SJVN Limited, a joint venture between the Government of India and the Government of Himachal Pradesh, has registered a net profit of ₹2.7 billion (~$32.5 million) during the first quarter (Q1) of the financial year (FY) 2023-24, a year-over-year (YoY) decrease of 55.5% from₹6.08 billion (~$73.1 million).

The company registered a revenue of ₹7.38 billion (~$88.8 million), a YoY decrease of 31% from ₹ 10.71 billion (~$128.9 million).

Net profit margin (i.e., profit for the period/revenue from operations) stood at 40.66% as compared to 60.40% achieved during Q1 2022.

The company said the Q1 results were not as promising due to inadequate water availability in the Sutlej River, where two of its major hydropower projects are located.

The scarcity was due to various factors, including significantly lower river discharge during the first quarter compared to the previous year—reaching as low as 50% at one point.

The arrival of the monsoon is expected to boost water levels, but the initial months of April, May, and June were marked by unusually limited winter snowfall in the hills.

Consequently, the usual springtime snowmelt and river discharge were reduced due to the mild summer conditions in the hilly areas. This resulted in a decreased river discharge of around 25% to 30% compared to the previous year, ultimately leading to reduced power generation during Q1.

Chairman and Managing Director of SJVN NL Sharma said SJVN’s total power generation was 2,061 million units, in contrast to 2,735 million units earlier, showing a reduction of around 674 million units or a 25% drop.

Wind projects generated 53.09 million units, and solar projects generated 2.37 million units out of the total.

Revenue generated from renewable energy sources, including wind and solar power, reached ₹194.5 million (~$2.3 million) during the quarter, compared to ₹215.2 million (~$2.5 million) in the same quarter of the previous year.

This decrease consecutively also impacted power sales, leading to a 25% decline in generation-related revenue, resulting in a decrease of ₹710 million (~$8.5 million), Sharma said.

The company’s total expenses for the quarter stood at ₹3.58 billion (~$43 million), a YoY decrease of 14.7 % compared to ₹4.2 billion (~$50.5 million).

SJVN possesses a total operational capacity of around 2.1 GW. This capacity is distributed among two hydroelectric projects, two wind energy projects, and four additional solar projects.

It has 16 ongoing projects under construction, collectively expected to have a capacity of roughly 4.5 GW.

In July, SJVN Green Energy, a wholly owned subsidiary of SJVN, received a letter of intent from the Punjab State Power Corporation (PSPCL) to develop 1,200 MW solar power projects.

In the same month, the Ministry of Power approved SJVN’s request to set up overhead transmission lines for its 1,000 MW solar power project in Bikaner, Rajasthan.