SJVN (SJVN) Q4 17/18 earnings summary

Executive summary

• FY18 generation rose to 9,280.25 MU, above the 8,950 MU MoU target; revenue from operations fell to ₹2,229.97 crore and PAT to ₹1,224.88 crore.

• Growth advanced through construction starts at Arun-3 and Naitwar Mori, while a share buyback and lower proposed dividend reduced capital returned to shareholders.

Financial highlights

• Standalone revenue from operations fell ₹449.34 crore YoY to ₹2,229.97 crore; total income declined 17.08% to ₹2,587.07 crore.

• Standalone PAT declined ₹319.26 crore to ₹1,224.88 crore; PBT was ₹1,648.37 crore versus ₹1,873.93 crore.

• Consolidated revenue was ₹2,583.95 crore and PAT ₹1,224.61 crore, versus ₹3,117.39 crore and ₹1,545.28 crore in FY17.

• Operating expenses fell 18.52% to ₹989.80 crore, mainly due to depreciation dropping ₹315.47 crore; finance costs rose to ₹83.82 crore from ₹45.70 crore.

Outlook and guidance

• FY19 generation target is 9,200 MU; Q1 FY19 generation reached 2,404.49 MU, with energy-sale revenue targeted above ₹2,175 crore.

• Priorities include progressing Arun-3 and Naitwar Mori, beginning Buxar thermal construction, and securing approvals for Luhri Stage I, Sunni Dam, Devsari and Jakhol Sankri.

• Sadla wind project was expected to commission in FY19; renewable expansion was to proceed gradually, including potential strategic partnerships.