Aim to generate 8,690 million units of power in FY17: SJVN

State-run power generator SJVN Ltd reported a 20.31 percent decline in standalone net profit at Rs 147.48 crore for the March quarter on charging lower tariff from consumers of its Nathpa Jhakri Hydro project. The company had received a total of Rs 678 crore as arrears and excess interest from beneficiaries in FY15, for period of 2009-2014, which caused FY16 revenue comparison to look weak, said Chairman and Managing director RM Mishra.   During the fourth quarter of FY16, the company generated 999 million units from the Jhakri project, 291 million units from its Rampur project and around 4 million units from wind mill. The overall PLF (plant load factor) for the company was around a little over 100 percent in FY16, he added. The outstandings worth Rs 1,507 crore in FY15 saw a decline of Rs 400 crore in FY16, and Mishra believes things will soon get better for the company. Mishra expects a total of 8,690 million units generation in FY17. Below is the verbatim transcript of RN Misra’s interview with Latha Venkatesh & Sonia Shenoy on CNBC-TV18. Latha: It has not been a very good performance at all. The fourth quarter as well saw EBITDA down, income down, net profit down and even for the full year, it doesn’t even look like a quarterly issue. The topline is down; the profit after tax (PAT) is down as well as earnings per share (EPS). What is going wrong? Are you not generating enough electricity or are you not getting enough bang for the buck? A: The drop which you are seeing, you are observing it is actually not a drop. Our generation has increased during this year as compared to last year. Our plant performance has been almost of the same level as that of last year. The only thing which is causing this drop is because of one reason. During last year we have received Rs 571.25 crore as arrears of the period of 2009-2014 and excess interest of Rs 107 crore from our beneficiaries. Because of this reason that is between around Rs 678 crore this drop in the revenue is been observed. In absolute terms if you see you will see that there is a drop in the revenue by about 11 percent or so. If I exclude that Rs 571.25 crore then there is an increase in revenue by approximately same 11 percent. Sonia: Can you just tell us a little bit about what the generation of units was in this quarter and what was the plant load factor (PLFs) in quarter four compared to quarter three? A: During this quarter from the Nathpa Jhakri projects we have generated around 999 million units; from the Rampur Hydro Power Station we have generated about 291 million units. From our wind we have generated around 4 the total becoming to Rs 1,284 million units. The total performance of the plant availability factor for the Nathpa Jhakri it is about 103 and for the Rampur it is 98 percent. Latha: Overall PLF was? A: Overall PLF is about 100 percent little over 100 percent. Actually, we call here plant availability factor in hydro and not PLF. Latha: What about over dues? The discom owed you all Rs 1,132 crore when you last spoke to us, have they paid up? A: During last year our outstanding were at the level of Rs 1,507 crore. They have reduced now to Rs 1,132 crore. There is a drastic reduction of around Rs 400 crore. So, the things have gone towards the better side this year. Latha: That reduces your interest cost? A: That will reduce the interest cost as far as beneficiaries are concerned; their penalties will reduce what we call last payments surcharge will reduce. Sonia: Can you give us an update on some of your other projects as well, the Devsari Hydro Power project and the Naitwar Mori Project in Uttarakhand what is the status there? A: In Uttarakhand we are having three power projects Devsari 252 megawatts, Naitwar Mori 60 megawatt and the Jakhol Sankri 44 megawatt. For Naitwar Mori project we have already received the forest clearances. We are expecting environment clearances very soon. So, the investments decision will come in a few months. We are very hopeful that this project will get started during this financial year. For Devsari project, the Forest Advisory Committee (FAC) has considered the proposal for forest clearances and that we are expecting very soon. Environment clearance proposal has already been recommended by environment appraisal committee and that also we are expecting during this financial year. That project also we may award the work to the major contractors. Latha: When will these be completed you think, which year? A: Devsari will take five years to complete and Naitwar Mori four years to complete. Latha: What are your expected generation this year? A: Our expected generation during this year we are expecting around 8,690 million units approximately.