JSW Energy gains after Q4 PAT climbs 17% to Rs 105 cr

JSW Energy rose 1.40% to Rs 156.05 after the company's consolidated net profit jumped 16.5% to Rs 104.75 crore on 12.5% decline in net sales to Rs 1,569.62 crore in Q4 March 2021 over Q4 March 2020.

Profit before tax surged 42.4% to Rs 131.71 crore in Q4 FY21 as against Rs 92.50 crore in Q4 FY20. The Q4 earnings were announced after trading hours on Friday, 25 June 2021.

EBITDA grew 8% to Rs 677 crore in Q4 FY21 from Rs 629 crore in Q4 FY20. The consolidated net worth and consolidated net debt as on 31 March 2021 were Rs 14,507 crore and Rs 6,206 crore respectively, resulting in a net debt to equity ratio of 0.43x. Cash balances stood at a healthy Rs 2,137 crore.

The board has recommended a dividend of Rs 2 per equity share.

During the financial year, JSW Energy's consolidated net profit slumped 23.90% to Rs 822.68 crore on 16.32% fall in revenue from operations to Rs 6,922.20 crore in FY 2021 over FY 2020.

In its outlook, JSW Energy stated: "Over the medium term, power sector outlook is sanguine, as rapid urbanization and stabilization of various schemes undertaken by the Government such as 'Power for All' and '24 x 7 Power' is expected to spur the power demand. With universal household electrification nearly complete in the country, latent power demand from rural India should boost demand. As a signatory to the Paris Accord, India plans to achieve a low-carbon future, and has set a 450 GW Renewable capacity target by 2030. Hence, the incremental power demand is expected to be largely met by addition of renewable energy capacity in the country.

"Further, the Government measure of liquidity infusion package for Discoms via PFC/REC, helped the discoms in reducing their outstanding dues during the last few months of the fiscal. Going forward, financial health of discoms is key to a healthy power market in India."

Further, JSW Energy announced that India Ratings and Research (Ind-Ra), on 24 June 2021 assigned a rating of 'IND AA-/Stable' on the long-term facility and rating of 'IND A1+' on the short-term bank facilities of the company's subsidiary, JSW Energy (Barmer).

JSW Energy is one of the leading private sector power producers in India. It has established its presence across the value chains of power sector with diversified assets in power generation, and transmission.

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