SJVN : Transcript of conference call held on Tuesday, November 5, 2024 with Investors and Analysts to discuss the financial results for the second quarter ended 30th September 2024 (Q2 FY 2024-25)

एसजेवीएनलिलिटेड

SJVN Limited

(A Joint Venture of Govt. of India & Govt. of H.P.)

A Navratna CPSE

CIN: L40101HP1988GOI008409

Our Shared Vision: 25,000 MW by 2030 & 50,000 MW by 2040

SJVN/CS/93/2024-	Date: 07/11/2024
NSE Symbol: SJVN-EQ	BOLT SCRIP ID: SJVN
	SCRIP CODE: 533206
National Stock Exchange of India Limited,	BSE Limited,
Exchange Plaza,	Phiroze Jeejeebhoy Towers,
Bandra Kurla Complex,	Dalal Street,
Bandra East, Mumbai 400 051, India	Mumbai 400 001, India

SUB: Transcript of conference call held with Investors and Analysts to discuss the financial results for the period ended September 30, 2024

Sir/Madam,

In compliance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, kindly find attached herein the transcript of conference call held with Investors and Analysts on Tuesday, November 5, 2024, to discuss the financial results for the period ended September 30, 2024.

Further, with reference to the NSE Guidance Note No. NSE/CML/2022/38 dated July 29, 2022, it is to be noted that the meeting was conducted as a group meeting.

Kindly take the above information on record and oblige.

Thanking you,

Yours faithfully,
SOUME Digitally signed
NDRA	by SOUMENDRA
DAS
	Date: 2024.11.07

DAS	14:39:21 +05'30'

(Soumendra Das)

Company Secretary

Encl:

As stated above

_______________________________________________________________________________________________________________

पंजीकृत एवंकॉपोरेटकार्ाािर्: एसजेवीएनकॉर्पोरेटऑफिस कॉम्प्लेक्स, शनान, शशमला - 171006 हिमाचल प्रदेश Registered & Corporate Office: SJVN Corporate Office Complex, Shanan, Shimla - 171006, Himachal Pradesh

दरभाषू / Tel No.: 0177-2660075, फ़ै क्स/ Fax: [phone], ईिेि/ Email: [e-mail], वेबसाइट/ Website: www.sjvn.nic.in

"SJVN Limited

Q2 FY '25 Earnings Conference Call"

November 05, 2024

MANAGEMENT: MR. A.K. SINGH - DIRECTOR FINANCE - SJVN

LIMITED

MR. SOUMENDRA DAS - COMPANY SECRETARY -

SJVN LIMITED

MODERATOR: MR. RUPESH SANKHE - ELARA SECURITIES PRIVATE LIMITED

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	SJVN Limited
	November 05, 2024
Moderator:	Ladies and gentlemen, good day, and welcome to Conference Call to discuss SJVN Limited
	Q2 FY '25 Earnings, hosted by Elara Securities Private Limited. As a reminder, all participant
	lines will be in the listen-only mode and there will be an opportunity for you to ask questions
	after the presentation concludes. Should you need assistance during the conference call, please
	signal an operator by pressing star then zero on your touchtone phone. Please note that this
	conference is being recorded.
	I now hand the conference over to Mr. Rupesh Sankhe from Elara Securities Private Limited.
	Thank you, and over to you, sir.
Rupesh Sankhe:	Yes. Good afternoon, everyone. On behalf of Elara Securities, we welcome you all for the Q2
	FY '25 conference call of SJVN. I take this opportunity to welcome the management of SJVN
	represented by Mr. A.K. Singh sir, Director of Finance; and Mr. Soumendra Das, Company
	Secretary. We will begin the call with a brief overview by the management, followed by Q&A
	session.
	I will now hand over the call to Mr. A.K. Singh sir for opening remarks. Over to you, sir.
A.K. Singh:	Yes, a very good afternoon to all of you. I am Akhileshwar Singh, Director of Finance, SJVN.
	I'm extremely happy to share some of major developments in quarter 2 for the financial year
	'24-'25. One of the major development in this quarter is that SJVN is conferred with the
	prestigious Navratna status by Department of Public Enterprises, Government of India. The
	prestigious recognition, making company 25th Navratna of India, marks a momentous
	milestone in the SJVN 36 years journey.
	Further, we have recently commissioned 90-megawatt Omkareshwar solar project on the 8th of
	August 2024 in the state of Madhya Pradesh with the capacity to generate 196 million units of
	energy per annum. The project is situated in Omkareshwar Floating Solar Park. Agreement for
	sale of power already signed with RUMSL, REWA Ultra Mega Solar Limited, and MP Power
	Management Company Limited.
	Thus, in terms of latest addition in our operating asset, 90-megawatt more power has been
	added, which will add approximately INR64 crores to our revenue per year. With the
	commissioning of this project, the total installed capacity of SJVN stands 2,466.50 million
	units.
	Another development is that the Cabinet Committee of Economic Affairs, chaired by
	Honourable Prime Minister of India, has approved the investment of INR5,792.36 crores for
	669-megawatt Lower Arun hydroelectric Project in Nepal. The levelized tariff of the project
	will be INR4.99 per unit on 28/24. The project will be implemented through SJVN Lower
	Arun Development Company Private Limited, a wholly owned subsidiary of SJVN,
	incorporated in Nepal.
	We are excited to inform that in the month of July, Government of Mizoram has allocated
	Darzo Lui 2,400-megawatt Pumped Storage Project to SJVN. That will be the first pump
	storage project that will be added in the portfolio of SJVN. Darzo Lui Pumped Storage Project
	Page 2 of 13

SJVN Limited

November 05, 2024

with installed capacity of 2,400-megawatt is to be developed across Darzo Nallah, a tributary of the Tuipui river.

MoU signed with the Government of Maharashtra on 26/9/24 to develop a 100-megawatt pump storage project and 505-megawatt floating solar project. Investment amounting of INR48,000 crores.

On the part of progress of project, another milestone achieved with the completion of hydro test of first unit spiral casing in Arun-3 HEP. As far as our solar project is concerned, supply of solar PV model for Bikaner solar plant, 1,000-megawatt commenced in the month of July and 100% supply of models of 100-megawatt Punjab solar project has been received at site.

Also, we are happy to highlight our power generation achievement in the second quarter. Our Nathpa Jhakri Power project has achieved the highest ever quarterly generation of 3,450.98 million unit second quarter, surpassing previous highest record of 3,401.83 million unit quarter 2 in the financial year '21-'22.

Rampur Hydro Power Station has achieved the highest ever quarterly generation of 955.616 million unit. Further, all the 3 hydropower plants, that is, Nathpa Jhakri, RHPS and Naitwar Mori, have achieved their highest generation in a single day ever since their commissioning. I am also happy to share some recent development in current quarter as well.

Boiler Light-Up of Unit 1 of Buxar Thermal Project successfully achieved on 2nd October 2024. Boiler Light-Up of Unit 2 marks a significant milestone as it is the most important step that paves the way of unit synchronization and thereafter commercial operation of the unit. Project will generate 9,028 million unit -- 9,828 million units of energy, and 85% of this power will be utilized in the state of Bihar alone.

MoU signed with the [SPWD 0:06:21] for widening of project road of Sunni Dam HEP 382- megawatt on 21/10/24. Work includes widening of a stretch from Dhali to Khaira, including construction of bridge for an estimated cost of INR70 crores.

So giving a brief of our project as on day 12 of -- 12 projects of 2,467-megawatt and 2 transmission lines are under operation, 4 hydro projects of 1,558 megawatt, 1 thermal project of 1,320-megawatt and 11 solar projects of 1,958-megawatt are under construction.

In the recent past, Government of India has launched PM Surya Ghar Muft Bijli Yojana, which aims to provide free electricity to 1 crores household in India. We are extremely happy to share that towards this scheme, SJVN has been allotted 3 states; Himachal Pradesh, Punjab and Arunachal Pradesh.

SJVN has also been assigned the responsibility of installation of rooftop solar system on government building, and 18 ministries have been allocated to us in this regard. As far as progress is concerned, process of empanelment of vendors is underway. You must also be aware that SJVN has been listed as one of the renewable energy implementing agency by government of -- by Ministry of New and Renewable Energy to meet the 500-gigawatt target by 2030.

Page 3 of 13

SJVN Limited

November 05, 2024

	In financial year '24-'25 for September ending quarter 2, we are ahead of target and achieved
	more than 100% target as SJVN has floated tender of 7.5 gigawatt. Overall, SJVN has floated
	tender of 18.6-gigawatt and awarded capacity of 8.1-gigawatt till date.
	I'm happy to share that SJVN conferred with the Pollution Control, Waste Management and
	Recycling Excellence Award during PCWR Summit and Awards '24, organized by Greentech
	Foundation at Guwahati, Assam on 27 July '24.
	I once again reiterate that SJVN is moving towards -- to achieve our vision of installing
	25,000-megawatt portfolio in operation by 2030 and 50,000-megawatt by 2040. Thanks. Now,
	Rupesh, over to you.
Moderator:	The first question comes from the line of Marshall, an individual investor.
Marshall:	My first submission is that like in the last conference also we requested that while giving this
	notification of analyst intimation, Mr. Soumendra Das can also attach the link of the Diamond
	Pass link also because it's very difficult to navigate through your website to find the link. So
	I'm sure that like this is a reminder and the next time, he will -- Mr. Soumendra Das will make
	sure that he will attach this Diamond link, this page also while informing about the intimation
	of the analyst conference like being done by all other listed companies.
A.K. Singh:	Okay. Noted.
Marshall:	Number two, sir. Like we didn't find the presentation.
A.K. Singh:	Okay.
Marshall:	So the presentation is uploaded in your SJVN website or in the BSE website?
A.K. Singh:	No, we have not uploaded the presentation.
Marshall:	Okay. So this also like -- because like we have made a very huge investment in SJVN now,
	and SJVN itself is making huge investment in 1 gigawatt in terms of many like this power
	projects, so it is a humble request that please to make sure that in the next time before the
	analyst meeting conference call, this presentation is uploaded so that it will be much easier for
	you people also to answer questions, and lesser questions will be asked because majority of the
	answers will be available within the PPT itself.
A.K. Singh:	Okay. Soumendra Das has some questions to you.
Soumendra Das:	That PPT in which form, sir?
Marshall:	Hello?
Soumendra Das:	Sir, the results have been published in the website, sir. And what kind of PPT, sir, you want?
Marshall:	I'm not able to hear you, sir.

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	SJVN Limited
	November 05, 2024
Soumendra Das:	Sir, what sort of PPT, sir, you need? Accordingly, we'll have to prepare and we'll...
Marshall:	No, no, PPT, presentation, all listed companies when they are conducting this analyst
	conference, they always give the PPT, presentation, like -- so you can see announcement of
	any listed company, you will find presentation there.
Soumendra Das:	Okay.
Marshall:	Because this is a very healthy development, like this will be transparent, and a lot of answers
	will be there itself.
Soumendra Das:	Okay. And next time, definitely, we will do this thing.
Marshall:	So in the PPT, you can give -- you can delve in detail. For example, you have under
	construction project, you can go one by one, okay that this project is going to commission on
	so-and-so, this is so-and-so state. So you can explain more in details because now the company
	has -- is having hundreds of projects. So it is very much required to give the PPT, sir.
Soumendra Das:	Yes, sir.
Marshall:	Sir, like my first question is that like you have many projects under construction like hydro, 4
	projects; renewable, 10 projects; and thermal, 1 project. So can you please give us a timeline
	that when these projects are going to be commissioned?
A.K. Singh:	Yes, yes. For '24-'25, Buxar Thermal Project, 660-megawatt, is expected to be commissioned
	by January '25. Bagodara 7 -- 35-megawatt will be commissioned by December '24.
Marshall:	This is what, again, thermal or hydro?
A.K. Singh:	No, no. This is -- we are having only 1 thermal project.
Marshall:	Okay, fine. Okay. No, because see, in thermal the capacity given is 1,320. The majority Phase
	I will be...
A.K. Singh:	Yes. I'm talking about the -- for the financial year '24-'25.
Marshall:	Okay, okay. Next, sir?
A.K. Singh:	I'm giving you the detail of 1,888-megawatt, which is expected to be commissioned by '24-'25.
Marshall:	Very good, sir.
A.K. Singh:	In that, Buxar is 666-megawatt, the only thermal project. We are expecting by January first
	unit, by January '25. Then solar, Bagodara, 35-megawatt by December and 35-megawatt --
	another 35-megawatt by March '25. Bikaner, 500-megawatt, by March '25, Bikaner Solar
	Project under CPSU.
	Omkareshwar, we have already commissioned. Then, PSPCL Punjab, 100-megawatt, we are
	expected to commission by December '24. BBMB 18-megawatt, we are expected to
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	SJVN Limited
	November 05, 2024
	commission by March '25. GUVNL 100-megawatt by March '25. GUVNL 260-megawatt by
	March '25. And Jamui Solar Project, 75-megawatt, by January '25.
Marshall:	Sir, like just -- like a humble input...
A.K. Singh:	We'll share the details.
Marshall:	No. What I'm saying that like many projects are being like targeted in March '25, so like I'm
	sure that like this will be commissioned within March, and it will not be further postponed to
	the next financial year, right?
A.K. Singh:	Maybe some slight changes may be there because of the many problems during the execution
	stage. Some -- might be some shortfall or some slippage will be there.
Marshall:	Okay. No problem, sir. My -- connected to this question, sir, like now we have many projects
	in the -- especially in the solar, so the EPC construction is being done by our own in-house
	EPC wing or are you outsourcing it to the third-party for the...
A.K. Singh:	We're not doing any EPC. Basically, our work is only for supervision and control, monitoring
	and supervision. We are outsourcing. In fact, we are awarding the contract in different forms,
	somewhere it is a land with everything like module or all the balance of plant, somewhere we
	are purchasing land and module also, and we are awarding balance of plant. But all EPC work
	had been awarded to the contractors.
Marshall:	But sir like here is like a major input I'm giving you, sir, here because I also come from the
	construction background because we have now got a 21-gigawatt under allotment and a 5-
	gigawatt almost under construction and like 2-gigawatt you already gone, okay. So 26-
	gigawatt we have. In 20-gigawatt, hopefully, I think you will be spending how much money,
	for example, maybe like about -- you'll be spending like more than INR10,000 crores or even
	much beyond that.
	So what I'm saying, I think there is some scope for cost efficiency, either in terms of
	procurement or in terms of EPC also, because so many projects you are going to have, so
	maybe if you set up your own EPC team also, so maybe like 1 project they can do on a test
	basis, and thereafter, like it's O&M is very easy because I've also done solar projects in my
	career. So like, otherwise, if you give this O&M to this company, any company, for example,
	like who is doing solar, so it means like they are making money on our behalf, like at our cost.
	So what I'm saying because now your scale is too big, so -- and like in the future it will be
	even bigger, so it's high time that we start setting up -- we make the backward integration.
	Otherwise, it's like a good amount of cost is being debited to the project, which is being paid to
	the contractor. So like we can have efficiency once we've set up like 1 small project, then it's
	cleaning, the O&M. The word is given O&M, but it's basically cleaning, so it's not a rocket
	science.
	So what I'm saying, instead of like going -- yes, instead of following only the method of just
	like being a supervisor, I think our cost of construction will be definitely at a higher level and
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SJVN Limited

November 05, 2024

	our ROE and ROC will also get reduced. So it is very much required that like -- that the
	company creates an EPC division wherein 1 project can be set up by ourselves. And thereafter
	gradually it can increase the number of projects, number one.
	Definitely, O&M cost, which is going to pay for the next 25 years, can be substantially
	reduced by having our own, like this, O&M team, two. Number three, and now this is like a lot
	of companies are -- a lot of companies are coming in a mega way in terms of production of all
	the solar module, so there is a lot of scope lies in terms of like bargain in terms of purchase. So
	I'm sure that like you are looking all kinds of what I'm saying this better strategy.
Moderator:	Mr. Marshall, sorry to interrupt, please get these -- I request you to get back to the question
	queue for...
Marshall:	They didn't answer yet. Moderator, you are not following what I am asking. So far I gave only
	2 inputs only...
A.K. Singh:	Let me reply to you. Partly I agree with you, and we have considered -- we are considering all
	these options, but sometimes, and why I'm telling that partly I agree with you, see, we are
	public sector undertaking. Our manpower cost is always higher in comparison to the cost of
	the manpower taken by the -- taken through contractor on hire basis because we have a lot of
	remuneration facility, which we cannot -- if we are giving it to all the employees or
	maintenance staff, it will be more costly.
	And in that case, we have plans to go -- to float another company with the private sector,
	etcetera, as a joint venture so that we can have a separate manpower for that company. It is
	under proposal stage. But having a government company, we have to take a lot of approval.
	And like what you have referred like Reliance or Adani, see their management can take any
	decision in the favor of the company, even by violating the procedure, etcetera.
	But here, we are having a lot of checks and balances, controls. There is CAG. There is a CVC.
	There is a CVI. So we cannot take decision like them to go start a work or start a new venture.
	We have to take also approval from DIPAM and NITI Aayog for floating a company or having
	a joint venture with private sector. But we are examining all these aspects, and we are also
	trying to do it, and we will be adopting whatever possible ways are there to maximize our
	profit.
Moderator:	Mr. Marshall seems to have disconnected at this moment. We will take the next question,
	which comes from the line of Vishal Periwal from Antique Stock Broking.
Vishal Periwal:	So I have first question. In terms of addition target for FY '25, '26, '27, can you just highlight
	like how the addition will look like?
A.K. Singh:	'24-'25, we are planning to have 1,800-megawatt almost in '24-'25; plus '25-'26, it will be
	6,357-megawatt. And '26-'27, another 3,000-megawatt will be added, plus '27-'28, 1,700-
	megawatt.
Vishal Periwal:	Okay. And then sir, in this year, what is the addition that we have done in the first half?
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	SJVN Limited
	November 05, 2024
A.K. Singh:	In this year, we are planning to have -- in fact, I have already replied Buxar, 666-megawatt, 1
	unit; Bagodara, 70 megawatt; and Bikaner, 500 megawatt. Omkareshwar, already we have
	added. PSPCL and Punjab, 100 megawatt, plus BBNB, 1,800 megawatts, and almost 400-
	megawatt in -- 360-megawatt in Gujarat and 75-megawatt in Bihar.
Vishal Periwal:	Sir, in the first half, what is the addition that we have done, in the first half?
A.K. Singh:	First half additions, we have added Omkareshwar 90-megawatt.
Vishal Periwal:	90-megawatt in the first half?
A.K. Singh:	Yes.
Vishal Periwal:	Okay. So I think on capacity addition, earlier in the quarter 1, we have guided we'll do
	something like 2.6-odd gigawatt in this year. So it looks like -- I mean like a couple of
	projects, they are moving in the renewable...
A.K. Singh:	Yes. We are expecting 1.8-gigawatt this year.
Vishal Periwal:	Okay. Got it, sir. And maybe 1 last thing. So, I think, addition has not been much, so what
	explains the rise in or the increase in the interest cost on a quarter-quarter basis this quarter or
	maybe Y-on-Y also if you can see there is an increase?
A.K. Singh:	In fact, the interest costs have been Naitwar Mori that has come under operation.
Vishal Periwal:	Okay. So that is the only element or any securitization-related expense that is getting booked
	in P&L? I mean anything on that sort that is coming.
A.K. Singh:	No, I don't think it is much. There's not much expense on the securitization. Only interest cost
	is there.
Vishal Periwal:	Okay. So if one has to understand on a quarterly basis, like in this quarter, we have -- did
	roughly like INR200 crores of interest cost, so can this be a similar number in the quarters to
	come or...?
A.K. Singh:	Yes, yes, almost it will be a similar number.
Vishal Periwal:	Okay. Okay. And this, Naitwar Mori, when this was commissioned, sir?
A.K. Singh:	In fact, the -- November '23 it was commissioned.
Moderator:	The next question is from the line of Mohit Surana from Monarch Networth Capital Limited.
Mohit Surana:	Just a couple of questions. One, in the report for this quarter that is published, there's a mention
	of Devsari Hydroelectric Project wherein we have spent INR250 crores, and it has been put on
	hold. Can you please elaborate on what's the status of this? And how -- I mean, can there be a
	recovery of this amount? My second question is, if you can just give me a status on the Arun-
	3, is there a delay? Or when can we expect the project to get commissioned?
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	SJVN Limited
	November 05, 2024
A.K. Singh:	In fact, Devsari project, there is a hold by Environment Committee and by Supreme Court, but
	Supreme Court has stopped construction on project under Ganga Basin, but Devsari project is
	not listed in that list. But somehow, Government of India has not permitted as to go for the
	construction. But now we have filed a petition with the help of Government of India with the
	Supreme Court to allow us to start construction. And we are hopeful that very soon we are
	getting the nod of the Supreme Court to start the construction. And Arun-3, we are expecting
	to commission by September '25.
Mohit Surana:	September '25, understood. Sir, just 1 last question. There is a small -- very small amount of
	non-controlling interest in our results this time. Can you just give some insights on how this
	non-controlling interest is coming from?
A.K. Singh:	We have formed a joint venture with the Assam government, APDCL, Assam Power
	Distribution Company, and 49% share -- we are having 51% equity in that company and
	Assam -- APDCL is having 49%, so that 49% share of them is non-controlling interest.
Mohit Surana:	Understood. Sir, any capex guidance for the next 3 years on a year-wise?
A.K. Singh:	Capex guidance, in fact, due to delay in this Buxar project and Arun-3 and Luhri, some
	incidents were there. And Bikaner also, it has -- now there is a delay in module supply. So this
	year, capex against the INR12,000 crores, we are revising it to INR9,000 crores for the
	financial year '24-'25. And next year, we are having a capex of INR12,000 crores. We have --
	today itself we have got the budget approved. And similar capex, INR12,000 crores,
	INR13,000 crores is expected during '26-'27.
Mohit Surana:	Understood, sir. Sir, in the last earnings call, you mentioned some IPO of your green energy
	arm. Any update on that?
A.K. Singh:	Yes. We have already got the proposal approved by the Board today, and we are approaching
	the ministry and DIPAM for taking approval, and we are also going to appoint bankers,
	underwriters. We are in the process. And we are expecting to complete the process by March
	'25.
Mohit Surana:	Understood, sir. And any finalization of the amount that we are going to raise?
A.K. Singh:	INR1,000 crore.
Moderator:	The next question is from the line of Aniket Mittal from SBI Mutual Fund.
Aniket Mittal:	Sir, just to understand on Buxar, I remember, we had certain issues on the land procurement
	part. Have those issues been resolved?
A.K. Singh:	No. Still, it is going on. But for the commissioning of the project, we have gone for the rail
	Gati Shakti arrangement, and we are having some separate line at the [Jalesar 0:30:42]
	Railway Station. And from there, we will be transporting coal to the plant. Almost 5-kilometer
	distance will be there, whereby road we will be transporting. And this way this will be initially
	operated.
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