In the latest trading session, shares of SJVN Ltd saw a significant surge of over 8% following the announcement of the company’s Q1 financial results. The state-owned hydropower producer reported a consolidated net profit of ₹357 crore for the quarter, marking a 31% year-on-year increase. This robust performance has further solidified SJVN’s position as a multibagger stock, rewarding investors with an impressive 152% return over the past year.
The stock opened at ₹144.20 on Wednesday, a notable 5% increase from its previous close of ₹137.10. As trading progressed, the stock continued to gain momentum, reaching an intraday high of ₹148.10, reflecting an overall gain of more than 8.5%. The sharp rise in share price comes on the back of strong quarterly results, which were released after market hours on Tuesday.
SJVN’s Q1 performance was bolstered by a substantial increase in revenue from operations, which grew by 29% year-on-year to ₹870.35 crore, compared to ₹674.8 crore in the corresponding quarter of the previous year. This revenue growth was driven by the company’s ongoing efforts to expand its hydropower generation capacity and optimize its existing operations.
In addition to the strong revenue growth, SJVN also benefited from an increase in other income, which rose to ₹88 crore from ₹69.6 crore in the same quarter last year. This additional income provided a further boost to the company’s net profit, helping to offset any potential challenges and contributing to the overall positive financial performance.
The outlook for SJVN remains optimistic as the company enters the second quarter, traditionally the strongest period for hydropower producers due to the monsoon season. The increased water flow during this time typically leads to higher hydropower generation, which is expected to further enhance the company’s financial performance in the coming months.
Moreover, SJVN is not resting on its laurels with its hydropower assets. The company is actively expanding its footprint in the renewable energy sector, particularly in solar power. Recently, SJVN successfully commissioned a 90 MW Omkareshwar Floating Solar Project through its wholly owned subsidiary, SJVN Green Energy Limited (SGEL). This project adds to the company’s total installed capacity, which now stands at 2,466.50 MW.
The ongoing expansion into renewable energy is part of SJVN’s broader strategy to diversify its energy portfolio and reduce its reliance on traditional hydropower sources. By increasing its solar and other renewable energy capacities, SJVN aims to position itself as a leading player in India’s transition to a more sustainable and environmentally friendly energy future.
Investor confidence in SJVN has also been buoyed by the company’s recent business developments. The board of directors is currently considering a proposal to raise funds through the securitization of assets and a stake sale in SJVN Green Energy Limited. This move is expected to generate additional capital, which could be used to further invest in the company’s growth initiatives.
The board has given in-principle approval for the monetization of partial future revenue and Return on Equity (RoE) from the Nathpa Jhakri Hydro Power Station, one of the company’s key assets. This monetization effort is seen as a strategic move to unlock value from existing assets, providing the company with greater financial flexibility to pursue its expansion plans.