SJVN shares increased 3.39 percent on Thursday, reaching an intraday high of Rs 123.50. The stock subsequently closed 1.63 percent higher, at Rs 121.40. The multi-bagger stock has gained 265.44% in the last year.
The surge in the share price today followed an announcement from the company stating that SJVN Green Energy, a wholly-owned subsidiary of SJVN, has been granted a letter of award for a total of 1,352 MW of solar power projects. These projects are slated to be developed across Nashik, Solapur, Ahmednagar, and Pune as part of the Mukhya Mantri Saur Krushi Vahini Yojana.
The statement indicates that SJVN Green Energy secured these projects through a competitive bidding process, specifically participating in the 1,500 MW tender organized by MSEB Agro Power Ltd (MSAPL) in Maharashtra. This tender comprised 500 MW in Round 1 and 1,000 MW in Round 2, contributing to a larger initiative with a total capacity of 7,000 MW. The scheme was initiated to drive the implementation of feeder-level solarization under Component C of the PM-KUSUM scheme.
The company stated that the total investment required for the development of these 1,352 MW solar power projects is estimated to be approximately Rs 7,436 crore. Additionally, these projects will be eligible for a maximum central financial assistance of 30 percent of the project cost, as per the company’s announcement.
Furthermore, the company highlighted its rapid progress towards achieving its shared vision of reaching 25,000 MW by 2030 and 50,000 MW by 2040. This ambitious goal is aligned with the government’s commitment to generating 50 percent of energy from non-fossil fuel-based resources by 2030.
Regarding earnings, the state-run firm experienced a decline in both profit and revenue in the third quarter of FY24. Geeta Kapur, CMD at SJVN, commented, “Profit after tax (PAT) decreased by Rs 155.64 crore compared to the same period last year, primarily due to lower generation and a slight decrease in capacity incentives.” – SJVN shares
Geeta Kapur also mentioned that in Q3 FY24, revenue from operations declined by 2.7 percent compared to the same period last year, attributed to reduced generation from the hydro projects.
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SJVN operates within the electricity generation sector, primarily focused on power generation and determining tariff rates for this purpose. The company offers three main products and services: electricity generation through hydro, wind, and solar means, consultancy services, and power transmission. Its diverse portfolio encompasses thermal power, hydroelectric power, wind energy, solar energy, power transmission infrastructure, consultancy services, and power trading.
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