Shares of state-owned power company SJVN Ltd. fell over 5% today after releasing a weak operational report for the fourth quarter (Q4FY24).
The stock hit a near two-week low today, closing at ₹139.65 on Wednesday. Despite this drop, SJVN shares have surged 45% this year and 275% over the past year.
Financial Highlights:
- Net Profit: SJVN reported a net profit of ₹61 crore for January-March, up from ₹17 crore last year, mainly due to a tax credit.
- Tax Credit: The company received a ₹16 crore tax credit this quarter, compared to a ₹40 crore tax expense last year.
- Revenue: Revenue fell by 4% to ₹483 crore from ₹504 crore last year.
- Operating Profit (EBITDA): EBITDA dropped 22% year-on-year to ₹240 crore, with the EBITDA margin shrinking to 49.6% from 61.3%.
This quarter marked the first time in a year that SJVN’s margin dropped below 50%.
Renewable Energy and Dividends:
- Renewable Energy Sales: Revenue from renewable energy sales increased to ₹106.8 crore, up from ₹68 crore last year.
- Dividends: The company declared a final dividend of ₹0.65 per share, in addition to the interim dividend of ₹1.15 per share announced earlier.
Joint Venture with Indian Oil:
SJVN is forming a Joint Venture with Indian Oil Corporation to develop renewable energy projects and other tech-based initiatives. This JV, with an authorized capital of ₹250 crore, is awaiting approval from the Ministry of Power, NITI Aayog, and DIPAM. Both companies will hold a 50% stake in the venture.
Despite the overall increase in net profit, operational weaknesses and a drop in revenue led to a 5% decline in SJVN’s stock price.
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