JSW Energy

PBT up 29% but net up 7% thanks to higher tax

Aug 17, 2019 01:08 IST capital market

JSW Energy has registered 2% growth in consolidated sales to Rs 2412.17 crore for the quarter ended June 2019. Facilitated further by 60 bps expansion in OPM to 33.5% the operating profit was up by 4% to Rs 809.25 crore. With other income stand lower by 23% to Rs 51.82 crore, the PBIDT was up by 2% to Rs 861.07 crore. But gained by lower interest cost, flat depreciation the PBT (before share of P/L from JV) was up by 25% to Rs 300.02 crore. The share of profit/loss from associate more than doubled (up 106%) to Rs 25.56 crore. Thus the PBT was up by 29% to Rs 325.58 crore. However dragged by higher taxation (Jumped up by 275% to Rs 88.31 crore) the growth at PAT was restricted at Rs 237.27 crore, a growth of just 3%. With minority interest being share of loss of Rs 7.11 crore (compared to a share of profit of Rs 0.36 crore), the net profit (attributable to owner) was up by 7% to Rs 244.38 crore.
  • Expansion in OPM to the tune of 60 bps to 33.5% is largely due to lower fuel cost. The cost of fuel was lower by 220 bps to 56.6%. The cost of electricity purchased was down by 20 bps to 0.2%. The staff cost was flat at 2.6%. However OE was up by 180 bps (to 7.1%).
  • Lower fuel cost is largely due to moderation in imported coal price. Moreover the increase in share of hydro and renewable in total power mix in Q2FY20 compared to corresponding previous quarter also helped lower coal consumption. The share of hydro was 32% in Q2FY20 compared to 24% in corresponding previous period. Net generation was down by 4% to 5867 MUs.
  • Shorterm sales during the quarter were lower at 722 million units as compared to 1147 million units in Q1FY19 primarily due to lower short term sales at both Vijaynagar & Ratnagiri.

Management comment on Outlook

Power demand over the next 3 to 5 year is expected to improve backed by rapid urbanization and various schemes undertaken by the government such as Power for All, 24X7 Power and SHAKTI. The country almost achieved universal household electrification in FY2019 which should unlock the latent power demand from rural India. On the supply side, capacity addition is shedding momentum and with the retirement of old and inefficient thermal plants demand supply environment should become more balanced over the medium term. This bodes well for existing thermal plants wherein we should see the PLFs inching up. The sector is also likely to see increased consolidation with several stressed power assets available at attractive valuations. RBIs new prudential framework is a positive development, aimed at expeditious resolution process. However, volatility in imported coal prices and merchant prices, and domestic coal availability especially for private sector power plants continue to remain key concerns for the sector.

JSW Energy: Consolidated Financial Results

 

1906 (3) 1806 (3) Var. (%) 1803 (12) 1803 (12) Var. (%)
Sales 2412.17 2360.56 2 9137.59 8048.96 14
OPM (%) 33.5 32.9 31.2 34.3
OP 809.25 776.24 4 2853.12 2762.54 3
Other Income 51.82 67.31 -23 367.97 465.02 -21
PBIDT 861.07 843.55 2 3221.09 3227.56 0
Interest 269.80 312.98 -14 1192.40 1455.91 -18
PBDT 591.27 530.57 11 2028.69 1771.65 15
Depreciation 291.25 289.89 0 1163.69 966.08 20
PBT before EO & P/L from associates 300.02 240.68 25 865.00 805.57 7
Share of Profit/( Loss) from Associates 25.56 12.43 106 31.93 -49.49 -165
PBT before EO 325.58 253.11 29 896.93 756.08 19
EO Income 0.00 0.00 0.00 -417.94 -100
PBT after EO 325.58 253.11 29 896.93 338.14 165
Taxation 88.31 23.58 275 212.44 253.23 -16
PAT 237.27 229.53 3 684.49 84.91 706
Minority Interest -7.11 0.36 PL -10.64 6.94 PL
Net profit 244.38 229.17 7 695.13 77.97 792
EPS (Rs)* # # 4.2 1.1
* Annualised on Current equity of Rs 1640.10 crore. Face Value: Rs 10
Var. (%) exceeding 999 has been truncated to 999
# Engineering and Construction activity being substantially seasonal EPS for quarter/ half year was not calculated
LP: Loss to Profit PL: Profit to Loss
Figures in Rs crore
Source: Capitaline Corporate Database

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