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Informist, Thursday, Oct. 24, 2024

 

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--JSW Energy: Jul-Sept wind generation 1.80 bln units vs 1.32 bln units
--JSW Energy: Jul-Sept solar generation 275 mln units vs 288 mln units
--JSW Energy: Jul-Sept hydro generation 2.92 bln units vs 2.77 bln units
--JSW Energy: Jul-Sept thermal generation 4.85 bln units, up 13% on year
--JSW Energy: Jul-Sept consol EBITDA INR 19.07 bln, dn 5% on year
--JSW Energy: Jul-Sept net generation 9.8 bln units, up 14% on year
--JSW Energy Apr-Sept consol revenue INR 61.17 bln vs INR 61.87 bln
--JSW Energy Apr-Sept consol net profit INR 13.75 bln vs INR 11.40 bln
--JSW Energy Jul-Sept consol revenue INR 32.38 bln vs INR 32.59 bln
--JSW Energy Jul-Sept consol net profit INR 8.53 bln vs INR 8.50 bln
--Analysts saw JSW Energy Jul-Sept consol net profit INR 8.12 bln

--JSW Energy: Jul-Sept capacity addition 6.5 GW, mainly due to renewables

--JSW Energy: Medium-term power sector outlook is healthy

--JSW Energy: Urbanisation, govt capex, investments to boost power demand

--JSW Energy: Supply increase to lag demand growth, see tight demand-supply

--JSW Energy: Expect to commission green hydrogen supply to JSW Steel Mar'25

--JSW Energy: Jul-Sept thermal plant load factor 68% vs 70% year ago

 

MUMBAI – The JSW group's electricity generation company JSW Energy Ltd. Thursday reported mixed earnings and revenue numbers with the net profit beating the Street estimate but revenue missing it. In contrast, however, the net profit growth on year was the lowest in five quarters, while revenue growth was higher than that in the previous quarter. The operating profit also recorded a decline due to a sharp escalation in fuel costs and other expenses.

 

In Jul-Sept, the consolidated revenue of JSW Energy declined 0.7% on year to INR 32.38 billion, and below analysts' average estimate of INR 36.80 billion. The revenue declined even as net electricity generation rose 14% on year to 9.8 billion units driven by a 14% growth each in thermal and renewables.

 

Due to higher operating costs, the consolidated operating profit, as denoted by the earnings before interest, tax, depreciation, and amortisation declined by 5% on year to INR 19.07 billion and the consolidated profit attributable to shareholders of the company increased marginally by 0.4% on year to 8.53 billion, which was higher than the Street estimate of INR 8.12 billion.

 

The thermal power generation in the September quarter was 4.8 billion units, up 14% on year, and driven by higher generation from its Ratnagiri and Vijayanagar thermal plants. The renewable power generation was 5 billion units, also up 14%. In the September quarter, wind generation, where additional capacity was made, rose 37% on year, while hydro generation was up 5% on year. The overall long-term power purchase agreement generation was up 9% on year, the company said in a press release.

 

Fuel costs, which made up for a bulk of its total expenses, jumped 21% on year to INR 11.52 billion. Other expenses, the next major operating expense, were up sharply by 22% on year to INR 2.85 billion. The sharp rise in these two expenses hit the operating profit of the company during the quarter. The EBITDA margin fell to 55% in Jul-Sept from 59% in the year-ago quarter.

 

The decline in operating profit adversely affected the bottom-line growth. It would have been worse had depreciation and amortisation costs not declined 4.1% on year to INR 3.92 billion. The net profit was aided by a substantial rise of 73% on year in other income to INR 2.22 billion.

 

Finance costs inched up 0.9% on year to INR 5.18 billion during the September quarter. The company's net debt moved up to INR 248.8 billion at the end of September from INR 233.4 billion as of Jun 30. Of this, net debt for capital work-in-progress was INR 117.1 billion, up from INR 101.8 billion, and the net debt for operational projects was INR 131.7 billion, marginally higher than INR 131.6 billion. Excluding current work-in-progress, the net debt to EBITDA ratio was 2.2 times as of Sep 30.

 

During the September quarter, JSW Energy's thermal plant load factor declined to 68% from 70% a year ago. However, the long term thermal plant load factor increased to 76% from 72%. The long term generation from thermal plants was up 7% on year in Jul-Sept, while the short term generation was up 51% on year. The overall net thermal plant generation was 14% higher on year in the September quarter.

 

The company said that its hydrogen plant was on track to meet the commissioning deadline of March. Equipment deliveries have started and civil works are in progress for the 3,800 tonne-per-annum plant which will cater to JSW Steel's power requirement under a supply agreement between the two group companies.

 

The total installed capacity of JSW Energy was 453 gigawatts as of Sept. 30, with 6.5 GW getting added during the September quarter, mainly due to capacity additions in the renewables segment.

 

The company said over the medium term, the power sector outlook is healthy as rapid urbanisation, government-led capital expenditure, and a strong investment cycle are expected to boost overall power demand. "However, with base load capacity increase... lagging the demand growth, supply increase is expected to lag demand growth over the medium term, boding for tight demand-supply conditions," the company said in the press release.

 

Shares of JSW Energy ended Thursday 2.4% lower at INR 671 on the National Stock Exchange. The company announced its earnings after market hours.   End

 

Edited by Akul Nishant Akhoury and Tanima Banerjee

 

 

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