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Informist, Tuesday, Oct. 22, 2024

 

By Rajesh Gajra

 

MUMBAI – JSW Energy Ltd.'s profitability and bottom line for the September quarter are likely to have deteriorated compared to the same quarter a year ago. The revenue, however, is expected to be stable on the back of higher sales volume due to higher generation and steady demand.

 

The company's consolidated net profit is estimated at INR 8.12 billion, down 4.4% on year and up 56% sequentially, according to the average of estimates from four brokerages. The estimates vary from a low of INR 6.38 billion to a high of INR 10.60 billion. If the company's net profit matches the average estimate, the on-year growth will be the lowest in five quarters.

 

The consolidated revenue is seen at INR 36.80 billion, higher by 12.9% over the year-ago quarter and 28% sequentially. The brokerage's estimates on revenue range from a low of INR 35.16 billion to a high of INR 37.93 billion.

 

The operating profit, as denoted by the earnings before interest, tax, depreciation, and amortisation, is estimated at INR 19.05 billion, down 5.4% on year and up 20% on quarter. The estimates range from a low of INR 15.86 billion to a high of INR 21.93 billion. If the EBITDA reported by the company matches the brokerages' average estimate, the on-year growth will be at a six-quarter low.

 

JSW Energy is likely to have sold 5.7% more units in Jul-Sept over the year-ago quarter, and along with 10% higher tariffs, the company will record a 17% increase, brokerage Kotak Securities' Institutional Equities Research said in a preview report. But Motilal Oswal Financial Services sees a much lower increase of 8% on year in revenue, notwithstanding the additional production from the recently commissioned Ind Bharat plant and "progressive commissioning of renewable energy which has been under construction".

 

Generation for JSW Energy increased 15% on year in the September quarter. "Incremental generation from Ind Bharat has driven generation for the company," brokerage Elara Capital said. Generation at its hydro plants went up 5% in Jul-Sept, it said. According to brokerage Antique Stock Broking, the Ind Bharat power plant will fuel growth for JSW Energy across revenue, EBITDA, and net profit, on a year-on-year basis.

 

The company will detail its earnings on Thursday. Analysts will closely track the impact of net debt on interest costs and the company's net debt-to-EBITDA ratio.

 

At 1402 IST, shares of JSW Energy were at INR 671.70, down 1.9% over Monday's close.

 

Following are the Jul-Sept consolidated earnings estimates for JSW Energy based on estimates from four brokerages: 

 

Brokerage firm	Net sales	Net profit	EBITDA
	----------(In INR million)--------
Antique Stock Broking Ltd	37,483	8,409	19,116
Elara Securities (India) Pvt Ltd	37,932	10,598	21,928
Kotak Institutional Equities	36,618	6,382	15,855
Motilal Oswal Financial Services Ltd	35,162	7,106	19,306
Average	36,799	8,124	19,051

 

End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Avishek Dutta

 

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