JSW Energy adjusted Profit After Tax at Rs261cr

Reported Finance cost during the quarter increased 21% YoY to `290 Crore from `240 Crore in the corresponding quarter of previous year.

Jul 30, 2021 05:07 IST India Infoline News Service

JSW Energy
JSW Energy Limited (reported its results for the first quarter (“Q1 FY22” or the “Quarter”) ended June 30, 2021.

On a comparable basis, adjusting for one-time finance charges, Profit after Tax (PAT) stood at Rs261cr in Q1 compared to reported PAT of Rs213cr, in corresponding quarter of previous year. Reported PAT for the quarter stood at Rs201cr.

Total Comprehensive Income of the Company for the quarter stood at Rs1,427 Crore vis-a-vis `556 Crore in the corresponding period of previous year.

The Consolidated Net Worth and Consolidated Net Debt as on June 30, 2021 were `15,939 Crore and `6,565 Crore respectively, resulting in a Net Debt to Equity ratio of 0.41x and Net Debt/TTM EBITDA of 2.09x. Cash balances stood at a healthy `1,648 Crore.

During the quarter, total revenue stood at `1,860 Crore vis-à-vis `1,887 Crore in Q1 FY21, primarily due to reduction attributable to the impact of job work at the standalone entity, partly offset by increase in long term sales and other income.

The fuel cost for the quarter decreased by 11% YoY to `812 Crore, primarily attributable to impact of job work at standalone entity, partly offset by increase in long term sales at standalone entity as well higher coal prices.

EBITDA for the quarter was marginally up YoY at `830 Crore.

Reported Finance cost during the quarter increased 21% YoY to `290 Crore from `240 Crore in the corresponding quarter of previous year. This is primarily due to one-time expenses of `92 Crore during Q1 FY22 towards prepayment charges and write-off of unamortised other borrowing cost relating to repayment of rupee denominated loans of JSW Hydro Energy Limited. The loans have been replaced with a USD denominated green bond issued in Q1 FY22.

Growth Strategy:

JSW Energy is pursuing a growth strategy to expand from the current capacity of 4.6 GW to 10 GW by FY25, and 20 GW by FY30, with the entire capacity addition being via renewables.  2.5 GW of renewable energy capacity is currently under construction in full swing:
• SECI IX - 810 MW: 270 MW PPA signed in July; 540 MW was signed earlier in May
• SECI X - 450 MW Wind Project: PPA to be signed in Q2FY22
• Solar/ Wind Group Captive with JSW Steel: PPA signed in July
• 240 MW Kutehr Hydro Project: PPA under finalization with Haryana discom
• Acquired/Locked-in resources for all 2.5 GW under-construction projects
• Received CTU transmission connectivity approvals for the SECI-IX and SECI-X projects
• Orders placed for Solar Modules and Term sheets signed for Wind Turbines with leading equipment manufacturers

JSW Energy’s current portfolio comprises 30% renewable energy capacity. This is expected to pivot to ~70% renewable energy by FY25 and ~85% renewable energy by FY30.  JSW Energy has one of the strongest balance sheets in the sector (Net Debt to EBITDA at 2.09x) and a profitable and cash generative operating portfolio, which will be used to fund this expansion program, and no equity dilution is envisaged for this growth.

Green Hydrogen: JSW Future Energy Limited, a 100% subsidiary of JSW Energy Limited has entered into a framework agreement with Australian Fortescue Future Industries Pty Ltd, a 100% subsidiary of Fortescue Future Industries Pty Ltd (FFI) to collaborate and conduct scoping work on potential projects relating to the production of green hydrogen and utilizing it for green steel making, hydrogen mobility, green ammonia and other mutually agreed industrial applications in India. The collaboration will enable both parties to explore opportunities to tap into the significant clean energy market opportunity in India and be a front-runner in a future hydrogen economy.

Related Story

Open Free Demat Account (Rs699)