SJVN Ltd Q4 FY23 Earnings Call Analysis

- SJVN's capex has grown substantially, from INR 407 crores in FY18 to INR 8,240 crores in FY23, showing a 70% compound growth rate over six years, reflecting strong expansion and project development. - FY23 registered a record turnover of INR 3,298 crores, the highest ever. - Revenue from operations increased by over 21% in FY23 to INR 2,935 crores from INR 2,421 crores in the previous year. - Total revenue grew by more than 25% in FY23. - Generation increased by over 1% year-on-year, reaching 9,335 million units in FY23 from 9,208 million units. - Capacity addition planned includes 1,500 MW renewable energy in FY24 and 1,200 MW in FY25, totaling 2,700 MW. - Long-term target includes about 5,000 MW pump storage projects over 7 to 10 years, with potential investment around INR 50,000 crores. These indicators collectively project robust future growth in sales, revenue, and volumes for SJVN.

- The transcript does not explicitly mention any ongoing or planned fundraising activities through debt or equity. - However, N L Sharma discussed significant capital expenditure plans: INR 8,240 crores in FY23, with a mix of INR 3,000 crores for renewables, INR 2,500 crores for thermal, and about INR 2,800 crores for hydro projects. - Future capacity additions of 1,500 MW in FY24 and 1,200 MW in FY25 are planned, implying substantial investment needs. - Equity investment on upcoming projects is indicated around 20-30%, with return on equity expected between 10%-12%. - No direct mention of raising funds via new debt or equity instruments was made during the call. Hence, based on the transcript, there is no clear update on new fundraising through debt or equity at this time.

- Total capex for FY23 was INR 8,240 crores: ~INR 3,000 crores in renewables, ~INR 2,500 crores in thermal, and ~INR 2,700-2,800 crores in hydro projects. - Planned capacity additions: - Renewable energy: 1,500 MW in FY24 and 1,200 MW in FY25 (total 2,700 MW). - Hydro projects: Five under construction (three in Himachal Pradesh, one in Uttarakhand, one in Nepal); over 10 more in pipeline including Arunachal Pradesh and Nepal. - Targeting about 5,000 MW hydro pump storage capacity over next 7-10 years (~INR 50,000 crores investment). - Specific projects: - Buxar thermal (1,320 MW), commissioning planned by March-June 2024, INR 7,500 crores spent so far. - Nepal Arun III project (900 MW) with PPA discussions ongoing. - Equity investment: 20-30% equity in renewable projects, expected ROI 10-12%; INR 1,000-1,200 crores equity on 2,700 MW renewables with INR 120 crores profit/year estimated. These reflect both current and future strategic capital investments.