SJVN Q4 Result: Buxar revenue recognition aids 3x topline growth amidst net loss

Shares of SJVN Ltd., the state-run company, recovered from the lows of the day to trade with gains, after it reported its March quarter results on Friday, May 15.

The company reported a net loss of ₹117.8 crore, compared to a net loss of ₹127.7 crore during the same quarter last year.

Revenue for the period nearly tripled from last year to ₹1,496.5 crore, compared to ₹504.4 crore in the year-ago period.

The surge in revenue is largely attributed to the commissioning of new projects, specifically the Buxar Thermal Power Project and various solar projects.

In its notes to account, the company clarified that while the tariff petition has been filed with the CERC, pending interim or the final tariff order. Yet, an amount of ₹396.03 crore and ₹520.78 crore has been provisionally recognized as sales for the quarter, based on the CERC tariff regulations and management estimates.

The company also commissioned the 1,000 MW Bikaner Solar Power Plant and 70 MW Dhubri Solar Power Plant of SJVN Green Energy, in phases. As a result, they have recognized revenue from operations worth ₹111 crore and ₹254.32 crore respectively on account of energy generated from these projects.

Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter stood at ₹909.6 crore, from ₹230.8 crore last year.

EBITDA margin for the quarter stood at 60.8% from 47.7% last year.

Higher Costs and Impairments

SJVN's finance costs more than tripled from last year to ₹522.1 crore from ₹159.4 crore. Depreciation, Amortisation and Impairment expenses also jumped to ₹494 crore from ₹275 crore last year.

The company faced a material hit due to the reassignment of the Etalin HEP (3097 MW) to NHPC Limited. This led to assets worth ₹736.97 Crore being classified as "held for sale."

Similarly, the Devasari HEP project was placed "on hold" following Ministry of Power directives, with ₹251.38 Crore already incurred on the project.

Shares of SJVN are off the highs of the day, now trading 0.7% higher at ₹77.4. The stock is down 28% from its 52-week high of ₹117.