JSW Energy sizzles after robust Q4 outcome

JSW Energy rose 3.30% to Rs 40.70 after the company's consolidated net profit soared to Rs 108.44 crore in Q4 March 2020 compared with Rs 3.87 crore in Q4 March 2019.

Total income declined 8.44% to Rs 1,847.65 crore in Q4 FY20 from Rs 2,018.16 crore in Q4 FY19 due to lower long-term sales and decline in fuel cost. The fuel cost decreased by 16.32% to Rs 996.32 crore in Q4 FY20 over Q4 FY19, due to moderation in the imported coal prices and lower generation.

Finance costs declined by 10.14% to Rs 248 crore from Rs 276 crore in the corresponding quarter of previous year, attributable to debt repayment/prepayment. EBITDA for the quarter increased by nearly 10% to Rs 629 crore from Rs 570 crore in the corresponding quarter of previous year.

Short term sales during the quarter were at 736 million units, higher by 29.80% as compared to 567 million units in Q4 FY19 due to higher short term sales at both Ratnagiri and Vijayanagar plants.

Consolidated net profit jumped 58.23% to Rs 1,099.92 crore on a 9.95% decline in total income to Rs 8,559.69 crore in the year ended March 2020 as against the year ended March 2019.

"Despite the COVID-19 situation, the company's plant operations continue to run smoothly, while ensuring adherence to necessary safety measures. Balance sheet and liquidity remains robust, well positioned to navigate the challenging circumstances," the energy producer said in a statement.

With respect to the acquisition of the GMR Kamalanga Energy, the company said that the transaction has been put on hold given the ongoing uncertainty and will be revisited once the situation normalizes.

In its outlook, JSW Energy said power demand over the short term is expected to be muted attributable to subdued economic activity due to the ongoing COVID-19 situation. There have been major disruptions in supply chain and logistics including disruptions in billing and collections for Discoms. In the short term, volumes and tariffs at merchant markets are expected to be adversely impacted due to a lackluster demand scenario.

It added that the pace of resolution of COVID-19 related issues, prompt realization of discom receivables, volatility in imported coal prices and merchant tariffs, and domestic coal availability especially for private sector power plants continue to remain key concerns for the sector.

JSW Energy is an integrated power company primarily engaged in generation and sale of power. Its business segments include power generation, power transmission, mining, power trading and equipment manufacturing.

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