SJVN and Cochin Shipyard Shares Plummet Up to 9% on Disappointing Q4 Earnings

SJVN Shares Decline 9% Amid Muted Profit Growth

Shares of SJVN, the state-owned power generation company, declined nearly 9 percent to an over one-month low of Rs 70.50 per share on the National Stock Exchange (NSE) on Monday. The decline came despite the company's March quarter revenue being supported by the commissioning of the Buxar unit-1.

The company's net profit growth remained muted due to higher finance costs. Despite this, brokerage Elara Securities retained its "buy" rating on the stock but cut its target price by nearly 12 percent to Rs 106 from Rs 120. This reduction in target price was attributed to the delay in project commissioning.

The brokerage also reduced its earnings estimates by 23 percent for FY27 and raised its FY28 estimates by 5 percent, factoring in delayed commissioning and the expected stabilisation of the Buxar plant.

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SJVN reported a narrowing of consolidated loss to Rs 117.84 crore in the March quarter against Rs 127.72 crore a year ago. Total income rose to Rs 1,548.46 crore from Rs 548.84 crore in the same period last year.

Financial Performance Comparison

On a standalone basis, net profit rose to Rs 125.40 crore from the year-ago period, while income doubled to Rs 1,047.70 crore. Revenue for the quarter rose over twofold to Rs 934 crore from Rs 548.84 crore a year earlier.

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Quarterly Revenue Growth

Sequentially, net profit fell over 50 percent, while revenue rose 10.4 percent. Growth in revenue was driven mainly by recognition of sales from Nathpa Jhakri and Rampur hydro power stations.

SJVN added 1.73 GW of capacity during the March quarter, taking total installed capacity to 4.20 GW. The company has an under-construction pipeline of 3.93 GW.

The company has earmarked capital expenditure of Rs 94,000 crore for FY27, Rs 78,000 crore for FY28, and Rs 75,000 crore for FY29. The company had earlier guided for 25 GW capacity by 2030, which is now under review due to slower tendering and operational challenges.

Government of India holds 55 percent stake in SJVN, while the Himachal Pradesh government owns 26.85 percent. The remaining 18.15 percent is held by the public.

Cochin Shipyard Shares Fall 7.5% Amid Decline in Net Profit

Meanwhile, shares of Cochin Shipyard fell 7.5 percent to an over one-month low of Rs 1,475 after the company reported a 24 percent year-on-year decline in net profit for the March quarter. The stock has now fallen for three straight sessions, losing nearly 11 percent during the period.

Net profit stood at Rs 216 crore in the March quarter, down from the year-ago period. On a sequential basis, profit rose over 57 percent. Net sales declined 26.5 percent year-on-year to Rs 1,214 crore, but increased over 4 percent sequentially.