Power Generation stock in the Navaratna category rose 5.72% in Friday trading session after signing multiple MoUs with Government of Maharashtra for the development of Pumped Storage Projects (PSPs) and Floating Solar Projects (FSPs)
Share price variations:
With a market capitalization of Rs. 50,753 crores, the shares of SJVN Limited opened the trading session at Rs. 127.25 nearly 1% above the previous day’s close of Rs. 126.00, and went up to make an intraday high of Rs. 133.20, which is 5.72% above the previous day close. At 1:36pm the share was trading at Rs. 132.50 per share.
Reason for Rise:
As per the exchange filings, SJVN Limited has signed multiple MoUs with the Government of Maharashtra for an estimated total cost of Rs. 48,000 crores. The first MoU is for the development of five pumped storage projects with a total capacity of 8,100 MW, while the second MoU is for the development of a 505 MW floating solar project at Lower Wardha Dam in Maharashtra, which will be developed in two phases.
Financial Performance:
For Q1FY25 the company reported a net profit increase of 31.40% to Rs. 357.09 crores compared to net profit of Rs. 271.75 crores in Q1FY24, while revenue from operations increased by 28.98% to Rs. 870.37 crores from Rs. 674.79 crores in comparison to the same period.
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Recent Projects:
In September the company entered into a MoU with Nepal Electricity Authority along with GMR Upper Karnali Hydro Power Limited and IREDA for development of Upper Karnali Hydro Electric Project (900 MW). The project cost approximately Rs. 9,100 crores.
In August, SJVN Ltd was granted “Navratna Status” by the Ministry of Finance. With the commissioning of the 90 MW Omkareshwar Floating Solar Project, executed by its wholly owned subsidiary SJVN Green Energy Limited, the company ventured into the floating solar power segment and investment of Rs.5,792.36 crores (Cost to Completion) for 669 MW Lower Arun Hydro Electric Project (LAHEP) in Nepal.
About the company:
SJVN Limited, a Navratna CPSE under administrative control of the Ministry of Power, Govt. of India, was incorporated on May 24, 1988, as a joint venture of the Government of India and the Government of Himachal Pradesh. The company has four fully owned subsidiaries and one joint venture and its arm.
The company is engaged in the business of Electricity generation providing consultancy for hydro-power projects.Presently, total project portfolio of SJVN is 56,803 MW, out of which 2,467 MW is under operation, 4,836 MW is under Construction, 16,158 MW is under Pre-construction and S&I stage and 33,342 MW capacity Projects are under allotment.
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Written By: Joseph Pv
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