SJVN Limited: history, ownership, mission, how it works & makes money

A Brief History of SJVN Limited

SJVN Limited, a joint venture between the Government of India and the Government of Himachal Pradesh, was established in 1988. The company commenced its operations with the construction of the Nathpa Jhakri Hydro Power Station, which has a total installed capacity of 1500 MW.

In 2010, SJVN was listed on the Bombay Stock Exchange and National Stock Exchange, enhancing its capital base for further projects. By March 2022, the company reported a total capacity of 2090 MW across various renewable energy projects, including hydroelectric power and solar power plants.

For the financial year ending March 2023, SJVN Limited's total income was approximately ₹3,432 crores, marking an increase of 16.7% compared to the previous year. The company reported a net profit of around ₹1,110 crores, which is an increase of 11.4% year-on-year.

In addition to hydroelectric power generation, SJVN is actively diversifying into solar and wind energy. As of 2023, the company has initiated two solar power projects with a total capacity of 900 MW, aiming to meet the increasing demand for clean energy in India.

Moreover, SJVN has been awarded several projects under the government's Renewable Energy sector initiative, projecting a target of achieving a total capacity of 5000 MW by 2025. The company’s commitment to sustainability and clean energy solutions has aligned well with the government's renewable energy policies.

The Market Capitalization of SJVN Limited as of October 2023 stands at approximately ₹15,000 crores. The stock has demonstrated resilience, with a year-to-date return of around 35%, reflecting the market’s positive sentiment towards renewable energy companies.

Strategically, SJVN has expanded its footprint in international markets, signing MOUs for renewable projects in countries like Nepal, Bhutan, and Africa. This global expansion is expected to contribute significantly to its revenue streams in the coming years.

A Who Owns SJVN Limited

SJVN Limited, incorporated in 1988, is a Mini Ratna Public Sector Undertaking (PSU) primarily engaged in power generation in India. The ownership structure of SJVN Limited is diverse, with significant stakes held by the Government of India and institutional investors. Below is detailed ownership data based on the latest available information from the stock exchanges and company filings.

The major shareholder, the Government of India, holds a substantial portion of SJVN's equity, totaling 62.57%. This is indicative of the company's strategic importance in the energy sector. The remaining stake is distributed among the Government of Himachal Pradesh, institutional investors including both FIIs and DIIs, and the general public. Together, these entities hold a combined 37.43% of the company.

As of March 2023, SJVN’s total paid-up equity share capital stands at ₹2,548.27 crore, and it is listed on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). This accessibility has contributed to a wide share distribution among retail investors.

In the financial year 2022-2023, SJVN reported a total revenue of ₹3,004 crore, with a net profit of ₹1,020 crore, reflecting the company's operational efficiency and profitability, further solidifying its attractiveness to investors.

Ownership structures can influence corporate governance and strategic direction. With the government holding a decisive stake, SJVN's operational decisions are likely aligned with national energy policies. Institutional investors contribute to the company’s capital and stability, making SJVN a noteworthy entity in India’s power sector.

SJVN Limited Mission Statement

SJVN Limited aims to become a leading player in the power sector, focusing on the development of renewable energy resources and sustainable practices. The company has set ambitious targets to harness the country’s hydropower potential and diversify into solar and wind energy. As of 2023, SJVN Limited's mission emphasizes energy generation, boosting employee welfare, and enhancing customer satisfaction while adhering to environmental sustainability.

Core Aspects of the Mission Statement

• Vision for Renewable Energy: SJVN Limited seeks to increase its renewable energy capacity from the current level of 2,016 MW to 5,000 MW by 2025.
• Employee Welfare: The company is committed to the overall development and welfare of its workforce, investing in training programs that have allocated over ₹30 crores in recent years.
• Customer Satisfaction: SJVN Limited regularly conducts surveys to monitor customer satisfaction with a target score of over 85%.
• Environmental Sustainability: The company aims to maintain an emission-free profile in its energy generation, targeting a 0% carbon footprint by 2030.

Strategic Objectives

In alignment with its mission, SJVN Limited is also targeting a 15% annual growth rate in revenue, driven primarily by increased efficiency and capacity expansion. The company's current revenue stands at approximately ₹3,500 crores for the fiscal year ending March 2023.

Partnership and Collaborations

SJVN Limited has entered into various partnerships aimed at boosting its capacity and technology. Notable collaborations include:

• Joint ventures with international firms for technological upgrades.
• Strategic alliances for solar power projects, aiming for an installation of 1,000 MW by 2025.
• Participation in government-led initiatives to promote wind energy.

Overall, SJVN Limited’s mission statement is not just a declaration but a commitment backed by measurable targets and extensive planning to meet the challenges of the evolving energy landscape in India.

How SJVN Limited Works

SJVN Limited, a public sector undertaking, primarily focuses on the development and operation of hydroelectric power projects. Established in 1988, SJVN is recognized for its commitment to generating renewable energy and has a significant presence in India's energy sector.

The company operates through several segments, including generation, distribution, and sale of electricity. Additionally, it provides consultancy services in the energy sector, particularly in hydropower.

Financial Performance

For the fiscal year 2022-2023, SJVN reported a total income of ₹3,648.82 crores. The net profit for the same period stood at ₹1,134.28 crores, representing an increase of 19.14% compared to the previous year. This solid performance reflects the company's efficient operational management and strategic project execution.

Operational Capacity

SJVN’s installed capacity as of March 2023 is 2,016 MW, comprising hydropower, solar power, and wind energy projects. The breakdown of installed capacity is as follows:

Project Portfolio

SJVN has several ongoing and upcoming projects, enhancing its capacity and diversifying energy sources. Some notable projects include:

• Rampur Hydroelectric Project: 412 MW capacity, operational since 2014.
• Baspa II Hydroelectric Project: 300 MW capacity, operational since 2003.
• Solar Power Projects: Total capacity of 66 MW, with plans to expand further.

Market Performance

The stock performance of SJVN has shown resilience. As of October 2023, the stock price was approximately ₹66 per share. The company's market capitalization is around ₹10,500 crores, which reflects investor confidence and growth prospects.

Future Outlook

SJVN aims to achieve an installed capacity of 5,000 MW by 2025, focusing on expanding its renewable energy portfolio. The company is also exploring international projects to enhance its market reach.

The commitment to sustainability and renewable energy aligns with India's ambitious targets to increase its renewable energy capacity to 500 GW by 2030.

In terms of financial ratios, SJVN's return on equity (ROE) stands at 10.5%, and the earnings per share (EPS) for the fiscal year 2022-2023 is ₹3.89, indicating robust profitability and shareholder value.

Overall, SJVN Limited operates efficiently within the renewable energy sector, demonstrating strategic growth and commitment to sustainable energy generation.

How SJVN Limited Makes Money

SJVN Limited, a major player in the Indian power sector, generates revenue primarily through the development and operation of hydroelectric power projects. As of FY 2022-2023, SJVN reported a total income of ₹2,665 crore, a growth of approximately 19.9% from the previous financial year.

The company's revenue streams can be categorized as follows:

• Hydroelectric Power Generation: The most significant source, contributing around 88% of total revenue. In FY 2022-23, SJVN produced 1,650 MW of power.
• Wind Power Generation: This segment has gained prominence, especially with the boost in renewable energy initiatives. SJVN has a capacity of 300 MW in operational wind projects.
• Solar Power Projects: With the increasing focus on sustainable energy, SJVN aims to enhance its solar power capacity. Currently, the company has projects totaling 150 MW.
• Consultancy Services: SJVN also provides consultancy in planning and executing hydro and renewable energy projects, contributing to approximately 5% of revenue.

The following table illustrates SJVN's revenue breakdown by segment for FY 2022-2023:

In terms of operational performance, SJVN recorded a net profit of ₹1,094 crore for FY 2022-2023, indicating a year-on-year increase of 22.5%.

The company's growth strategy includes expanding its renewable energy portfolio, targeting a total capacity of 5,000 MW by 2025. SJVN's efforts align with India's commitment to achieving 500 GW of renewable energy capacity by 2030.

Further, SJVN has entered into power purchase agreements (PPAs) that ensure stable revenue streams. As of 2023, it has signed PPAs for additional renewable projects that are expected to generate over ₹800 crore annually once operational.

SJVN's financial health is reflected in its debt-to-equity ratio, which stands at 1.0, demonstrating a balanced approach to financing its projects. The company’s return on equity (ROE) is 14%, showing effective utilization of shareholders' funds.

In summary, SJVN Limited's revenue generation is robust, leveraging its hydroelectric capabilities while diversifying into wind and solar power, supported by strategic agreements and a focus on sustainable growth.