JSW Energy Q3 Results Review - Decline In Merchant Sales, Higher Fuel Cost Impact Profit: ICICI Securities

ICICI Securities Report

JSW Energy Ltd. reported consolidated revenue / Ebitda /profit after tax of Rs 22.5 billion / Rs 6.5 billion / Rs 1.8 billion (up 18.7% / down 21.0% / down 44.6% YoY) respectively, for Q3 FY23. However, adjusting for the Rs 1 billion (pre-tax) prior period sales during Q3 FY22, profit after tax was lower by 27.8% YoY.

The main factors impacting performance during the quarter were:

1. 71% YoY decline in merchant sales volumes to 95 million units (from 323 million units in Q3 FY22);

2. operationalisation of 225 mega watt solar plant and commissioning of first phase of 27 mega watt of the SECI X project, resulting in 95 million units of renewable energy generation (versus 3 million units in Q3 FY22);

3. higher fuel cost (Rs 3.2/unit, up 73% YoY);

4. higher interest expense due to capex and increase in interest rates.

Acquisition of 700 mega watt Ind-Barath Utkal thermal power plant is complete (JSW Energy holds 95%) and the project is likely to be operationalised in the next 24 months. Mytrah acquisition is likely to be delayed and is now expected to be complete by Q1 FY24. Letter of awards for the 500 mega watt BESS project from SECI is a positive.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.