SJVN Q2 results preview: Here's what to expect from the PSU player

State-owned SJVN Ltd is scheduled to announce its results for the quarter and half year ended on September 30, 2024 (Q1FY25 and H1FY25). The hydro-electric power major is likely to report a mixed set of numbers on a year-on-year (YoY) comparison, where revenue, Ebitda and PAT may rise mostly in single digits.

However, analysts are expecting a strong performance on a quarter-on-quarter (QoQ) basis, with net profit rising around 30 per cent sequentially. However, its margins may contract slightly. Brokerage firms are expecting a strong growth in power generation with addition of more projects and capacity.

Elara Capital pegs SJVN's revenue at Rs 917.9 crore, up 5.5 per cent QoQ and 4.5 per cent YoY. Ebitda for the quarter may come in at 715 crore, up 7.1 per cent sequentially but marginally up 1.2 per cent on a yearly basis. Adjusted net profit may come in at Rs 453.5 crore, up 27 per cent QoQ but up 3.2 per cent YoY. It has an 'accumulate' rating on SJVN with a target price of Rs 152.

"Generation for SJVN increased 6 per cent YoY to 4,408MU in Q2FY25. It has secured assured returns on its regulated assets and incentive income based on plant performance and design energy. It has four hydro projects with 1,558MW capacity, one thermal project with 1,320MW and 11 solar projects with 1,958MW under construction. It plans to add 2,638MW capacity in FY25," Elara said.

Shares of SJVN Ltd dropped more than one per cent to Rs 109.15 on Monday, with its total market capitalization slightly above Rs 43,500 crore. The stock has corrected nearly 35 per cent from its 52-week high at Rs 170.45, hit on February 05, 2024.

On the other hand, JM Financial expect utilities to report flat or negative growth in revenue driven by moderate power demand and stable fuel prices. It sees SJVN sales are expected to increase 15 per cent YoY due to significantly higher hydro power generation, which may push revenue higher by 10 per cent YoY. JM has a 'sell' rating on the stock with a target price of Rs 71.

JM Financial pegs SJVN's revenue at Rs 1,014 crore, up 15 per cent YoY and 17 per cent QoQ. Ebitda may come in at Rs 808 crore, rising 14 per cent YoY and 21 per cent QoQ, with Ebitda margins coming in at 79.7 per cent, contracting 70 basis points sequentially. Its net profit may come in at Rs 479.2 crore, up 9 per cent YoY and 34 per cent QoQ.