SJVN - SJVN LIMITED Share Price

Outlook by Management:
SJVN's management is focused on aggressive expansion, targeting 25,000 MW by 2030 and 50,000 MW by 2040. Key highlights include:

1. Capacity Expansion:

   • Current operational capacity: 2,466.5 MW.
   • Under construction: 4,936 MW (hydro, solar, thermal).
   • Buxar Thermal (1,320 MW): Unit 1 (660 MW) to commission by May 2025; full capacity by 2025.
   • Arun 3 Hydro (900 MW): Delayed to 2027 due to geological challenges.

2. Renewables Growth:

   • Solar: 1,000 MW Bikaner project delayed (module supply); 137 MW installed.
   • Pumped Storage (PSP): Signed MOUs for 6 GW (1,000 MW in Bihar, 5 GW in Rajasthan).

3. Financial & Operational Highlights:

   • FY25 Generation: 10,084 MUs (26% YoY increase).
   • Incentive Income: Rs.68.49 Cr in Q3.
   • Challenges: Rising interest/depreciation costs due to expansion.

4. Strategic Initiatives:

   • PM Surya Ghar Scheme: Leading rooftop solar in 3 states.
   • Battery Storage: 1,500 MWh target.
   • REIA Role: Tendered 7.5 GW (10.8 GW target) for MNRE's 500 GW by 2030.

5. Future Plans:

   • FY26 Targets: Commission ~3 GW (Buxar thermal, solar).
   • Listing: SJVN Green Energy likely in FY26.
   • Tariffs: Pumped storage projects at ~Rs.9.39/kWh.

Major Risks: Delays in PPAs/PSAs, land acquisition, and module supply. Management remains confident in resolving bottlenecks and achieving growth through renewables and strategic partnerships.

1. Question: "First question, is the total renewables portfolio, which you had won, I think where you participated and one is around 7 gigawatt, right? While you just mentioned that the under construction portfolio is 2.2 gigawatt. So where is the gap? Is it there's a gap in signing the PPA? Is the PPA signing getting delayed?"
Answer: The gap arises due to delays in finalizing Power Sale Agreements (PSAs) with DISCOMs before signing PPAs with developers. SJVN is coordinating with MNRE and state utilities to expedite PSA approvals, expecting resolution within two months.

2. Question: "When do you expect Buxar to get commissioned? And the related question is when do you expect the Nepal power plant to get commissioned?"
Answer: Buxar Thermal (1,320 MW) will commission its first 660 MW unit by May 2025 and the second within four months. Arun-3 Hydro (900 MW) in Nepal faces geological delays, now targeting Q4 FY27.

3. Question: "What kind of capacity is likely to be added in FY '25-'26? How much was added last year?"
Answer: FY26 will add ~1,500"“2,500 MW, including Buxar Thermal (1,320 MW) and ~200"“250 MW solar. SJVN Green Energy's demerger/listing is planned for Q3/Q4 FY26.

4. Question: "What caused the rise in interest and depreciation expenses?"
Answer: Higher borrowing for growth projects (under-construction 4,936 MW) increased interest costs. Depreciation rose due to Naitwar Mori Hydro's commissioning in Q3 FY24 and asset monetization.

5. Question: "Is the 25 GW by 2030 target feasible given current pipelines?"
Answer: SJVN aims to add ~3 GW annually, including 16 GW renewables (solar/wind) and 8 GW hydro by 2030. Arunachal's 5 GW hydro projects (commissioning from FY30) and REIA tenders support this target.

6. Question: "Can you share a detailed project-wise timeline and cost breakdown?"
Answer: Management acknowledged the need for clearer disclosures and committed to sharing project-specific presentations via email/website, including commissioning dates and tariffs.

7. Question: "Why were FY25 solar capacity additions delayed beyond Omkareshwar?"
Answer: Bikaner Solar (1,000 MW) faced module supply delays due to domestic manufacturing bottlenecks. Smaller projects encountered land acquisition issues, shifting most additions to FY26.

8. Question: "How is SJVN addressing fraud risks and O&M costs for solar projects?"
Answer: Rigorous CPSU procurement processes prevent fraud. For solar O&M, SJVN plans joint ventures with private players to reduce costs, while existing EPC contracts include initial O&M services.