JSW Energy Ltd Share Price – NSE  /  BSE

Power Generation & Distribution, Mid Cap

Higher profitability was driven by robust contribution from Acquired RE portfolio, merchant sales and hydro truing up impact.

Total revenue increased by 30% YoY to Rs 3,387 crore in the second quarter due to incremental revenue from renewable, portfolio and strong thermal performance on the back of a buoyant merchant market.

While EBITDA jumped by 83% to Rs 2,008 crore, EBITDA margin improved by 1700 basis points to 59% in Q2 FY24 over Q2 FY23. This was due to robust EBITDA contribution from acquired renewable assets, short term thermal sales and a truing-up impact at hydro business.

The company's finance costs during the quarter increased to Rs 514 crore vis-a-vis Rs 486 crore in Q1 FY24. The finance cost increased QoQ due to higher loan drawals for the ongoing growth capex and certain one-off charges upon completion of the debt refinancing/ resizing activity at the acquired RE portfolio. The weighted average cost of debt in the quarter stood at 8.51% (vis-a-vis 8.68% in Q1 FY24), reflecting the full impact of the debt refinancing exercise at the acquired RE portfolio.Profit before tax in Q2 FY25 stood at Rs 1,086 crore, up by _ % from Rs 600 crore in Q2 FY23.

Cash PAT generated during the quarter stood at Rs 1,180 crore implying 20% cash returns on adjusted net worth. The company's cash & cash equivalents as on 30 September 2023 stood at Rs 3,291 crore.

The consolidated net worth and net debt as on 30 September 2023 were Rs 19,877 crore and Rs 24,260 crore, respectively, resulting in a net debt to equity ratio of 1.2x, net debt/EBITDA of 4.6x and net debt to normalised EBITDA at 3.3x. Receivables improved 10% YoY with days sales outstanding (DSO) of 56 days.

The company said that the overall power generation increased by 11% YoY to 459 BUs in Q2 FY24. Renewable power generation increased by 20% YoY driven by wind generation which was up 30% YoY while hydro generation was down 13% YoY in the quarter. Thermal generation increased 15% YoY in Q2 FY24 to 322 BUs implying thermal PLFs of 68%.

On the supply side, installed capacity stood at 425 GW as on 30 September 2023. In Q2 FY24, net installed capacity increased by 3.5 GW, due to addition in 2.1 GW of renewable capacity and 1.4 GW of thermal capacity.

JSW Energy is primarily engaged in the business of generation of power with principal places located at Vijayanagar (Karnataka), Ratnagiri (Maharashtra), Nandyal (Andhra Pradesh) and Salboni (West Bengal).

The scrip had lost 3.35% to end at Rs 388.15 on the BSE yesterday.

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Net profit of JSW Energy rose 82.57% to Rs 850.16 crore in the quarter ended September 2023 as against Rs 465.67 crore during the previous quarter ended September 2022. Sales rose 36.52% to Rs 3259.42 crore in the quarter ended September 2023 as against Rs 2387.48 crore during the previous quarter ended September 2022.

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JSW Energy will hold a meeting of the Board of Directors of the Company on 20 October 2023.

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Revenue from operations fell 3.3% to Rs 2,927.85 crore in Q1 FY24 as compared with Rs 3,026.27 crore posted in corresponding quarter last year, as the incremental revenue from Mytrah and renewable capacity additions was offset by lower realization in thermal assets on account of decline in coal prices

EBITDA stood at Rs 1,307 crore in Q1 FY24, was higher by 18% YoY driven by robust EBITDA contribution from renewable assets. EBITDA margin stood at 43% in Q1 FY24 as against 36% in Q1 FY23.

Finance costs during the quarter jumped 151.81% to Rs 486 crore as compared with Rs 193 crore in Q1 FY23. After adjusting for Rs 41 crore of one-time prepayment charges, underlying finance cost stood at Rs 445 crore as against Rs 193 crore in Q1 FY23. The additional finance cost is driven by interest cost for Mytrah amounting to Rs 170 crore and ongoing growth capex. The weighted average cost of debt stood at 8.68% as compared with 8.45% in Q4 FY23.

The consolidated Net Worth and Net Debt as on 30 June 2023 were Rs 19,111 crore and Rs 22,904 crore respectively, resulting in a Net Debt to Equity ratio of 1.2x.

As per the World Bank's latest 'Global Economic Prospects' (June 2023), global growth is likely to slow down to 2.1% in 2023 amid continued monetary policy tightening to rein in high inflation before a tepid recovery in 2024 to 2.4%. For India, the World Bank estimates GDP growth of 6.3% in 2023 and 6.4% in 2024.

As per the Reserve Bank of lndia5 (RBI), India's GDP saw a growth of 6.1% YoY in Q4 FY23 and 7.2% in FY23 on the back of strong demand and investment.

In its outlook, JSW Energy stated, “Over the medium term, the power sector outlook is healthy, as rapid urbanization and stabilization of various Govt. schemes are expected to boost overall power demand.”

Meanwhile, Moddy's has affirmed the ratings of the company's step - down wholly owned subsidiary, JSW Hydro Energy $707 million senior secured notes due 2031 at Ba1.

JSW Energy is primarily engaged in the business of generation of power with principal places located at Vijayanagar (Karnataka), Ratnagiri (Maharashtra), Nandyal (Andhra Pradesh) and Salboni (West Bengal).

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