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May 30, 2013 03:33 PM IST | Source: CNBC-TV18

See FY14 generation at 7000m units, flat margins: SJVN

Hydro-electric power generator sector's SJVN Limited's chairman and managing director R.P. Singh said that he expected the generation to pick up in FY14 and is likely to touch or cross 7,000 million units mark.

SJVN Limited’s shares rose 2.5 percent on the Bombay Stock Exchange (BSE) after their Q4 net profit for FY13 grew by 32 percent year-on-year (YoY) to Rs 158 crore after it wrote back taxes of Rs 59.3 crore. Their revenues registered a fall of 41.6 percent YoY to Rs 213.3 crore during its Q4.

Speaking to CNBC-TV18, R.P. Singh, chairman and managing director of SJVN Limited said even though year-on-year power generation was lower, the company managed to generate 6,778 million units in FY13 exceeding the design energy of 6,612 million units.

He expected the power generation would touch or cross the 7,000 million units mark by the end of FY14 and added that the margins were likely to be around 86 percent in FY14- same as last fiscal year. The company’s total outstanding dues to the state electricity boards (SEBs) stood at Rs 132 crore.

Also read: Accumulate SJVN; target of Rs 23: PLilladher

Below is the edited transcript of his interview to CNBC-TV18.

Q: Your generation was down five percent this quarter. That was because of a slip in terms of water discharge in this quarter on a year-on-year basis as well by around 20 percent odd. Can you just tell us when exactly do you see a recovery in terms of generation and how is this quarter doing in terms of generation of units as well?

A: Generation has been lesser due to the lesser inflow by 21 percent in the river Satluj and the generation in fact has hit compared to the previous year by around 11 percent.

Even though the generation is lesser compared to the previous year, we have exceeded the design energy, which is 6,612. So, the generation during the year FY13 stands at 6,778 against the design energy of 6,612.

So in this year, even when the quarter has not been completed, we have generated something around 1,305 million units till yesterday midnight. This is against the same period last year which was something around 980 million units.

So, the generation this year is going well and we are quite hopeful that at the end of the year FY14 that generation will be touching or exceeding 7,000 well above the design energy.

Q: How will that help you in terms of your margins because in FY13 your margins had slipped to 86 percent versus 87 percent last year? In FY14, what margins do you think SJVN can do?

A: In general terms, our margin has been reduced little bit. But if you see the profit after tax (PAT), it is Rs 1,052.34 crore against the previous year’s PAT of Rs 1,068. 68. So reduction is very lesser. It is something around Rs 16.34 crore.

Now your query about what is the trend for this year, FY14. It will be somewhere near what we have achieved in the previous year, it is likely to be.

Q: You have outstanding dues coming in from the Delhi, Uttar Pradesh (UP) as well as the Himachal Pradesh state electricity boards (SEBs). Can you just take us through what exactly the total outstanding figure is at this point in time and when do you expect receivables to come through? What would be the payment structure that we can expect?

A: I would like to defer from you here on this to the extent that outstanding balance as on this year stands at something around Rs 350 crore against the same balance in the previous year that is March 31, 2012, it stands at Rs 580 crore. It is upto March.

If you see the updated outstanding, the total outstanding stands at Rs 306 crore. In fact, more than 60 days, which we actually call the outstanding, stands at Rs 132 crore approximately. So, our outstanding is not much.

Of course it is Rs 132 crore. But we are quite hopeful of taking suitable action so that this outstanding also can be reduced marginally.

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