SJVN Limited analyst Q&A

Thank you very much . We will now begin the question and answer session . We have our first question from the line of Mohit Kumar from ICICI Securities. Please go ahead.

Good evening madam, thanks for t he opportunity . M y first question is on the renewable portfolio is it possible for you t o let us know what is the total renewable portfolio under construction and how much is the capacity where we are L1.

Our total renewable portfolio total I said was 54 but under construction we have total renewable of 2060, 11 projects and if you want I would like to name the projects which we hope to commission in the year 2024 . Mothara solar power project Gujarat installed capacity is 70 . Bikaner solar power project Rajasthan 1,000 . W e are expecting to commission by June 2024 , Ujjain solar power project UP 50 February 2024 . Raghanesda solar power project Gujarat 100 megawatt . We propose to commission by February 2024 . Omkareshwar floating solar project in the state of Madhya Pradesh 90 megawatt we propose to commission by February 2024 . I n Punjab we propose to commission 100 megawatt by June 2024 . Floating solar power project at Nangal BBMB that is Nangal dam 15 megawatt, May 2024. Rhen we have GUVNL phase 8 SPP project that is solar power project Gujarat 100 megawatt by March 2025 . Gujarat again phase four solar power project 250 megawatt again by March 2025 . Phase 7 K havda solar project Gujarat 200 megawatt by March 2025 . Jamui solar power project in B ihar 75 megawatt by March 2025 so it is a 2060 megawatts in the coming year and by March 2025.

So my question was madam you have won fair amount of projects in this fiscal year FY2024 and many of them we want to receive the L OA, can you please quant ify that number where we are L1 and we have not received the LOA.

Dear friend we have L1.

I am trying to figure out 206 0 is under construction is there any capacity which can come up for under construction in the next two three months.

5.2 gigawatt under total portfolio we have owned. We will provide you the list separately.

Understood Sir. Sir my second question is on the on the Nepal hydro project have you signed the PPA what is the status , do we intend to s ell in the exchanges is it the right assumption.

For the project in Nepal we have signed an agreement with BTC for sale of fund that is the inventory.

That is the cash for the short term right , does the PTC have a long term back to back contract sign.

We have signed a MOU with PTC and renew ed also renew power also and we are expecting PPF for 50% of the power will be signed within a month and balance with power we are going to issue tender.

Understood Sir. Thank you and all the best Sir.

Hi Madam. Hi Sir thank you for the opportunity . Madam what are your thoughts on the HP water cess issue we have been hearing that the cabinet is considering taking back certain projects which are executing or increasing the spends so your views on that.

As far as HP water cess issue is concerned the matter is subjudice in the honorable high court of HP and even arguments have been completed and we are expecting the judgment very soon. I would say that we are very hopeful that this will not be leveled as this tax is not as per the stature as on date.

Understood f or both the projects under construction large ones Buxar and Arun 3 would you like to share the timelines now by when do we expect commissioning.

For Arun 3 it will be by February 2025 and for Buxar first unit in June 2024 and next unit in September 2024.

I believe there is some delay in Arun 3 from our previous guidance , Buxar although we have played it.

Here I would like to inform you PDA is signed with Nepal government. The commissioning date was even earlier sc heduled in February though for our own purpose we had squeezed the schedule, but we are very hopeful of commissioning as per the PDA in February 2025.

Okay another question we see that the snow fall has b een quite poor especially in the Himalayan region so wanted to check with you what impact do you see especially for your hydro generation given that this year itself generation seems to be quite poor.

You are right there is over all shortfall off 452.57 million units as against our design energy of 8964.49 million units but I would like to inform you that this is a part and parcel of hydro projects. Even in the year 2018 and 19 we were not able to meet our design energy but this year again we have had reasonable snowfall and so we are hopeful of making it up in next year.

Not necessarily because the generation in Q4 will also are in the same pattern , already February is on the way and the generation is similar to t hat, slightly lesser you can say . Overall there is a 10% lesser generation 10 to 12%.

The peak months for generation are generally June to September so it is really not possible to make up in this quarter because the snow does not melt in this quarter, it is only when the temperature rises the snow melts.

What I wanted to say is that I believe as per the regulation half of our fixed cost gets converted to variable cost for hydro projects right in a way it was fixed cost itself and when the generation was poor hence should not the design energy also change by the regulator.

Actually the design energy is only an indication of the energy for which the project has been installed that the machines can deliver.

Let me clarify you. In fact currently in this year we are not going to meet the design energy generation and for that we will be claiming compensation through CRC, and we are hopeful that we will get some of it.

Okay understood Sir and now you saying the snowfall has been adequate because we saw that it was quite delayed till January there was no snow fall.

It was delayed but we have had reasonable snowfall in India.

In fact there was impact of less snowfall also . During summer this time the rain were more, and the temperature rise was less in comparison to last year or any other year . I n fact in May June there was not much heat in the in the atmosphere therefore the melting was less , it was not due to less snow , it was due to the rise in the temperature , less rise in the temperature right so hopefully it will not repeat.

Generally it does not get repeated . F or example I was tell ing you that it was in the year 2018-2019 but then we picked up again and so generally the same temperature variations do not get repeated.

It is a cyclic only.

Understood Madam lastly if you can provide the breakup for incentive income in this quarter.

The incentive this quarter has been 7.54 and 8.42 was the figure for the same quarter in last year so there is a difference of about 10%.

Okay Madam can you provide the breakup of incentive between UI and capacity side.

The breakup between capacity UI and capacity . For the this Q3 2023-2024 the charges are 42.24 as against 63.47 for the previous year and UI as I already mentioned was 7.54 this quarter as against 85.42 for the year 2022-2023 and RAC 1.4 for 2023-2024 third quarter as against 0.04 last year so in totality it is 51.18 this quarter as against 71.93 last year.

Thank you so much.

Thank you . We have out next question from the line of Abhineet Anand from 3P Investment Managers. Please go ahead.

Just on Buxar and Arun 3 what are the revised project costs.

I think Buxar there is no change in project cost, escalation will be there but in Arun 3 there will be slightly change higher side and we are expecting that the entire project including transmission line will be completed between 8,500 to 9,000 Crores.

So what is the project cost for Buxar.

Buxar project cost is 10,400 Crores with some general escalation it will be close within 11,000 Crores.

Okay and for Arun 3 you said that presently there is no PPA right.

Generally there is no PPA.

I mean 50% PPA saying within a month can be turned and rest you will go for tender and all.

What do you have with PTC and renew power that is an MOU.

It is an MOU.

We have finalized some rates also. T he terms and condition of the PPA is under finalization, it is legal waiting to be approved.

From the RE side 2060 megawatt is what we said as under construction , what is the operational and project that are won but not under construction.

I think what you are mentioning is preconstruction stage.

If we can just put in three baskets one that is operational second that is under construction which you gave and third as where you have not started construction, but you have LOA or L1 whatever.

Right I will give you a complete brief , under operation as on date we have three projects in hydro 1972 megawatt , in renewable energy six projects 254.5 megawatt and two transmission lines so that makes a total of 226.5 to be exact so under construction hydro is four projects , 1558, thermal one p roject 1320 , renewable energy 11 project 206 0 and transmission line of Arun 3 2 17 kilometers. U nder preconstruction we have hydro four projects total megawatts 4,490 , renewable 15 projects total 2,763 and thus the total being 7,253 megawatt 19 projects , under survey and investigation hydro 13 projects 3 ,650/9 thermal 1 660 megawatt total 14 projects , 4310.9. U nder allotment we have hydro 10 projects 2507, renewable energy five projects 21,000, PSVs 10 projects 12,135 thus total 25 projects 35,648.2.

That is great I think there is lot of data so if we can request the management if somewhere this could be put it would be great for all the invest ors, it will be helpful for everybody berceuse it is a lot of data that you spoke and Sir lastly the three hydro can you let us know the regulatory separately for all three.

What exactly are you asking for just once again?

For Dhaulasidh hydro electric project we have a debt equity ratio of 20:20 and estimated regulatory equity is 138 for Luhri hydroelectric project again ratio we have maintained at 80 20 and 362 is the regulated equity , for Sunni Dam again this is 70 :30 and 784 is the estimated regulated equity.

Thanks madam those were my questions. Thanks a lot.

Thank you . We have out next question from the line of Santosh Kumar Khemka a share holder. Please go ahead.

See I along with my son Vineet Khemka we are holding 10 lakh shares of SJVN. I am very happy to find that the board has maintained the interim dividend of 1. 15 since we are long - term investor right I would like to know as your ongoing projects namely Buxar, Arun 3, and Bikaner are going to add substantial power generation capacity to SJVN I would like to know the approximate commissioning date of these projects.

Buxar as I had already indicated was June 2024 first unit and Arun 3 February 2025.

I see and Bikaner.

December 2024 completion but partial commissioning will start by September, but we are expecting to complete the entire project 1,000 megawatt by December 2024.

I read somewhere that Bikaner 1,000 megawatt will be commissioned by April is it true.

It was there but it is not possible because there is DCR sales in this model to be manufactured from the domestic sale and the domestic sale capacity has not come up , constructing a plant in Tuticorin but this plant is delayed. Everything is ready but due to the model it is delayed, and we are expecting to get first Supply by June 2024 and from there we will start part commissioning and we will complete the project by December 2024.

December 2024 okay Sir thank you that is what I had to ask you, thank you.

In fact more than the dividend you are getting a market value for this year.

But dividend will not be much for you.

Dividend will be.

Interest dividend much value for you.

Yes it is much value for me. Thank you.

Thank you . We have out next question from the line of Rohit from Antique. P lease go ahead.

Thank you for this opportunity . My first question is more to do with the strategy that we earlier wanted to maintain that is in Naitwar Mori or Arun 3 our maximum sales will happen through the spot market if that continues do we want to explore PPA given some political noises that we have heard.

For Naitwar Mori currently we are selling through exchange, and we are we are trying to tie up also longterm PPA but currently we are getting a very good rate , December rates were not good but in Market we are getting a very good rate.

If Arun 3 were to be sold into the stock market at say Rs. 6.5 or 7 what could be that additional windfall EBITDA that you would make say from your typical fix cost that you incur.

This Rs. 6 will be the rate from which we will be getting . We are trying to tie up long -term PPA but currently we are selling in the market through exchange and for Arun 3 50% capacity we are going to tie up within a month or two and for rest of the ca pacity we will be floating a tender for weight power and hopefully within a month or two we will be closing that also and this Arun 3 power will be sold as a merchant power and RP obligation has also been allowed by government of India on cash to cash basis.

Can you just elaborate more on the pump hydro part where exactly are we in, what stages of construction are we.

Which hydro.

The pump hydro in fact all are in the pr e stage only. We have to prepare the DPR a nd see the viability and then we will go for that.

Thank you that is it from my side.

Thank you . We have our next question from the line of Mohit Surana from Monarch Networth Capital. Please go ahead.

Madam just one question, we had guided for a capacity of around 12 g igawatt by the end of financial year 2026 can you please let me know whether we can achieve that or will there be some kind of delay in final execution.

No I think by the year 2026 we will surely achieve. As I said a number of projects are under construction which will soon be finalized in this quarter itself in March we are adding three as I said , we are added, Gurhah we are adding, Omkareshwar we are adding and other projects which are listed to be added for the year 2 024-2025 are total 11 in number and 2060 from renewable and then we also be commissioning so we are very close to our target.

Understood thank you Madam and one last question related to the rooftop solar I just wanted to understand what kind of contribution that SJVN can receive in terms of revenue or tariff through the installation and out of the 40 g igawatt I mean you said three states are allotted to SJVN so how much could be the share of SJVN and what kind of numbers can we think of planned to this segment.

The numbers are yet to come up . S ee around 1 Crores households are to be provided rooftop. SJVN has been allocated three states. Households have already been identified and soon that list will be shared to us so what we can say is that if the government is ai ming at 40 gigawatt SJVN is one of the main players and around four to five gigawatt will fall in our pocket.

In fact the modality for the implementation is yet to be finalized so when modality will be finalized then we can work out our revenue and profitability.

Due to time constraints we will take that as the last question for today . I now hand the conference over to Mr . Rupesh Sankhe from Elara Security for closing comments , over to you.

So we thank SJVN management for giving us an opportunity to host this call and we also thank all the investors and analyst for joining this call.

On behalf of Elara Security that concludes the conference call. Thank you for joining us and you may not disconnect your lines.