JSW Energy Q3 profit falls 41.79% to Rs 186.74 crore | The Financial Express

JSW Energy Q3 profit falls 41.79% to Rs 186.74 crore

During the quarter under review, the company’s consolidated total income rose 18.41% to Rs 2,349.73 crore from Rs 1,984.34 crore recorded in the comparable year-ago period.

JSW Energy, Sajjan Jindal-
A consensus estimate of Bloomberg analysts was expecting the firm to post a consolidated net profit of Rs 300.20 crore (4 brokers) on revenues of Rs 2,049.20 (4 brokers). (IE)

Industrialist Sajjan Jindal-led JSW Energy has posted a 41.79% fall in consolidated net profit at Rs 186.74 crore for the third quarter ended December 31, impacted mainly by lower merchant sales. In comparison, the company had posted a net profit of Rs 320.82 crore for the same period of the previous financial year.

During the quarter under review, the company’s consolidated total income rose 18.41% to Rs 2,349.73 crore from Rs 1,984.34 crore recorded in the comparable year-ago period. The rise in total revenue was due to higher realisation (as higher fuel costs are passthrough in nature for long-term power purchase agreements), the company said in a statement.

A consensus estimate of Bloomberg analysts was expecting the firm to post a consolidated net profit of Rs 300.20 crore (4 brokers) on revenues of Rs 2,049.20 (4 brokers).

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JSW Energy’s consolidated Ebitda for the reporting quarter fell 18% on a year-on-year basis to Rs 727 crore due to lower short-term sales, while that for nine months of the fiscal was up 5% at Rs 2,936 crore. The Q3 Ebitda was lower mainly due to lower short-term sales on a year-on-year basis, partly offset by contribution from Vijayanagar Solar and higher other income in the quarter, it added.

The company’s financial costs during the quarter rose by 9% to Rs 214 crore due to additional borrowings (for ongoing growth capex) and increase in weighted average cost of debt to 8.29% with the rising rates cycle.

The company’s net generation from various plants fell to 4,274 million units in Q3, compared with 4,496 million units.

Long term sales during the quarter were flat at 4.2 billion units on a year-on-year basis, as incremental generation from Vijayanagar Solar (225 MW) and SECI X (27 MW) was offset by lower hydro generation (due to weaker hydrology year-on-year). The short-term sales during the quarter stood at 95 million units versus 323 million units in Q3 FY22 due to lower merchant market sales.

The overall net generation stood at 4.3 billion units lower by 5% due to lower merchant market sales in the quarter, it added.

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The company is pursuing a growth strategy to expand its installed capacity to 10 GW by FY25 and 20 GW by FY30, along with foraying into energy products and services. With current locked-in capacity of 9.9 GW, JSW Energy is expected to achieve its FY25 capacity target well ahead of the timelines.

Currently, 2.2 GW of greenfield renewable energy capacity is under construction in full swing, it said.

Its acquisition of Mytrah RE 1,753 MW assets is expected to close in Q4, and the 700 MW buy of Ind-Barath through bankruptcy process has been completed.

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First published on: 21-01-2023 at 03:15 IST