Ladies and gentlemen, good day, and welcome to the SJVN Limited Q1 FY 2025 earnings conference call, hosted by Elara Securities Private Limited. As a reminder, all participant lines will be in a 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 star then zero 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.
Good afternoon, everyone. On behalf of Elara Securities, we welcome you all for the Q1 FY 2025 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, is the 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.
Okay. Thank you, and thanks, everybody, for giving me this opportunity. I'm extremely happy to share some major developments in Q1 of FY 2024-2025. Our Raghanesda Solar Power Project, which is 100 MW, has been declared COD on third of April 2024. Project, however, was commissioned in previous quarters in the state of Gujarat with a 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-kilometer-long headrace tunnel of Arun-3 Hydro Electric Project in Nepal.
In Buxar Thermal Power Project, power erection system is ready, and for start of power, 400 kV Buxar-Mau line has been charged in the month of May 2024. We as REIA issued letter of award, 7 numbers, for total capacity of 1,500 MW 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 MW Omkareshwar Floating Solar Project on eighth of August 2024, in the state of Madhya Pradesh, with a 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 has been added, which will add approximately INR 64 crore to our revenue per year. With the commissioning of this project, our total installed capacity of SJVN now stands at 2,466.50 MW. Further, in major development, the Cabinet Committee on Economic Affairs, CCEA, chaired by Honorable Prime Minister of India, has approved the investment of INR 5,792.36 crore for 669 MW Lower Arun Hydro Electric 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 2,400 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 2,400 MW, is set to be developed across Darzo Lui in a tributary of Tuipui River. Also, we are happy to highlight our power generation achievements in the current financial year. Our prestigious 1,500 MW Nathpa Jhakri Hydro Power Station recorded highest ever monthly generation of 1,222.170 million units during July 2024, since its commissioning in 2004.
Also, total generation for all operational projects during the month of July 2024 is 1,654.207 million units, which is also highest ever monthly generation. Our all three hydro plants, that is, 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 eleven 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, 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, MNRE, to meet the 500 gigawatt target by 2030. In financial year 2024-2025, for June ending quarter one, we have achieved 100% target as SJVN has floated tenders of 4.8 gigawatt. Overall, SJVN has floated tenders of 4.8 gigawatt out of targeted 10.8 gigawatt capacity in financial year 2024-2025.
I am happy to share that SJVN has been conferred with Gold Award at sixteenth Exceed CSR Awards 2024, for outstanding achievements in corporate social responsibility in power sector state category. I once again reiterate that SJVN is moving forward to achieve our vision of installing 20,000-25,000 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 to me patiently. Thank you.
So shall we start, Q&A session?
Yes, ma'am.
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Mohit Kumar, from ICICI Securities. Please go ahead.
Thanks, sir, and congratulations on a very good set of numbers. My first question is, sir: are you looking to do a fundraise in the SJVN RE arm?
Can you again repeat the question? I'm not able to-
Are you 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 the-
Subject to approval of NITI Aayog and DIPAM.
Understood. My second question is on this, do you have the, I think you mentioned about the RE pipeline. Is it possible to give us a single solid 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, yeah? Is it possible-
Yes, yes, yes.
Okay.
Let me explain. We have three numbers of hydro projects in operation, nine numbers renewable, and total 12 numbers of projects, plus 2 transmission lines, totaling 2,466.5 megawatts. Under construction, four numbers of hydro projects, 1,558 megawatt thermal, one number, one thousand three hundred and twenty megawatt; renewable, 11 numbers, 1,958 megawatt, totaling 16 projects and one transmission line, which comes out to be 4,836 megawatt. And I think I have answered y our question satisfactorily.
Any RE capacity in the pipeline, sir? This is the capacity which is under construction, right? Is there anything which is, which is L1 and which is not part of this, this portfolio?
Sir, we have, we have a long-term plan of adding 49,499 megawatts of r enewable portfolio.
Yes, thank you.
Including every hydro and thermal, and particularly renewable, 25,777 MW.
Yes. My last question is, sir, can you give the timeline for the Buxar and Nepal, when we are, when we are expecting the commissioning?
You see, one unit of Buxar thermal plant will come in this financial year. Second unit in next financial year, in financial year. Nepal, as I, as I have already said in my last interaction with your kind self, kind self, Arun-3, we are targeting the Q3 of next year.
Q3 of next year, Q3 of 2026, right?
2025 .
2025. So this fiscal, by December.
No, no. Q3 of 2025, 2026.
2026.
That means 2026.
Understood, sir. Thank you, and all the best, sir. Thank you. Thank you.
Thank you very much. The next question is from the line of Mohit Surana from Monarch Networth Capital Limited. Please go ahead.
Sir, first of all, congratulations for the good set of results. A couple of questions.
Yes, please.
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 mean, I understand it could be because of the higher generation, but if, if there is a 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 fundraise, how much, in terms of the amount that you are looking to raise, through a stake dilution of 30%?
See, as far as revenue from operations in Q1 is concerned, our revenue from operation in Q1 2024-2025 is INR 831.73 crores, against Q1 last year, INR 64.62 crores. Q1 profit after tax is INR 327.15 crores, against last year's Q1 of INR 270.20.
Second question, sir...
And, uh-
Second question.
Second question you have asked the delay, this q uestion of fundraising stakes, stake sale. So we are targeting INR 2,000 crore through dilution of SJVN stake in our wholly owned subsidiary, SJVN Green Energy Limited, in 2024-2025, subject to approval from regulatory authority, DIPAM and other NITI Aayog and Ministry of Power Ministry of Power.
Right, sir. 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.
Let me just verify that tariff is different for different projects. It cannot be averaged 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 averaged-out tariff of all the projects. It is different for different projects.
Thank you. Understood. Sir, now, 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.
Yeah, Assam Renewable Energy.
We, we have our this joint venture with Assam Renewable Energy Limited for 1,000 MW development of projects, solar projects in, Assam. Assam only.
Understood. Thank you, sir.
Thank you. Thank you very much.
Thank you, Mr. Surana. The next question is from the line of Vipul, Vipul Kumar Anupchand Shah from Sumangal Investment Consultants Private Limited. Please go ahead.
Hello?
Hello.
Yeah. Am I audible, sir?
Yes, sure, sir.
Yeah. So my question is, what is our current debt at consolidated level, and what will be the peak date? 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, say, 2-3 years?
Yes. Sir, sir, presently, total debt as consolidation was approximately INR 21,000 crore.
Okay.
For financing the upcoming projects, we are planning to, we are planning to pay securitization of our assets, approximately INR 2,000 crore of Nathpa Jhakri, no, Nathpa Jhakri and Rampur Hydro Project, Nathpa Jhakri Hydro Projects.
No, no. My question is, we are executing a lot of projects, so for that we'll have to raise a lot of debt. So, so what will be the debt trajectory over the next 2, 3 years? That is my question, sir.
Estimated debt is approximately INR 6,500 crore in next two years.
Addition of INR 6,500 crore?
Yeah, addition, addition of INR 6,500 crore.
You said it is 21,000 right now, right, sir?
1,000, it will be approximately INR 28,000 crore by the end of next year.
INR 28,500 crore. Huh. And all our all our renewable projects are in SJVN Limited, or they all are under SJVN Green Energy?
SJVN Green Energy.
All, all green, 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 crore, and profit is approximately INR 29 crore.
Revenue is INR 41 and profit is INR 29?
Yes. It is due to some other income, interest income is also, there, there.
Okay. And, you said our total capacity is 2,400 MW, right, sir, right now?
2,466.5 MW.
Yeah. So what will be the capacity at the end of this financial year? Means which next 6-8 months?
Our total projects we are targeting by the end of this financial year, 2,638 MW.
2,465 will become 2,638 at the end of March.
Plus.
Plus.
We are-
So there will be-
2,638, in addition to 2,466. It will be almost 5,000 MW altogether.
At the end of the financial year, right?
Yeah, yeah, yeah, yeah.
Okay. So, generations will also increase proportionately from next financial year, right, sir? Sure. Okay, I have several questions, but I'll rejoin the queue. Thank you.
Okay.
Thank you very much. The next question is from the line of Ragini Pande, from Elara Securities Private Limited. Please go ahead.
Yeah. Sir, what is the incentive income in Q1?
Incentive. Incentive is INR 65 crore, 65 crore. That is UI and incentive.
Okay. And what is the plant availability factor?
Plant, just one moment. Approximately, p lant 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 next fiscal year is approximately INR 3,000-
Uh-huh.
Approximately INR 3,000 crore.
INR 3,200.
INR 3,200 crore.
This is for, which fiscal? 2026?
2025.
2025.
Okay, 2025. Okay. Sir, guidance for regulated equity, can you share?
Reg, regulatory? Hello.
Regulated equity.
Please repeat your question.
Sir, what will be the guidance for your regulated equity?
Regulated equity.
Basically, regulated equity is only for hydro sector, not for renewable, renewable sector. Renewable, the price is fixed at the price we will take the project, basically. Then we go regulated equity, we are financing the project at the 80/20 debt equity, debt equity ratio.
Okay. Yeah. Thank you.
Thank you very much. The next question is from the line of Mohit Kumar from ICICI Securities. Please go ahead.
Sir, what was the cost of the Omkareshwar Floating Solar Project? And did I hear correctly that you said your EBITDA revenue contribution from this particular project is INR 64 crore per annum?
Yeah, Mr. Mohit, can you just please, speak a bit loudly? Your voice is a bit low.
Yes, sir. What was the cost of Omkareshwar Solar Floating project?
It is INR 649 crore.
And the EBITDA estimate, what is the EBITDA expectation from the particular power plant, sir?
The EBITDA is approximately, basically revenue, expected revenue is approximately INR 64 crore. I mean, this project, EBITDA will be roughly 10, 10 crore.
EBITDA is INR 10 crore?
Team revenue is approximately INR 64 crore.
EBITDA should be higher, sir, no? Because if revenue INR 64 crore, EBITDA should be around INR 55 crore, right?
No, no, basically it is-
You can, you can put your questions through our Mail also. Mail, and we will reply properly.
I understand.
It won't be proper to-
Understand.
Just guess and everything. We will come out with the-
I will give exact figures. Exact figures.
Understood, sir. So my second question is on the solar rooftop. So have you launched the scheme already? And we selected the vendors, and how do we-
We are, we are in the process of finalizing the vendors.
What is the capacity you're targeting, sir?
Tell him, Kitna.
Target is our...
Eh? 10,000.
Ten thousand?
No, no. I, I'll come out with you. You please put your question in the email and I'll reply you properly.
Understood. Sir, what is the-
Figure is not yet.
I have not figured how much capacity is to be added.
Yes, sir. And, sir, 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 a PSP in Mizoram for 2,400 MW. For this, preparation of DPR is under progress. Once DPR is prepared, finalized, then, we will start the construction activities.
Any other hydro project where you expect to commence the construction?
Yes, Nepal, Nepal project, 669. The CCEA clearance has been given, accorded by our CCEA, and we will shortly award in next two, three months, we will, we will be, we'll try to award the this works, civil works, civil works.
...Understood, sir. Thank you, and all the best, sir. Thank you. Thank you.
Thank you very much. The next question is from the line of Vishal, Vishal Periwal from Antique Stock Broking. Please go ahead.
Hello.
Yes, sir. Thanks for the opportunity. One, maybe 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 base power plant in this?
Just a minute, just a minute, just a minute. I'll give the complete breakup.
Or maybe if the plant-wide details are there, if you, if you can share it.
Yes, yes, yes. Yes, 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 solar power plant, 100 MW. 14 solar power plants in Nangal, in the dam of BBMB is 15 MW, and BBMB ground-mounted solar power plant is 18 MW. GUVNL phase 13 solar power plant Gujarat, 100 MW. GUVNL phase 14 solar power plant Gujarat, 260 MW. GUVNL phase 17, Khavda Solar Power Plant, Gujarat, 200 MW. Jamui Solar Power Plant in Bihar, 125 MW, comes out to be 2,638.
Okay. So if, 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, so in this 2,638, 660 is Buxar, which is thermal, and remaining is, I mean-
Renewable. All renewables.
Okay. There's no hydro power plant, right?
No, no, nothing. No hydro.
Okay, got it. And similarly, sir, is it possible to share for FY 2026 also, what is our commissioning target that we are seeing based on the current, the project readiness and anything that you can share?
Let me put it, Arun-3 hydropower project, 900 MW in Nepal. Dhaulasidh hydropower project, 66 MW. Buxar thermal power plant, 660 MW. GUVNL phase five, wind power project, 100 MW. Solar project in Assam, 70 MW. Solar project in Assam from APDCL, 50 MW. Wind power projects from SECI, 100 MW. Wind power project from SECI, 200 MW. Solar projects in Assam from APDCL, 200 MW. RUVNL solar power project, Rajasthan, 100 MW. Then, GUVNL phase twenty-two, 200 MW. Banka solar project in Bihar, 75 MW. Then solar power project in Maharashtra, phase seven, 200 MW. Solar power project in Maharashtra, 200 MW. Letter of intent from PSPCL, we have already got it, 200 MW. LOI from PSPCL, anywhere in India, 1,000 MW.
Solar projects in Maharashtra, under Mukhyamantri Saur Krishi Vahini Yojana, 1,352 MW, which is total 5,673 MW.
Okay. So this is our current plan for 2026 commissioning, right?
Yes, sir. 26 commissioning.
Okay, okay. And in this, I mean, like, not just... So, in terms of, coal base is only 1,660. Hydro, in sum totals to what, sir, in this 5,673?
900. 966. 966.
What is Arun? 9,666.
Arun and 66 Dhaulasidh.
Okay, got it. Got it. And the remaining is renewable.
Yes, remaining-
Got it. And then this, just a repetition, maybe the addition of debt, which you mentioned from INR 21,000 crore to addition of INR 6,500 crore. So, this is, we are seeing by the end of FY 2025?
Yes. Yeah. You are right.
Okay. Got it. Got it. And, if in FY 2025 addition, is there any cost plus based power plant? Buxar is a cost plus or how exactly is structured?
Yes, it's on CRC rates.
Cost plus. Cost plus.
CRC rates.
Okay. Okay. And the meaning, is it fair to say, they are on competitive bid, the FY 2025 commissioning?
They are on competitive bid.
Okay, got it. And similarly for FY 2026 also, the 5,673 MW total that we plan to add, Arun and Buxar, Arun-3 and then one more, that hydropower plant you mentioned, it is not on cost plus, right?
Yes, yes. Cost plus.
Arun is not cost plus.
This is our merchant power plant.
It is a complete merchant.
A merchant, yes.
Okay. Okay. And, sure, I think that's, that's... And anything, maybe, in FY 27 also, have we any addition based on this-
Please send us the mail and we will come.
Vishal, Vishal, we will 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, sure, sure, sure, sure, sure. I mean, I mean, thank you so much, sir. I think you tried to explain.
Thank you. Thank you for giving us the opportunity.
Yeah. Yeah, right. Okay. Thank you, sir.
Thank you very much. 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. Please go ahead.
Hi, sir. Thanks for the opportunity again. 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, date of commercial operation.
We will add the cost. You give us a mail, we will give you a complete-
No, no, ma'am. 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.
Thank you, sir.
Thank you. Thank you.
Thank you very much. I now hand the conference over to Mr. Rupesh Sankhe for closing comments.
Yeah. So we thank SJVN management for giving us an opportunity towards this call. We also thank all the investors and analysts for joining this call. Thank you so much.
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.
Thank you, ma'am. Thank you, ma'am.