JSW Energy Q2 Profit Rises 2.3%

29 Oct 2024 , 01:50 PM

JSW Energy Ltd reported a 2.3% year-over-year (YoY) increase in net profit for Q2 FY25, reaching ₹876.8 Crore, compared to ₹856.8 Crore in the same quarter of the previous year.

At the time of writing on October 29, 2024 at 1:48 pm, shares of JSW Energy is trading at ₹679.55 which is a 5.70% hike than the previous close. The stock has gained a total of 71% in the last one year, and 65% since the beginning of the year.

Revenue from operations slightly decreased by 0.7% YoY to ₹3,237.7 Crore, as per the company’s regulatory filing for the second quarter. At the operational level, EBITDA fell by 10.4% to ₹1,684.9 Crore in Q2, down from ₹1,880.4 Crore YoY, with the EBITDA margin narrowing to 52% from 57.7%.

Net power generation for the quarter increased by 14% YoY, totaling 9.8 billion units (BUs), driven by wind capacity additions and enhanced output from thermal and hydro plants.

Total renewable energy generation rose by 14% YoY to 5.0 BUs, with wind generation up by 37% and hydro by 5%, while thermal generation also grew by 14%, reaching 4.8 BUs.

Long-term power purchase agreements (PPA) expanded by 9% YoY, reflecting JSW Energy’s steady performance and demand.

The company’s financial stability is evidenced by a net debt-to-equity ratio of 0.9x and a net debt-to-EBITDA ratio of 4.1x, improving to 2.2x without capital work in progress (CWIP).

Receivables, based on days sales outstanding (DSO), stood at 70 days, with cash and cash equivalents totaling ₹5,719 Crore.

Short-term generation surged 51% YoY, reaching 1,001 million units, although thermal revenue grew moderately by 5% to ₹1,917 Crore due to lower short-term sales at Ratnagiri.

Wind generation expanded by 37% to 1.8 BUs, supported by successful capacity additions, while hydro generation increased by 5% to 2.9 BUs due to favorable conditions.

Short-term hydro sales rose significantly by 2.3 times YoY to 234 MUs, although renewable operating revenue decreased by 7% YoY to ₹1,281 Crore, impacted by a two-part tariff revision at JSW Hydro. Overall, operating EBITDA from renewable assets declined by 10% to ₹1,147 Crore.