum by 2030.
In the recent past, the 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 three 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 Renewable Energy, MNRI, to meet the 500 GW target
August 16, 2024 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 GW.
Overall, SJVN has floated tenders of 4.8 GW out of targeted 10.8 GW capacity in Financial Year ‘2024 and 2025.
I am happy to share that SJVN has been conferred with Gold Award at 16th Exceed CSR Awards 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 MW portfolio in operation by 2030 and 50,000 MW by 2040.
With this, I close my opening remarks and thanks to all for listening me patiently.
Thank you.
Sushil Sharma: · You see, one unit of Buxar Thermal Plant will come in this Financial Year and the second unit
Including every hydro and thermal and particularly renewal 25,777 MW.
Mohit Kumar
My last question is, sir, do you think it is the timeline for Buxar and Nepal, when you are expecting the commissioning?
Sushil Sharma: · You see, one unit of Buxar Thermal Plant will come in this Financial Year and the second unit
You see, one unit of Buxar Thermal Plant will come in this Financial Year and the second unit in the next Financial Year.
Nepal as I have already said in my last interaction with your kind self, Arun-3, we are targeting the Q3 of next year.
SJVN LIMITED · MODERATOR:
August 16, 2024
Mohit Kumar
Q3 of FY26?
Sushil Sharma: · You see, one unit of Buxar Thermal Plant will come in this Financial Year and the second unit
25.
Mohit Kumar
So, this fiscal by December?
Sushil Sharma: · You see, one unit of Buxar Thermal Plant will come in this Financial Year and the second unit
No, Quarter 3 of 25-26.
Mohit Kumar
That means 26?
Sushil Sharma: · You see, one unit of Buxar Thermal Plant will come in this Financial Year and the second unit
Yes.
Moderator · Conference Operator
Thank you very much.
The next question is from the line of Mohit Surana from Monarch Networth Capital Limited.
Please go ahead.
Mohit Surana
A couple of questions, one, the landed tariff for this quarter is only Rs.
2.60 paisa per unit.
That is 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 a generation higher than the design capacity, then what is the rate at which we sell that excess power?
That is one question, number one.
Second, if you can give some thoughts on the fundraise how much in terms of the amount that you are looking to raise through a stake dilution of 20%?
Sushil Sharma: · You see, one unit of Buxar Thermal Plant will come in this Financial Year and the second unit
As far as revenue from operations in Q1 is concerned, our revenue from operation in Q1 FY24- 25 is Rs.
831.73 crores against Q1 last year, Rs.
664.62 crores.
And Q1 profit after tax is Rs.
327.15 crores against last year's Q1 of Rs.
270.20.
And second question you have asked the fundraising stake sale.
So, we are targeting Rs.
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 of DIPAMand Minister of Power.
Mohit Surana
Sir, with respect to the first question, I was indicating about the tariff.
Our tariff this time has been lower compared to the last year.
Sushil Sharma: · You see, one unit of Buxar Thermal Plant will come in this Financial Year and the second unit
Let me just clarify that tariff is different for different projects.
We cannot average out the 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 of all the projects.
It is different for different projects.
Mohit Surana
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?
SJVN LIMITED · MODERATOR:
August 16, 2024
Sushil Sharma: · You see, one unit of Buxar Thermal Plant will come in this Financial Year and the second unit
Our joint venture with Assam Energy Renewable Limited for 1000 MW development of solar projects in Assam only.
Moderator · Conference Operator
Thank you, Mr. Surana.
The next question is from the line of Vipul Kumar Anupchand Shah from Sumangal Investment Consultants Private Limited.
Please go ahead.
Vipul Kumar A. Shah
So, my question is what our current debt at consolidated level is 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 the next 2-3 years?
SJVN LIMITED · MODERATOR:
August 16, 2024
Vipul Kumar A. Shah
Revenue is 41 and profit is 29?
Sushil Sharma: · You see, one unit of Buxar Thermal Plant will come in this Financial Year and the second unit
2466.5 MW.
Vipul Kumar A. Shah
So, what will be the capacity at the end of this Financial Year?
Which projects are going to be operational in next 6-8 months?
Moderator · Conference Operator
Thank you very much.
The next question is from the line of Ragini Pande from Elara Securities Private Limited.
Please go ahead.
Ragini Pande
Sir, what was the incentive income in Q1?
SJVN LIMITED · MODERATOR:
August 16, 2024
Ragini Pande
This is for which Fiscal ‘26?
Moderator · Conference Operator
Thank you very much.
The next question is from the line of Mohit Kumar from ICICI Securities.
Please go ahead.
Mohit Kumar
What was the cost of Omkareshwar Solar Floating Project?
Sushil Sharma: · You see, one unit of Buxar Thermal Plant will come in this Financial Year and the second unit
I will come out with you, you please put your question in the email and I will reply you properly.
SJVN LIMITED · MODERATOR:
August 16, 2024
Sushil Sharma: · You see, one unit of Buxar Thermal Plant will come in this Financial Year and the second unit
No, we have been just allotted a PSP in Mizoram for 2,400 MW for which preparation of DPR is under progress.
Once DPR is prepared, finalized, then we will start the construction activities.
Mohit Kumar
Sir, any other Hydro project where you expect to commence the construction?
Sushil Sharma: · You see, one unit of Buxar Thermal Plant will come in this Financial Year and the second unit
Yes, Nepal project, 669.
The CCEA clearance has been given, accorded by our CCEA and we will shortly award in next 2-3 months, we will try to award the civil works.
Moderator · Conference Operator
Thank you very much.
The next question is from the line of Vishal Periwal from Antique Stock Broking.
Please go ahead.
Vishal Periwal
One, maybe a bit of clarification, you might have repeated this.
So, this 2,638 MW that we plan to add this year, what is the breakup between hydro and renewable based power plant in this?
Sushil Sharma: · You see, one unit of Buxar Thermal Plant will come in this Financial Year and the second unit
Just a minute, I will give the complete breakup.
Vishal Periwal
Or maybe if the plant wise details are there if you can share it?
Sushil Sharma: · You see, one unit of Buxar Thermal Plant will come in this Financial Year and the second unit
Yes.
You see, Buxar Thermal Power plant, 660 MW, Bagodara Solar Power Plant, 70 MW.
Bikaner 500 MW.
Bikaner again Phase-3 and 4, 500 MW.
This Omkareshwar, I have already told you that 90 MW.
PSPCL in solar power plant in Punjab, 100 MW.
Floating Solar Power plant in Nangal in the dam of BBMB is 15 MW and BBMB ground mounted solar power plant is 18 MW.
GUVNL Phase-XIII solar power plant Gujarat 100 MW.
GUVNL Phase-XIV solar power plant Gujarat 260 MW.
GUVNL Phase-17 Avaada solar power plant Gujarat 200 MW.
Jamui Solar Power Plant in Bihar, 125 MW, comes out to be 2,638.
Vishal Periwal
So, if one has to understand, in this, the thermal is only one, right, the Buxar?
Sushil Sharma: · You see, one unit of Buxar Thermal Plant will come in this Financial Year and the second unit
Yes, second unit will be in next Financial Year.
Vishal Periwal
So, just to clarify, so in this 2,638, 660 is Buxar which is thermal and remaining is, there any hydro in this?
Sushil Sharma: · You see, one unit of Buxar Thermal Plant will come in this Financial Year and the second unit
Renewable, all renewables.
Vishal Periwal
There is no hydropower plant, right in this?
SJVN LIMITED · MODERATOR:
August 16, 2024
Sushil Sharma: · You see, one unit of Buxar Thermal Plant will come in this Financial Year and the second unit
No, nothing.
Vishal Periwal
And similarly, sir, is it possible to share for FY26 also what is the commissioning target that we are seeing based on the current project readiness?
Anything that you can share?
Sushil Sharma: · You see, one unit of Buxar Thermal Plant will come in this Financial Year and the second unit
Let me put it, Arun-3 Hydro Power Projects, 900 MW in Nepal, Dhaulasidh Hydro Power Project 66 MW, Buxar Thermal Power 60 MW.
GUVNL Phase-5 Wind Power Project 100 MW.
Solar Project in Assam 70 MW.
Solar Project in Assam from APDCL 50 MW.
Wind Power Project from SECI 100 MW.
Wind Power Project from SECI 200 MW.
Solar Project in Assam from APDCL 200 MW.
RVUNL Solar Power Project, Rajasthan 100 MW.
Then, GUVNL Phase-22, 200 MW.
Banka Solar Project in Bihar, 75 MW.
Then, solar power project in Maharashtra, Phase-7, 200 MW.
Solar power project in Maharashtra, 200 MW.
Letter of intent from PSPCL.
We have already got 200 MW.
LOI from PSPCL anywhere in India 1000 MW.
Solar projects in Maharashtra under Mukhyamantri Saur Krushi Vahini Yojana 1352 MW which is total 5673 MW.
Vishal Periwal
So, this is our current plan for 26 commissioning.
Sushil Sharma: · You see, one unit of Buxar Thermal Plant will come in this Financial Year and the second unit
Yes sir, 26 commissioning.
Vishal Periwal
And in terms of coal base is only one 660.
Hydro is sum totals to what, sir, in this 5,673?
Sushil Sharma: · You see, one unit of Buxar Thermal Plant will come in this Financial Year and the second unit
Yes, remaining is renewable.
Vishal Periwal
And then this, just repetition maybe, the addition of debt which you mentioned from Rs.
21,000 crore to addition of Rs.
6,500 crore, so this is we are seeing by the end of FY25?
SJVN LIMITED · MODERATOR:
August 16, 2024
Vishal Periwal
And remaining, is it fair to say, they are on competitive bid, the FY25 commissioning?
Moderator · Conference Operator
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 Consultant Private Limited.
Please go ahead.
Vipul Kumar A. Shah
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 you 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 operation.
Sushil Sharma: · You see, one unit of Buxar Thermal Plant will come in this Financial Year and the second unit
We will consider your request.
Moderator · Conference Operator
Thank you very much.
I now hand the conference over to Mr. Rupesh Sankhe for closing comments.
Rupesh Sankhe
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 so much.
SJVN LIMITED · MODERATOR:
August 16, 2024
Sushil Sharma: · You see, one unit of Buxar Thermal Plant will come in this Financial Year and the second unit
Thank you.
Thank you for patient hearing from this side.
Moderator · Conference Operator
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.
Questions and answers
Moderator · Conference Operator
Thank you very much.
We will now begin the question-and-answer session.
The first question is from the line of Mohit Kumar from ICICI Securities.
Please go ahead.
Mohit Kumar
Are you looking to raise funds in the SJVN renewables arm in this fiscal?
Sushil Sharma: · You see, one unit of Buxar Thermal Plant will come in this Financial Year and the second unit
Yes, we are diluting our stakes in our Green Energy SGL by 20% subject to the approval of NITI Aayog and DIPAM.
Mohit Kumar
My second question is on this, sir, do we have to, I think you mentioned about the RE pipeline.
Sir, is it possible to give us a single console number in terms of how much is operational, how much is under construction, how much is the capacity where we are L1?