JSW Energy spurts after Q2 PAT jumps 37% YoY to Rs 466 cr

JSW Energy rallied 5.25% to Rs 334.55 after the company's consolidated net profit surged 37.3% to Rs 465.67 crore on 14.4% rise in revenue from operations to Rs 2,387.48 crore in Q2 FY23 over Q2 FY22.

Consolidated profit before tax declined marginally to Rs 604.68 crore in Q2 FY23 as against Rs 606.56 crore posted in the same period last year.

During the quarter, total revenue increased by 16% year on year (YoY) to Rs 2,596 crore from Rs 2,237 crore reported in Q2 FY22. The rise in total revenue was mainly driven by increase in fuel costs (which are pass through in nature).

EBITDA for the quarter was higher by 2% YoY at Rs 1,098 crore as against Rs 1,080 crore reported in the corresponding period previous year. The increase is primarily attributable to the contribution from the 225 MW solar capacity addition at Vijayanagar and 45 MW uprating at Karcham Wangtoo, partially offset by lower short term sales YoY, the company said.

Finance cost during the quarter rose 7% YoY to Rs 204 crore because of additional borrowings due to ongoing growth capex. Weighted average cost of debt increased by 7 bps quarter on quarter to 7.94%.

The consolidated net worth and consolidated net debt as on 30 September 2022 were Rs 17,593 crore and Rs 7,874 crore respectively, resulting in a net debt to equity ratio of 0.45x and net debt/TTM EBITDA of 1.77x.

Receivables days' declined to 66 days on 30 September 2022 from 81 days as on 30 September 2021. Liquidity continues to be strong with cash balances at Rs 3,327 crore as of 30 September 2022. The company said that it has one of the strongest balance sheets among its peers with a large headroom to pursue value accretive growth opportunities.

Long Term sales during the quarter stood at 6,481 million units, lower by 1% YoY as lower thermal generation was partly offset by higher generation at solar operations at Vijayanagar. Short term sales during the quarter came at 194 million units versus 236 million units in Q2 FY22 due to weak merchant market demand.

JSW Energy said it is pursuing a growth strategy to expand its installed capacity to 10 gigawatt (GW) by FY25 and 20 GW by FY30. With a locked-in capacity of 9.9 GW the company is expected to achieve its FY25 target well ahead of the articulated timelines.

In its outlook, JSW Energy stated, "Over the medium term, the power sector outlook is healthy, as rapid urbanization and stabilization of various Govt. schemes are expected to boost overall power demand. The Government has further announced Performance Linked Incentive (tranche II) for High Efficiency Solar PV Modules manufacturing with an additional outlay of approximately 19,500 crores.

Meanwhile, the company's board approved raising of long term funds upto Rs 2,500 crores through, issuance of non-convertible debentures (NCDs) by way of private placement and has authorised the finance committee to decide on all matters relating to the issuance of the debentures from time to time, including finalization and approval of the detailed terms of issue.

JSW Energy is one of the leading private sector power producers in India and part of the $22 billion JSW Group. JSW Energy has presence across the value chains of the power sector with diversified assets in power generation, and transmission.

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