SJVN (SJVN) Q4 09/10 earnings summary

Executive summary

• FY09/10 total income was Rs. 1,908.73 crore and profit after tax was Rs. 972.74 crore; both were lower than FY08/09, which included prior-period tariff-related income.

• Power generation reached 7,018.81 MU, above the 6,612 MU design energy; plant availability was 98.55% versus an 82% normative level, earning Rs. 132 crore in incentives.

Financial highlights

• Total income was Rs. 1,908.73 crore versus Rs. 2,029.24 crore in FY08/09; net sales were Rs. 1,769.74 crore versus Rs. 1,759.59 crore.

• Profit before tax was Rs. 1,017.47 crore versus Rs. 1,285.90 crore; profit after tax was Rs. 972.74 crore versus Rs. 1,015.32 crore.

• Excluding FY08/09 prior-period tariff arrears and related interest, the year-on-year income and profit comparison reflected a higher prior-year base.

• FY09/10 expenditure excluding prior-period adjustments was Rs. 783.02 crore versus Rs. 745.32 crore; depreciation rose with revised CERC tariff regulations.

Outlook and guidance

• Rampur 412 MW commissioning was revised to September 2013 from March 2012, with difficult geology and a 20 m cavity slowing headrace tunnel work.

• Arun-III 900 MW remained in development in Nepal; the revised-capacity FSR received CEA commercial viability approval, while DPR preparation and implementation agreement negotiations continued.

• Dhaulasidh 66 MW commissioning was planned for May 2016; Devsari 252 MW, Naitwar Mori 60 MW and Jakhol Sankri 51 MW were at development, clearance or DPR stages.

• Q1 FY10/11 generation was 2,424.57 MU versus a 2,233.618 MU target; income was Rs. 524.98 crore and net profit Rs. 290.76 crore.