SJVN’s numbers look optically strong but led by adjustments. Nand Lal Sharma, chairman and MD of SJVN discusses the company's financials in an interview with CNBC-TV18.
“Revenue from operations has registered an increase of about 19 percent and the total revenue increased by 12.4 percent. Regarding the prior period adjustments – we have filed petition for determination of tariffs in respect of one of our projects, Rampur Hydroelectric projects and that petition is with the CRC and there is a provision to show the true and fair value to the customers that 85 percent of the claimed capex can be adjusted in the revenue accounts. That is the point where our revenue adjustments have been made,” he said.
In terms of revenue outlook, he said: “Ninety eight percent of our generation and revenue is depended on hydroelectric projects. Last year generation was low because of the low precipitation in the previous year. This year, the precipitation is very well. We have registered about 60 percent increase in generation this year. For FY20, the target is 9,100 million units. In the previous year, we achieved generation of 8,435 million units. So we are looking at 9-10 percent growth.”
Regarding capex outlook for this year, Sharma said, “For FY20, the capex target is Rs 11,075 crore and the majority of the capital expenditure will be on two construction projects – one is Arun-3 which is 900 megawatt (MW) project in Nepal and another is 60 MW project in Naitwar Mori in Uttarakhand and the third one is the thermal project, which we are in the process of awarding the contract. Investment approval and all formalities have already been completed. We will be awarding the work for the 1,320 MW thermal project within a couple of weeks or months.”
He added: “Outstanding from distribution companies (DISCOMs) — we have recovered most of the outstanding. This year the outstanding is only Rs 276 crore against Rs 434 crore of the last year.”