JSW Energy Q1 results: Positive performance in Q1FY24: EBITDA grows 18%, and strong cash returns for the company

JSW Energy declared its Q1 results today. The company is a subsidiary of JSW Group, a diversified conglomerate. JSW Energy is one of the largest private sector power producers in India, with a power generation capacity of over 10,000 megawatts.

Key highlights of Q1 FY24 reveal positive operational and financial performance for the company. Overall net generation increased by 14% year-on-year (YoY) driven by new renewable energy (RE) capacities and higher generation at Ratnagiri. Net long-term generation saw an 18% YoY increase, primarily due to higher generation at Ratnagiri and RE capacity additions. Net renewable generation surged by 35% YoY, attributed to RE capacity additions.

In terms of financials, Q1 FY24 EBITDA reached approximately INR 1,307 Crore, reflecting an 18% YoY growth. This was driven by contributions from Mytrah and RE capacity additions, resulting in a reported PAT of around INR 290 Crore. 

The balance sheet remains robust, with a net debt-to-equity ratio of 1.2x and net debt-to-EBITDA (Proforma TTM) ratio of 4.7x. Cash and cash equivalents amounted to approximately INR 2,572 Crore.

Regarding under-construction utility-scale generation projects, progress was made on a 2.0 GW wind project, with part commissioning received for 130 MW as of June 2023. The Kutehr hydroelectric project saw significant advancement, with around 96% tunneling completed. The Ind-Barath thermal power plant's restoration works are ahead of schedule, indicating potential early commissioning.

During the quarter, the company's total revenue decreased by 3% YoY to INR 3,013 Crore, primarily due to lower realization in thermal assets resulting from a decline in coal prices. However, the company saw a robust EBITDA contribution from renewable assets, leading to an 18% YoY increase in EBITDA, which stood at INR 1,307 Crore.

The Profit After Tax (PAT) for the quarter amounted to INR 290 Crore, lower than INR 440 Crore in the corresponding period of the previous year (adjusted for one-offs).

As of June 30, 2023, the company's consolidated net worth was INR 19,111 Crore, and net debt amounted to INR 22,904 Crore. This resulted in a net debt-to-equity ratio of 1.2x and a net debt-to-EBITDA ratio (Proforma TTM) of 4.7x. Receivables improved by 21% QoQ, with a days sales outstanding (DSO) of 58 days (excluding Mytrah).

The company maintains strong liquidity with cash balances of approximately INR 2,572 Crore as of June 30, 2023. Its robust balance sheet positions the company well to pursue value accretive growth opportunities, making it stand out among its peers.