SJVN tanks 6% as lower revenues drag Jan-Mar profit down by 98% YoY

NEW DELHI: Shares of SJVN slid 5.7 per cent in early trade Thursday after the state-owned power firm reported an over 98 per cent decline in its consolidated net profit to Rs 7.49 crore in the March 2022 quarter, mainly due to lower revenues.

The company had posted a consolidated net profit of Rs 619.92 crore in the quarter ended March 31, 2021.

SJVN’s sales declined 30.34 per cent to Rs 323.08 crore in the quarter ended March 2022 as against Rs 463.77 crore during the previous quarter ended March 2021, reports said.

For the previous financial year as a whole, SJVN’s net profit declined 39.86 per cent to Rs 989.80 crore as against Rs 1645.72 crore during the previous year ended March 2021, reports said.

Sales dropped 2.75 per cent to Rs 2417.00 crore in the year ended March 2022 as against Rs 2485.39 crore during the previous year ended March 2021, reports said.

The board of directors of SJVN Limited has recommended a final dividend of Rs 0.55 per share of Rs 10 each for the FY 2021-22 subject to the approval of shareholders in the ensuing annual general meeting, reports said.

The final dividend is in addition to the interim dividend of Rs.1.15 per equity share for the financial year 2021-22 paid in the month of February, 2022 and will be paid within the statutory period as per the Companies Act, 2013.

Last week, SJVN said that a memorandum of understanding (MoU) for the development of the 490 MW Arun-4 hydro-electric projects in Nepal had been signed in Lumbini, Nepal, reports said.

According to the reports, the project will be developed in joint venture mode by the company and Nepal Electricity Authority (NEA) with the company having majority share. It is expected to generate around 2100 million units of energy per annum.

The expected cost of this project situated in Sankhuwasabha District Province - 1 of Nepal is Rs 4900 crore.