GuruFocus -
- New Solar Project Commissioned: 90 megawatt solar project commissioned, expected to add approximately 64 crore to annual revenue.
- Total (EPA:TTEF) Installed Capacity: Stands at 2,466.50 million units.
- Hydroelectric Project Investment: 5,792.36 crore approved for a 669-megawatt project in Nepal.
- Quarterly Power Generation (HM:PGV): Highest ever quarterly generation of 3,450.98 million units for Nepal Park project.
- Projects Under Construction: 4 hydro projects (1,558 megawatts), 1 thermal project (1,328 megawatts), and 11 solar projects (1,958 megawatts).
- Renewable Energy Target (NYSE:TGT): Ahead of target for FY24-25, achieving more than 100% of the target.
- Tender and Award Capacity: Floated tenders for 18.6 gigawatts and awarded 8.1 gigawatts.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- SJVN Ltd (BOM:533206) has successfully commissioned a 90 MW solar project in Omkareshwar Floating Solar Park, adding approximately 64 crore to annual revenue.
- The company has received approval for a significant investment of 5,792.36 crore for a 669 MW hydroelectric project in Nepal.
- SJVN Ltd has been allotted the Darzo Lui PSP 2,400 MW pumped storage project in Mizoram, marking its first entry into pumped storage projects.
- The company achieved record power generation in the second quarter, with the Nepal Park project reaching its highest ever quarterly generation.
- SJVN Ltd has been recognized with the Pollution Control Waste Management (NYSE:WM) and Recycling Excellence Award, highlighting its commitment to environmental sustainability.
- There are delays in some projects due to land acquisition issues and supply chain challenges, particularly in solar projects requiring domestic content.
- The Buxar thermal project has faced delays due to rail infrastructure issues, pushing the commissioning timeline to June 2025.
- Interest costs have increased, impacting financial performance, with expectations of similar costs in upcoming quarters.
- There are challenges in signing Power Purchase Agreements (PPAs) for some renewable energy projects, potentially risking project cancellations.
- The company faces difficulties in executing projects where land acquisition is required, leading to potential delays in project timelines.
A: For 2024-25, we expect to commission 660 megawatts by January 2025 and 735 megawatts by December 2024. The Buxar thermal project is expected to have its first unit operational by January 2025. Several solar projects are also slated for completion by March 2025.
Q: What are the capacity addition targets for FY25, FY26, and FY27?
A: For FY24-25, we plan to add approximately 1,800 megawatts. In FY25-26, the target is 6,357 megawatts, and for FY26-27, another 3,000 megawatts will be added. By FY27-28, we aim to add 1,700 megawatts.
Q: What is the status of the hydroelectric project that has been put on hold, and can there be a recovery of the investment?
A: The project is on hold due to a Supreme Court order, but it is not listed in the restricted projects. We have filed a petition to resume construction and expect to commission it by September 2025.
Q: Could you provide an update on the IPO for your green energy division?
A: The proposal has been approved by the board, and we are in the process of obtaining necessary approvals and appointing bankers. We aim to complete the IPO process by March 2025, targeting to raise 1,000 crores.
Q: Are there any challenges in executing renewable projects, particularly in terms of land acquisition or supply chain issues?
A: Some projects are delayed due to land acquisition challenges and supply chain issues, particularly with domestic content requirements for solar modules. We expect some projects to be delayed by a few months.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.