SJVN : Transcript of Conference Call held on Tuesday, 07th February 2023 with Investors and Analysts to discuss financial results for the Quarter ended 31st December 2022 (Q3, FY 2022-23)

CIN: L40101HP1988GOI008409	एसजेवीएन ल मटेड
	SJVN Limited
	(A Joint Venture of GOI & GOHP)
	A Mini Ratna & Schedule "A" Company
SJVN/CS/93/2023-	Date: 10/02/2023
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-400051, India.	Mumbai 400001, India.

SUB: Transcript of conference call held with Investors and Analysts to discuss the financial results for the third quarter ended 31st December, 2022

Sir/Madam,

In compliance with regulation 30 of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, kindly find attached herewith transcript of conference call held with Investors and Analysts on Tuesday, 07th February, 2023 to discuss the financial results for the third quarter ended 31st December, 2022.

Kindly take the above information on record and oblige.

Thanking you,

Yours faithfully,

(Soumendra Das)

Company Secretary

Encl:

As stated above

_______________________________________________________________________________________________________________

पंजीकृत एवंकॉप रेटकायालय: एसजेवीएनकॉप रेटऑ फस कॉ लेस, शनान, शमला - 171006 हमाचल देश Registered & Corporate Office: SJVN Corporate Office Complex, Shanan, Shimla - 171006 Himachal Pradesh

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

"SJVN Limited Q3 FY2023

Earnings Conference Call"

February 07, 2023

MANAGEMENT: MR. N L SHARMA - CHAIRMAN & MANAGING

DIRECTOR - SJVN LIMITED

MR. A K SINGH - DIRECTOR, FINANCE - SJVN LIMITED

ANALYST: MR. RUPESH SANKHE - ELARA SECURITIES (INDIA) PRIVATE LIMITED

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SJVN Limited

February 07, 2023

Moderator:Ladies and gentlemen, welcome to the SJVN Limited Q3 FY2023 Earnings Call hosted by Elara Securities India Private Limited. As a reminder, all participant lines will be in the listen-only mode. There will be an opportunity for you to ask questions at the end of today's presentation. Should you need assistance during the conference, please signal an operator by pressing '*' then '0' on your touchtone phone. Please note that this conference is being recorded. I would now like to hand the conference over to Mr. Rupesh Sankhe from Elara Securities. Thank you, and over to you, sir.

Rupesh Sankhe:Good afternoon, everyone. On behalf of Elara Securities we welcome you all for the Q3 FY2023 conference call of SJVN. I take this opportunity to welcome the management of SJVN represented by Mr. N L Sharma - Chairman & Managing Director; Mr. A K Singh - Director, Finance. 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. N L Sharma for his opening remarks. Over to you, sir.

N L Sharma:Thank you. Good afternoon to all. SJVN is here to present its Q3 numbers and the overall nine month numbers to all the investors and analyst present over here. Before I present the numbers, a few highlights. During this quarter Q3, SJVN got the investment approval of its one of the hydro projects in Himachal Pradesh Sunni Dam Hydroelectric project of 382 megawatt, and its estimated cost is Rs.2615 Crores. Cabinet committee on Economic Affairs approved the investment approval of this amount and conveyed this decision, and SJVN awarded the contract to the lowest bidder through a competitive method on January 14, 2023. So this is the addition. As of now we have five hydro projects under construction, one thermal project, and six solar projects. So total 12 generation projects are under construction and two transmission lines, thus making total 14 projects as of now. SJVN has portfolio of 14 projects under construction out of these 14, 12 are generation project and two are transmission projects, and the capacity of generating projects is 4323 megawatt, and projects are under different stages of development.

Now I will come to the numbers for this quarter Q3 of FY2023, and overall nine months of FY2023. For the quarter so for us the numbers in terms of profit after tax are concerned we have positive number. However, there is marginal decrease in the generation. This decrease in generation from overall hydro and renewable projects. The generation if we compare as compared to the last year, generation this quarter is 1394.9 million units, against 1480 million units last year. So there is a decrease of 85 million units, which comes to around 5.7%, there is a decrease in generation. This decrease in generation is because of the lesser rains in the catchment areas of hydro projects, and at the same time marginally lower

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SJVN Limited

February 07, 2023

generation in wind as well as solar projects. So that resulted in decrease in generation. However because of some other changes in the financial number the revenue from operation has slightly increase by 0.2%, last year it was Rs.550.52 Crores during this quarter and this year is 551.67 Crores. So there is increase of Rs.1.15 Crore revenue from operation. So far as total income is concerned, there is an increase of Rs.116.25 Crore that amounts to 19%. The figures of total income during this quarter Rs.723 Crore against Rs.607 Crore last year.

If we come to the figures of profit before tax. The profit before tax has increased by 4.5%, this quarter PBT is 316 as compared to 302 last year. PAT has increased during this quarter by about 25%. The numbers of 290.98 that is almost 291 Crore this year, this quarter against the last year corresponding quarter of Rs.232 Crore. Similarly EPS has also increased, networth has increased from Rs.13581 to Rs.14261 Crore. Generation as I have already explained, so far as plant availability factor of our hydro project is concerned plant availability sector is almost the same as this year as compared to last year. There is marginal increase, it is around 10.22% for Nathpa Jhakri and 109.98% in case of Rampur project this quarter.

So far incentive. In terms of capacity incentives and UI are concerned, there is slight decrease, last year the incentives were to the tune of Rs.74.4 Crores, this year it is Rs.71.89 Crore there is decrease of 3.3% in the incentive.

Now I will share the numbers for the nine months of this FY2023. Revenue from operation has increased by 16%. This year number is 2438 Crore against 2098 Crore last year. Total income, there is increase of 21%, figures are Rs.2715 Crore against Rs.2237 Crore last year. PBT has increased by 11% over a period of nine months of FY2023, the figures are 1501 against last year 1347. So far as PAT is concerns, profit after tax, there is an increase of almost 38%, the numbers are 1349.8 Crores this year compared to 978 Crore last year. So far as generation is concerned, overall generation for the nine months there is an increase of 1.6%, in absolute terms there is an increase of 138 million units and the figures of total generation for the first nine months of FY2023 8458 million units against 8320 million units. So there is an increase of 138 million units during the first nine months. So far as plant availability sector is concerned, it is around 109.8, 109.9 for the Rampur and the Nathpa Jhakri project. So these are the numbers.

Now we are open to the questions of the people present over here in the teleconference.

Moderator:Thank you very much. We will now begin with the question and answer session. The first question is from the line of Mohit Kumar from DAM Capital. Please go ahead.

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SJVN Limited

February 07, 2023

Mohit Kumar:Good afternoon, sir, and congratulations on good set of numbers. The first question is on the status of Buxar and Nepal. Can you just refresh the timeline, which we are expecting and related question is there any update on the PPF on Nepal where we are right now.

N L Sharma:So far as the status of these two projects Buxar and Nepal is concerned, these projects are almost on the track with some difficulties. In Buxar project there were some law and order issues regarding the land and land compensation issues. So work remained closed because of these law and order issues for about 10 days, and now work activities on the project are resuming. At the time when this took place, the second week of January, the labor at that time about 5000 people on all fronts of Buxar but due to that law and order issue labors fled and now the work started after 10 days now there are almost 2000-2500 labors and we expect that the remaining labors will also come and work in full swing will start, but we are targeting the commissioning of this project by the end of next financial year FY2023 though there are many odds what we are trying to manage the things to our best. Regarding the Nepal project, Nepal project also there are issues, communication regarding the road condition Costal Highway which is the lifeline of the Arun three project we have already taken up the issue of Costal Highway of handing the critical portion of 60 kilometres to SJVN for its repair and maintenance, but we expect that by the end of next financial year by March 2023 we are fixing the target for the commissioning of the project. So far as PPA is concerned, we are in discussion with the different modes to sell the power but anyway that power we were not able to sign PPAs and we have the option to sell the power through power exchange also because with the increased quantum of injection of solar power in the grid the hydro power demand is also increasing. So we can sell the power through open exchange also but at the same time we are trying to have PPAs for the power of Nepal.

Mohit Kumar:So I think the timeline is March 2024 for the Nepal and March 2025 for the Buxar am I right.

N L Sharma:No, March 2024 for Buxar also both.

Mohit Kumar:March 2024 both the power plant. Okay, understood. The second question is of course you have raised 10 billion for securitization what is the use of proceeds are we thinking of paying more dividend.

N L Sharma:Not at all, dividend we are paying as per the guidelines of the Government of India, but we are using this amount, which we got through securitization for infusion of equity also as well as the requirement of debt requirement in the case various project because 4323 megawatt projects are under construction, which require almost more than 30000 Crore

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