SJVN aims to add ₹4,000 crore in revenue over next two financial years

State-run hydropower projects developer and operator SJVN Ltd. aims to add ₹4,000 crore in revenue over the next two financial years, its Chairman & Managing Director Geeta Kapur told CNBC-TV18 in an interaction.

The company aims to add ₹2,700 crore in revenue in financial year 2025 and another ₹1,000 crore to ₹1,500 crore in revenue in financial year 2026.

In financial year 2023, SJVN had reported revenue from operations worth ₹2,938 crore.

"As of today, for the year 2024-2025, I can tell you that we will be adding around ₹2,700 crore in revenue with the present projects in hand, (and) another ₹1,000 crore - ₹1,500 crore we will add in the year 2025-2026 because if we are talking of implementing 2,000 MW in renewables and the tariff ranges from ₹2.50 - ₹3, so, every year we end up adding ₹2,000 crore - ₹2,500 crore to our revenues," Kapur said.

SJVN also plans to add 1,176 MW capacity in the next two years. Currently, SJVN has commissioned hydro capacity of 1,972 MW and renewable capacity stands at 404 MW. Another 2,000 MW of Solar projects will also be commissioned in September 2024. The next financial year will see SJVN add 2,900 MW in capacity.

"One of our major project that is the largest single location project of 1,000 MW in Bikaner, which we propose to commission towards September-end or October, so this adds 1,000 MW to our installed capacity. 900 MW on account of Arun 3 and several small projects – so a total of about 2,900 we will add in terms of mw both hydro and solar in the coming year 2024-2025," Kapur said.

The Arun 3 project, which SJVN is constructing in Nepal will be commissioned in February 2025. That project will add another ₹1,200 crore to the company's revenue, according to its CMD.

SJVN's project in Buxar, currently under progress, is also on track to be commissioned in September 2024.

Last week, SJVN signed an MoU to develop 5,000 MW renewable energy projects in Maharashtra.

Shares of SJVN are trading 3.2% higher at ₹121.60. The stock has corrected 30% from its recent peak of ₹170. The stock is trading at a financial year 2025 price-to-earnings multiple of 27.6 times, which is higher than the stock's five-year average of 21 times.