JSW Energy Q3 net dips 45% to Rs 180 cr, revenue surges 18% to Rs 2,350 cr

JSW Energy on Friday reported a 45 per cent decline in its consolidated net profit to Rs 180 crore for the December 2022 quarter.

"(consolidated) Profit After Tax (PAT or net profit) stood at Rs 180 crore (in the quarter ended on December 31, 2022), which is lower YoY (year-on-year) compared to a PAT of Rs 324 crore in the corresponding period of the previous year," a company statement said.

The company stated that during the quarter (October-December 2022), its total revenue increased by 18 per cent to Rs 2,350 crore from Rs 1,984 crore a year ago, due to higher realisation (as higher fuel costs are passed through in nature for LT PPAs (long term power purchase agreements).

The EBITDA for the quarter was 18 per cent lower at Rs 727 crore vis-a-vis Rs 882 crore in the corresponding period of the previous year.

It explained that the decrease is primarily due to lower short-term sales YoY, partly offset by the contribution from Vijayanagar Solar and higher other income in the quarter.

Finance costs during the quarter increased by 9 per cent to Rs 214 crore due to additional borrowings (for ongoing growth capex) and an increase in weighted average cost of debt to 8.29 per cent with the rising rates cycle.

The consolidated net worth and consolidated net debt as on December 31, 2022, were Rs 18,392 crore and Rs 9,840 crore, respectively, resulting in a Net Debt to Equity ratio of 0.54x.

The receivables days' declined to 69 days on December 31, 2022, from 75 days year-on-year.

Liquidity continues to be strong with cash balances at Rs 3,029 crore as of December 31, 2022. The company has one of the strongest balance sheets among its peers with a large headroom to pursue value accretive growth opportunities, it stated.

Its long-term sales during the quarter stands at 4,179 MUs (million units), flat YoY as incremental generation from Vijayanagar Solar (225 MW) and SECI X (27MW) was offset by lower Hydro generation (due to weaker hydrology YoY).

Short-term sales during the quarter came at 95 MUs versus 323 MUs in Q3 FY22 due to lower merchant market sales, it stated.