JSW Energy

Consolidated net sales of JSW Energy for the quarter ended Dec 2021 stood at Rs 1893.54 crore, a growth of 17.69% over a year ago.  Overall power generation for the quarter stood lower by 3% YoY to 4496 million units dragged largely by 5%YoY fall in generation of thermal power plant (due to maintenance activities at Ratnagiri plant) to 3700 million units as the generation of renewables (hydro + solar) was up 13%YoY to 796 million units.  Higher sales despite lower power generation was largely due to increase in short term sales and higher realisation.

 

Operating profit margin has jumped from 37.6% to 41.8%, leading to 30.90% rise in operating profit to Rs 791.22 crore.  Employee cost increased from 3.47% to 3.59%.  Strong growth at operating level was largely due to higher short term sales.  Other expenses fell from 58.97% to 54.47%.   Power and Oil fuel cost fell from 51.13% to 43.24%.   Other income rose 80.16% to Rs 90.8 crore.  PBIDT rose 34.69% to Rs 882.02 crore.  Provision for interest rose 2.22% to Rs 195.43 crore.  PBDT rose 48.08% to Rs 686.59 crore.  Provision for depreciation fell 3.57% to Rs 281.21 crore.  Profit before tax grew 135.64% to Rs 405.38 crore. 

 

Share of profit/loss was 45.62% lower at Rs 2.11 crore.  Provision for tax was expense of Rs 86.67 crore, compared to Rs 33.84 crore.  Effective tax rate was 21.27% compared to 19.24%. Net profit attributable to owners of the company increased 162.23% to Rs 323.93 crore.  

Nine month performance 

 

Consolidated net sales   has increased 6.65% to Rs 5708.54 crore.  Operating profit margin has declined from 42.48% to 42.38%, leading to 6.40% rise in operating profit to Rs 2,419.34 crore.  Employee cost increased from 3.21% to 3.37%.   Other expenses fell from 54.31% to 52.88%.   Power and Oil fuel cost fell from 48.24% to 43.80%.   

Other income rose 93.12% to Rs 372.69 crore.  PBIDT rose 13.19% to Rs 2792.03 crore.  Provision for interest rose 5.90% to Rs 676.43 crore.  

PBDT rose 15.73% to Rs 2115.6 crore.  Provision for depreciation fell 2.15% to Rs 853.9 crore.  

Profit before tax grew 32.07% to Rs 1,261.70 crore.  Share of profit/loss was 34.46% lower at Rs 7.59 crore.  Provision for tax was expense of Rs 403.25 crore, compared to Rs 248.95 crore.  Effective tax rate was 31.77% compared to 25.75%.

Minority interest decreased 93.91% to Rs 1.77 crore.  Net profit attributable to owners of the company increased 25.46% to Rs 864.27 crore.  

Capacity addition plans and other operational highlights

The company that currently has 4.5 GW of power generation capacity comprising 3.2 GW of thermal and 1.4 GW of renewable Hydro has chartered a renewable-led growth to reach 10 GW (3.2 GW thermal, 1.6 GW hydro; 5.5 GW wind/solar) capacity by FY25 and 20 GW (3.2 GW thermal, 1.6 GW hydro; 15.5 GW wind/solar) by FY30. Towards this as end of Dec 2021, the company has about 2.5 GW of renewable power generation under-construction in full-swing: 1) SECI IX & X 1.26 GW Wind projects: LT PPAs signed; phase-wise commissioning from Q1 FY23; 2) Group Captive 958 MW: LT PPAs signed; 225 MW solar plant commissioning from Q4FY22; 3) 240 MW Kutehr HEP: Completed ~60% tunneling (up from ~50% in Q2), well ahead of timelines. Signed MoUs with Govt. of Rajasthan for 10 GW Renewable energy resources.

Further it has also signed Letter of Intent with Govt. of Rajasthan for 1 GW Hydro Pumped Storage projects.  Green Hydrogen: Scoping work near completion for pilot project.

Receivables decline 20% YoY amidst an increasing receivable scenario in the power sector

One of the strongest Balance Sheet, well-positioned to pursue growth -  Strong cash flows & efficient project management resulting in Net Debt reduction despite growth capex;  Net Debt to Equity at 0.37x;  Net Debt to EBITDA (TTM) at 1.74x;  Strong Liquidity: Cash & Cash Equivalents1 at Rs 2195 Crore.

Update on re-organisation of Green and Grey Business

To facilitate growth and unlock value for the shareholders, the renewable energy business will be housed under JSW Neo Energy Limited, a wholly owned subsidiary of the Company, while the thermal business will continue to be housed in the Company. Towards this the company has already completed  Transfer of 100% of the equity shares held by JSW Future Energy Limited in (i) JSW Renew Energy (Kar) Limited and (ii) JSW Renewable Energy (Dolvi) Limited, to JSW Neo Energy Limited.

The following steps are being undertaken to effectuate the re-organisation (in no particular order / sequential manner):

1. Merger of JSW Future Energy Limited with JSW Neo Energy Limited under a Scheme of Amalgamation to be approved by NCLT, wherein all the assets and liabilities of JSW Future Energy Limited will be transferred to JSW Neo Energy Limited - In Progress.

2. Transfer of 100% of the equity shares held by JSW Hydro Energy Limited in JSW Energy (Kutehr) Limited to JSW Neo Energy Limited - In Progress.

3. Transfer of 100% of the equity shares held by the Company in JSW Hydro Energy Limited to JSW Neo Energy Limited - To be done subsequent to completion of #2.

Other developments

Promoters stake was 74.66% as of 31 December 2021, compared to 74.87% as of 31 December 2020.  Promoters pledged stake was 13.92% as of 31 December 2021, compared to 35.62% as of 31 December 2020.  

JSW Energy : Consolidated Results

Quarter ended Year to Date Year ended Particulars 202112 202012 Var.(%) 202112 202012 Var.(%) 202103 202003 Var.(%) Net Sales (including other operating income) 1,893.54 1,608.86 17.69 5,708.54 5,352.58 6.65 6,922.20 8,272.71 -16.32 OPM (%) 41.79 37.57 422 bps 42.38 42.48 -10 bps 41.99 35.74 625 bps OP 791.22 604.43 30.90 2,419.34 2,273.77 6.40 2,906.58 2,956.86 -1.70 Other Inc. 90.80 50.40 80.16 372.69 192.98 93.12 237.45 286.98 -17.26 PBIDT 882.02 654.83 34.69 2,792.03 2,466.75 13.19 3,144.03 3,243.84 -3.08 Interest 195.43 191.18 2.22 676.43 638.75 5.90 895.65 1,051.07 -14.79 PBDT 686.59 463.65 48.08 2,115.60 1,828.00 15.73 2,248.38 2,192.77 2.54 Depreciation 281.21 291.62 -3.57 853.9 872.7 -2.15 1166.94 1168.05 -0.10 PBT 405.38 172.03 135.64 1261.7 955.3 32.07 1081.44 1024.72 5.54 Share of Profit/(Loss) from Associates 2.11 3.88 -45.62 7.59 11.58 -34.46 17.15 28.04 -38.84 PBT before EO 407.49 175.91 131.65 1269.29 966.88 31.28 1098.59 1052.76 4.35 EO Income 0 0 - 0 0 - 0 61.46 - PBT after EO 407.49 175.91 131.65 1269.29 966.88 31.28 1098.59 1114.22 -1.40 Taxation 86.67 33.84 156.12 403.25 248.95 61.98 275.91 33.04 735.08 PAT 320.82 142.07 125.82 866.04 717.93 20.63 822.68 1081.18 -23.91 Minority Interest (MI) -3.11 18.54 LP 1.77 29.05 -93.91 27.2 -18.74 PL Net profit 323.93 123.53 162.23 864.27 688.88 25.46 795.48 1099.92 -27.68 P/(L) from discontinued operations net of tax 0 0 - 0 0 - 0 0 - Net profit after discontinued operations 323.93 123.53 162.23 864.27 688.88 25.46 795.48 1099.92 -27.68 EPS (Rs)* 1.97 0.75 162.23 5.26 4.19 25.46 4.84 6.32 -23.46 * EPS is on current equity of Rs 1,644.03 crore, Face value of Rs 10, Excluding extraordinary items. # EPS is not annualised bps : Basis points EO : Extraordinary items Figures in Rs crore Source: Capitaline Corporate Database

JSW Energy : Standalone Results

Quarter ended Year to Date Year ended Particulars 202112 202012 Var.(%) 202112 202012 Var.(%) 202103 202003 Var.(%) Net Sales (including other operating income) 1,001.57 691.75 44.79 2,561.72 2,168.13 18.15 2,897.53 4,313.99 -32.83 OPM (%) 36.92 26.77 1,015 bps 30.32 25.52 480 bps 28.08 20.73 735 bps OP 369.75 185.18 99.67 776.66 553.25 40.38 813.50 894.17 -9.02 Other Inc. 24.49 8.39 191.90 197.06 53.73 266.76 62.41 197.90 -68.46 PBIDT 394.24 193.57 103.67 973.72 606.98 60.42 875.91 1,092.07 -19.79 Interest 31.02 45.95 -32.49 101.17 168.19 -39.85 210.1 321.95 -34.74 PBDT 363.22 147.62 146.05 872.55 438.79 98.85 665.81 770.12 -13.54 Depreciation 78.96 90.04 -12.31 249.67 270.72 -7.78 358.07 369.27 -3.03 PBT 284.26 57.58 393.68 622.88 168.07 270.61 307.74 400.85 -23.23 PBT before EO 284.26 57.58 393.68 622.88 168.07 270.61 307.74 400.85 -23.23 EO Income 0 0 - 0 0 - 0 23.02 - PBT after EO 284.26 57.58 393.68 622.88 168.07 270.61 307.74 423.87 -27.40 Taxation 93.05 22.46 314.29 209.91 69.35 202.68 121.56 -73.94 PL PAT 191.21 35.12 444.45 412.97 98.72 318.32 186.18 497.81 -62.60 P/(L) from discontinued operations net of tax 0 0 - 0 0 - 0 0 - Net profit after discontinued operations 191.21 35.12 444.45 412.97 98.72 318.32 186.18 497.81 -62.60 EPS (Rs)* 1.16 0.21 444.45 2.51 0.60 318.32 1.13 2.44 -53.55 * EPS is on current equity of Rs 1,644.03 crore, Face value of Rs 10, Excluding extraordinary items. # EPS is not annualised bps : Basis points EO : Extraordinary items Figures in Rs crore Source: Capitaline Corporate Database

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