JSW Energy gains after strong Q1 earnings

22 Jul 2022 , 12:26 PM

Net sales climbed 75.2% to Rs 3,026.27 crore in Q1 FY23 as against Rs 1,727.54 crore recorded in the corresponding quarter previous year. The companys profit before tax surged 194.9% to Rs 752.78 crore in Q1 FY23 compared with Rs 255.24 crore posted in Q1 FY22. During the quarter, total revenue increased by 68% YoY to Rs 3,115 crore from Rs 1,860 crore reported in Q1 FY22. As a result, EBITDA for the quarter was higher by 34% YoY at Rs 1,111 crore as against Rs 830 crore posted in the same period a year ago. The increase is primarily attributable to higher contribution from short term sales, solar capacity addition at Vijayanagar and 45MW uprating at Karcham Wangtoo. Underlying finance cost during the quarter decreased by 2.5% YoY to, Rs 193 crore on the back of 18 basis points reduction in the weighted average cost of debt partially offset by increase in gross debt. The consolidated net worth and consolidated net debt as on 30 June 2022 were Rs 16,638 crore and Rs 7,720 crore respectively, resulting in a net debt to equity ratio of 0.46x and net debt/TIM EBITDA of 1.75x. Receivables days declined to 45 days on 30 June 2022 from 85 days on 30 June 2021. Liquidity continues to be strong with cash balances at Rs 1,825 crore as of 30 June 2022. On the operational front, the companys overall generation was higher by 14% YoY on the back of strong merchant demand, better hydrology and capacity increase in renewable energy (RE). Total Thermal Generation was up 12% YoY, driven by increased merchant market sales. The Total Hydro Generation inched higher by 13% YoY due to better hydrology and uprating at Karcham Wangtoo. Long Term sales during the quarter stood at 4,976 million units were at similar levels of Q1 FY22 (4,994 million units) as the higher sales at Hydro business were offset by lower sales at Thermal businesses. Short term sales during the quarter was at 874 million units versus 147 million units in Q1 FY22 due to higher sales at both Vijayanagar and Ratnagiri plants. The companys diversified portfolio and favourable placement in Merit Order Despatch underpins higher generation and offtake. JSW Energy said it is pursuing a growth strategy to expand from the current platform capacity of 7.3 gigawatt (GW) to 10 GW by FY25, and 20 GW by FY30, with the entire capacity addition being driven by renewables. 2.25 GW of greenfield renewable energy capacity is currently under construction in full swing. JSW Energys current portfolio comprises 57% renewable capacity. This is expected to pivot to ~70% renewable energy by FY25 and ~85% renewable energy by FY30. With one of the strongest balance sheets in the sector and a profitable and cash generative operating portfolio, the company is well positioned to pursue its growth aspiration. 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. JSW Energy has joined the global movement of leading companies that are aligning their business to limit global temperature rise to 1.5?C above preindustrial levels, and reach net-zero value chain emissions by no later than 2050. JSW Energy has set an ambitious target for 50% reduction in carbon footprint by 2030 and achieving Carbon Neutrality by 2050 by transitioning towards renewable energy. The company has committed to set a science-based target through the Science Based Targets initiative. JSW Energy is one of the leading private sector power producers in India and part of the $22 billion JSW Group. JSW Energy has established its presence across the value chain of the power sector with diversified assets in power generation, and transmission. Powered by Capital Market – Live News