JSW Energy on Friday posted its fiscal first quarter profit at Rs 289.88 crore, down 48.3 per cent in comparison to Rs 560.43 crore during the same quarter last year. It posted revenue from operations at Rs 2,927.85 crore, declining by 3.3 per cent from Rs 560.43 crore during Q1FY23. The revenue dropped, it said, as incremental revenue from the recently acquired assets of Mytrah Energy renewable capacity additions was offset by lower realization in thermal assets on account of decline in coal prices.
Meanwhile, EBITDA increased by 18 per cent on-year to Rs 1,307 crore, driven by robust EBITDA contribution from the renewable assets. The EBITDA margin was 43 per cent as against 36 per cent a year ago. While the revenue from its thermal segment was reported at Rs 2,083.18 crore, its renewables segment posted a revenue of Rs 780 crore during the quarter.
The company stated that the reported finance costs during the quarter increased to Rs 486 crore as against Rs 193 crore in Q1FY23. After adjusting for Rs 41 crore of one-time prepayment charges, underlying finance cost stood at Rs 445 crore as against Rs 193 crore in Q1FY23. “The additional finance cost is driven by interest cost for Mytrah amounting to Rs 170 crore and ongoing growth capex,” it said.
Higher profitability from Mytrah and RE assets were more than offset by the drag from lower short term sales, lower hydrology, lower profits at international coal assets and one-off charges due to debt refinancing at Mytrah. Cash PAT from operational assets during the quarter was at Rs 792 crore. The consolidated net worth and net debt for the quarter ended June 2023 was at Rs 19,111 crore and Rs 22,904 crore respectively, resulting in a net debt to equity ratio of 1.2x. “The Company has one of the strongest balance sheets among its peers which gives the headroom to pursue value accretive growth opportunities,” it said.
Business environment
JSW Energy, in a statement, said that over the medium term, the power sector outlook is healthy as rapid urbanization and stabilization of various government schemes are expected to boost overall power demand. India’s power demand increased by 1 per cent YoY to 409 BUs in Q1FY24, as unseasonal rains in northern India in April / May affected the power consumption in the country, it said. The peak demand touched an all time high of 223.2 GW in the month of June 2023, which led to an increase in overall power generation 1 per cent YoY to 436 BUs in the first quarter and renewable power generation increased 6 per cent YoY driven by solar generation which was up 26 per cent YoY while the wind and hydro generation was down 12 per cent and 11 per cent YoY respectively and thermal generation increased 2 per cent YoY, the company said.