SJVN Q2 Results: Profit Little Changed At Rs 440 Crore, Misses Estimates

SJVN Ltd., formerly known as Satluj Jal Vidyut Nigam's profit for the second quarter of this financial year was little changed, missing analysts' estimates.

The government-run power producer's consolidated net profit rose 0.1% year-on-year to Rs 439.90 crore for the quarter ended September, compared to Rs 439.64 crore in the same quarter of the previous fiscal year, according to its stock exchange notification. This was below the Rs 501 crore estimate by analysts tracked by Bloomberg.

Revenue increased by 16.8% year-on-year for the three months ended September, reaching Rs 1,026.25 crore. Analysts had projected revenue of Rs 1,030 crore. Operating income, or earnings before interest, taxes, depreciation, and amortisation, rose 17% year-on-year to Rs 828.40 crore. The Ebitda margin expanded to 80.7% from 80.4% in the same period the previous year. Analysts tracked by Bloomberg estimated Ebitda and Ebitda margins at Rs 909 crore and 2.80%, respectively.

SJVN in September had signed two Memorandums of Understanding with the Government of Maharashtra, aimed at enhancing the state’s energy infrastructure. The first MoU, established between SJVN and the Department of Water Resources, focuses on the development of five pumped storage projects with a total capacity of 8,100 MW. The second MoU involves the Maharashtra State Power Generation Company for a 505 MW floating solar project at Lower Wardha Dam.

Shares of SJVN gained 4.88% to Rs 116.85 apiece, before paring gains to trade 2.26% higher at Rs 113.93 by 3:12 p.m. The benchmark NSE Nifty 50 was trading 0.91% higher.

The stock has risen 55.11% in the last 12 months and 22.55% on a year-to-date basis. The total traded volume so far in the day stood at 1.4 times its 30-day average. The relative strength index was at 43.

Three out of the five analysts tracking SJVN have a 'buy' rating on the stock, while one suggests a hold and one suggests a 'sell', according to Bloomberg data. The average of 12-month analyst price targets implies a potential downside of 14.7%.