Last Updated on October 28, 2023 by BFSLTeam BFSLTeam
On October 20, 2023: JSW Energy (BSE, NSE: JSWENERGY) announced its Q2 2023-24 financial results, stressing a rise in company revenue to 30% YoY to ₹3,387 crore in the quarter ended September 2023 from ₹2,596 crore in the quarter Q2FY23. Net profit also saw a YoY rise, indicating a largely positive Q2 result report.
Table of Content
Major Highlights
Here are the main highlights of the Q2 results of JSW Energy:
- The Overall Net Generation was up by 29% YoY at 8.6 BUs and this was driven by healthy merchant sales, contributions from acquired ER portfolios, and organic ER capacity additions.
- The Net Renewable Generation was up by 47% YoY at 4.4 BUs and the total thermal generation saw a rise of 15% YoY at 4.3 BUs
- The Net Long Term Generation was increased by 22% YoY driven by a higher generation at the Ratnagiri plant.
- JSW Energy reported its highest-ever quarterly EBITDA and reported PAT, both of which increased 83% YoY.
- EBITDA increased 54% while PAT increased two-fold on a sequential basis.
- Receivables improved 10% YoY.
- The company reported a sound balance sheet, perhaps the best in its class.
- JSW Energy signed MoUs with JSW Steel to provide progressive RE solutions by the year 2030.
Additional Read: Q2 Results Dashboard
Performance – YoY and QoQ Aspects
Here are some important features of the Q2 Result to consider:
- In Q2, the total revenue of the company saw a surge to ₹3,387, an increase of 30% YoY, compared to the total revenue in Q2 of the last fiscal year (FY 2023-23) which stood at ₹2,596.
- The increase in revenue is largely attributed to the incremental revenue generated from the company’s renewable portfolio and robust thermal performance in a dynamic merchant market.
- JSW Energy registered its highest-ever quarterly EBITDA in Q2. This stood at ₹2,008 crore, higher by 83% YoY, due to a healthy EBITDA contribution from the acquisition of renewable assets, a truing up effect of the hydro business, and short-term thermal sales.
- Registered finance costs reported for Q2 FY2023-24 rose to ₹514 crore compared to ₹486 crore in Q1 of the same fiscal year. The increase in finance costs on a QoQ basis was largely due to high loan withdrawals in view of the ongoing growth capex and some charges on the completion of resizing activity and debt refinancing at the acquisition of the RE portfolio.
- The Profit After Tax (PAT) stood at ₹850 crore for Q2 FY23-24 compared to ₹466 crore in Q2 FY22-23. This is a significant QoQ increase with higher profitability driven by a strong contribution from merchant sales, a strong Acquired RE Portfolio, and the impact of hydro truing. The cash PAT generated in Q2 was at ₹1,180 crore, indicative of 20% cash returns on the adjusted net worth.
- As of the end of Q2, the Consolidated Net Worth and Net Debt were ₹19,877 crore and ₹24,260 crore, respectively. This has resulted in a Net debt-to-equity ratio of 1.2x. It has also given rise to an EBITDA of 4.6x. Receivables saw an improvement of 10% on a YoY basis with DSO being 56 days.
- In the second quarter of this fiscal year, the company’s liquidity continued its strong trajectory with Cash balances at ₹3,291 crore at the end of Q2. JSW Energy boasts one of the healthiest balance sheets in the sector and this gives the company some headroom for the pursuit of valuable growth opportunities.
Additional Read: JSW Energy Share Price
Q2 – Other Company Details Making JSW Energy Shine
Apart from a positive financial outlook arising from Q2, here are some other positive aspects of the company’s success and optimism for the future:
- The company continues its focus on being actively sustainable with results like nil liquid discharge and 100% ash waste utilisation. The goals of the company with respect to sustainability are aligned with national and international frameworks like those of the OECD, UN Global Compact, and National Guidelines on Responsible Business Conduct.
- With a continued effort towards the safety of its workforce and workplaces, JSW Energy has reported nil injuries in Q2. Additionally, the quarter has seen 84% of the workforce covered by the JSW Cares Audit.
- The company has been at the receiving end of quite a few awards and recognitions, including the National Award for Excellence in Energy Management (2023), first place in the TOPS Convention by the Indian Society for Quality, Bengaluru Chapter (July 2023), and the SEEM National Award for Energy Efficiency in the Platinum Category (September 2023).
- In terms of its net generation, the Ratnagiri plant of JSW Energy has proved its mettle by being one of the highest producers for Q2.
- In Q2, JSW Energy has continued to witness marked progress in its ongoing projects in terms of setting up electro-mechanical works, and other construction work.
- Other notable achievements of JSW Energy include the acquisition of Ind-Barath Energy Limited (Utkal), the progressive initiation of commencement of the SECI-X Wind Project, the signing of 960 MW MOU of Hydro Pump Storage with the Government of Maharashtra, the acquisition of 1.75 GW of Mytrah Energy’s renewable portfolio, and the empowerment of the people of Bhadresh in Rajasthan where its plants are located.
Financial Results
The table below shows the consolidated financials for Q2:
| Metrics ₹ Crore | Q2 FY23-24 | Q2 FY22-23 |
| Total Revenue | 3,387 | 2,596 |
| EBITDA | 2,008 | 1,098 |
| EBITDA Margin % | 59% | 42% |
| Depreciation | 409 | 294 |
| Finance Cost | 514 | 204 |
| Profit Before Tax | 1,086 | 600 |
| Profit After Tax | 850 | 466 |
| Cash Profit After Tax | 1,180 | 681 |
| Diluted EPS (₹) | 5.17 | 2.84 |
Additional Read: JSW Steel Q2 Results
About JSW Energy
Part of the conglomerate, the JSW Group, JSW Energy Limited is amongst India’s top private sector power generation companies that believe in the efficient utilisation of every available resource. From managing company operations, enhancing economic and social benefits to minimising environmental effects, and executing cutting-edge innovation, JSW Energy has built itself strongly and steadily over the years. In the present day, the company’s presence extends to many Indian states. It also includes stakes of the company in natural resource enterprises in South Africa. As one of India’s top-of-the-line power companies, JSW Energy is a blend of the best practices, whether it is leading operations, structured planning, or economic, social, and environmental benefits.
Currently, the company is responsible for the generation of 6,677 MW, out of which 3,158 MW constitutes thermal power, 1,391 MW comprises hydropower, 1,461 MW is wind energy, and 667 MW is solar power. The diversity in the company’s geographic locations, power off-take arrangements, and fuel sources help JSW Energy de-risk its business.
Source: https://www.jsw.in/investors/energy/jsw-energy-fy-2023-24-financials-results
