JSW Energy reports two-fold surge in profit to Rs 320 cr in Q3

Revenue of the company stood at Rs 1,984 crore as against Rs 1,659 crore in Q3FY21. JSW said the rise was primarily due to "increase in short term sales and realisation"

JSW Energy reported a profit of Rs 320 crore for the third quarter (Q3) of the current fiscal, a more than double jump from the profit during corresponding period, last financial year. The company attributed this to higher revenue.

During Q3FY22, the revenue of the company stood at Rs 1,984 crore as against Rs 1,659 crore in Q3FY21. JSW said the increase in revenue was primarily due to “increase in short term sales and realisation”.

As a result, EBITDA for the quarter was higher by 35 per cent year-on-year at Rs 882 Crore vis-à-vis Rs 655 Crore in the corresponding period of previous year.

“The company continues to deliver strong EBITDA on the back of stable cash flow from long term portfolio, superior O&M practices, with opportunistic gains from buoyancy in the short-term markets,” JSE Energy said in a public statement.

On the power sale front, the company’s generation units witnessed a slowdown in the long-term sale of power which was down to 4,173 million units as against 4,300 million units in Q3 FY21.

“This was partially offset by higher sales at Vijayanagar plants and Hydro Plants.  Short term sales during the quarter stood higher by 3 per cent YoY at 323 million units (versus 312 million units in Q3 FY21) primarily due to higher short-term sales at Vijayanagar,” the company said.

During the quarter, the Company’s Board gave approval for corporate reorganisation received in November 2021. The renewable energy businesses would now be under ‘JSW Neo Energy Limited’, a wholly owned subsidiary of the JSW Energy, while the thermal businesses would remain under JSW Energy and other existing subsidiaries.

JSW has also initiated its pilot green hydrogen production plan, with scoping work nearing completion , it said. The company has also signed a Letter of Intent with the government of Rajasthan for developing a 1GW Hydro Pumped storage plant.

The Consolidated Net Worth and Consolidated Net Debt as on Dec 31, 2021 were Rs 16,082 crore and Rs 6,021 crore, respectively, said JSW Energy.

“This results in a net debt to equity ratio of 0.37x and Net Debt/TTM (trailing twelve months) EBITDA of 1.74x. The Company’s balance sheet is one of the healthiest among its peers with a large headroom to pursue value accretive growth opportunities,” said the company’s statement adding, the cash balances of JSW Energy stood at Rs 2,195 crore as of Dec 31, 2021.