Silver Lining

Satluj Jal Vidyut Nigam (SJVN) is a joint venture between the central Government and the Government of Himachal Pradesh (HP) and falls under the ambit of the Ministry of Power. The company operates and maintains hydro-electric power projects with the capacity of 1500 MW, which makes it one of the largest hydro power project of its time. Strengths SJVN enjoys high margin of 97 per cent over the past five years and net margin of 56 per cent in FY13, which is the highest among its peers and other segments of the power sector. SJVN is generating a very healthy free cash flow year on year amounting to ₹1,278 crore in FY13. Due to its free cash flows the company has been able to implement new projects without depending on too much debt. Its debt to equity ratio of 0.22 is among the lowest among other power companies. The company has increased its plants efficiencies

This article was originally published on March 25, 2014.