JSW Energy’s Q4 net profit declines 68.5% to ₹272 cr, unveils ‘Strategy 2.0’
2 min read 23 May 2023, 09:20 PM ISTIts revenue from operations rose 18.27% to ₹10,331.81 crore in FY23 on a year-on-year basis
PremiumNEW DELHI: JSW Energy Ltd on Tuesday reported a net profit of ₹272.05 crore for the March ended quarter (Q4 FY23), a decline of 68.5% year-on-year.
Last year, the company had “got a one-time benefit of ₹492 crore due to a hydropower regulatory adjustment leading to ₹864 crore profit in FY22 Q4 (January-March 2022).
Higher finance costs at ₹233 crore during Q-4 FY23 also likely weighed on earnings.
Reported net profit, which is at ₹272 crore, was higher than the consensus estimate of ₹171.2 crore by analysts polled by Bloomberg.
During the March quarter, total revenue rose 9.4% on year to ₹ ₹2440.68 crore, driven by higher generation and an increase in renewable capacity.
Adjusted Ebitda (earnings before interest, tax, depreciation and amortisation) is at ₹881 crore, which rose 7% year-on-year.
Net generation during the quarter at 5,067 MUs (million units) rose 16% year-on-year, which the company attributed to strong merchant volumes, incremental generation from Vijayanagar Solar (225 MW) and contributions from the first phase of 27 MW of SECI tranche X.
Short-term sales increased three times to 629 MUs versus 226 MUs in the year-ago quarter while long-term sales in the quarter rose 7% YoY due to higher generation at Ratnagiri.
Ratnagiri plant operated at an average PLF (plant load factor) of 74% compared to 57% in Q4 FY22, and both short-term and long-term sales volumes increased. The Vijayanagar PLF improved to 58% from 54% in Q4FY22 due to higher short-term volumes in the quarter.
Further, the company also unveiled its ‘Strategy 2.0’ where the company has revealed its growth targets and is strengthening its presence in Energy Products and Services. The targets are multi-pronged with continued focus on increasing generation capacity to 20 GW by 2030 and energy storage of 40 GWh/5GW by 2030. In addition, the company is integrating backward in its value chain to solar module manufacturing with a capacity of 1GW and forward integrating into producing green hydrogen and its derivatives.
JSW Energy currently has 6.6 GW of operational capacity and 3.2 GW of under-construction projects which are expected to be operational within 2024, implying a 25% CAGR by the end of this calendar year. The stable cash flow generation is sufficient to drive the current growth plans with no equity raise required to deliver this growth.
“With one of the strongest balance sheets and a profitable cash-generative operating portfolio, the company is well positioned to pursue its growth aspirations," it said.
