JSW Energy Q4 net profit rises 22% to Rs 345.3 crore driven by strong operations, merchant sales

JSW Energy  saw its consolidated net profit jump by 22.4 percent year-on-year to Rs 345.27 crore in the March quarter, driven by strong performances from its thermal energy portfolio and surge in the short term market.

The revenue from operations of the Sajjan Jindal-led JSW Group’s power utility  rose to Rs 2,755.87 crore in Q4 FY24 from Rs 2,669.97 crore a year earlier.

“Total generation under the long term PPA (power purchase agreement) in Q4 FY24 increased by 21% YoY driven by higher generation at Ratnagiri and renewable energy capacity additions. Short Term sales surged during the quarter with strong underlying power demand growth in the country,” the company said in a statement.

For the fourth quarter, earnings before interest, tax, depreciation, and amortisation (EBITDA) increased 47 percent to Rs 1,292 crore. The EBITDA margin was 45% percent compared to 31% percent during the same quarter last year.

Separately, the board recommended a dividend of Rs 2.0 per share subject to approval of the shareholders, the company said.

Betting on Higher Demand

The company said it expects the power sector outlook to remain healthy over the medium term, aided by rapid urbanization, government led capex and a strong investment cycle.

JSW Energy is looking at backward integration by getting into manufacturing for wind and solar power equipment to de-risk its growth plans from supply chain disruptions, the top bosses told Moneycontrol last month.

It is also working on plans for battery storage manufacturing to fuel the group’s entry into the electric vehicle segment, they added.

For the full year ended March, the company's net generation rose 27% YoY, driven by higher RE (renewable energy)  and thermal generation, partly offset by lower hydro generation.

In April, the power utility firm, led by industrialist Sajjan Jindal, hit the capital market with a Rs 5,000 crore qualified institutional placement of shares, in its first equity issue since its initial public offer in 2010. Executives said the company would use the proceeds primarily for green energy capacity.

FY24 performance

For FY24 total revenue increased 10 percent  YoY to Rs 11,941 crore from Rs 10,867 crore in FY23. EBITDA for the year grew by 53 per cent YoY to Rs 5,837 crore, its highest till date, the company said.

The company’s net generation was up 27 per cent YoY, driven by higher renewable energy and  and thermal generation, partly offset by a 12 per cent in hydropower generation, the company said.  The profit after tax increased by 17 percent YoY to Rs 1,723 crore for FY24.

The company’s consolidated net worth and net debt as on Mar 31, 2024 were Rs 20,832 crore and Rs 26,636 crore respectively. This translates into a net debt-to-equity ratio of 1.3.

The company said that its receivables in terms of day sales outstanding, excluding the acquired renewable energy capacity, stood at 54 days, the company said.

The company’s cash balances stood at Rs 4,691 crores as of Mar 31, 2024. “The company has one of the strongest balance sheets in the sector which gives it the headroom to pursue value accretive growth opportunities,” it said in the statement.