Q4 Results: JSW Energy Posts Rs 3.9-Crore Profit In March Quarter

JSW Energy Ltd. reported a profit in the March quarter against a loss in the year-ago period.

Net profit stood at Rs 3.9 crore compared with a net loss of Rs 483.1 crore a year ago. That compares with the Rs 40-crore consensus estimate of analysts tracked by Bloomberg. The company had reported an exceptional net loss of Rs 418 crore in its base quarter.

Its revenue rose 8.4 percent year-on-year to 1,924.6 crore in the January-March period—in line with the Rs 2,010 crore estimate. The company’s finance costs declined 14.5 percent over the last year to Rs 276 crore as it repaid debt, the filing said. The company’s net debt stood at Rs 10,050 crore, taking its net debt-equity ratio to 0.85.

The company, however, won’t do any refinancing in the ongoing financial year, Joint Managing Director and Chief Executive Officer Prashant Jain told BloombergQuint. “It is not a good situation to continuously deleverage the balance sheet. We would like to grow our balance sheet and have been waiting for the right opportunity. The right time has now arrived.”

The consolidated net worth of the company stood at Rs 11,822 crore as of March 31.

Power Generation

The company’s net (power) generation fell 3 percent during the quarter because of lower merchant sales, Jain said. Its merchant power prices moderated, averaging at Rs 3.18 a unit in the three months ended March. That’s 9 percent lower year-on-year and 26 percent sequentially.

Electric Vehicle

In March, the company called off its plan to invest in electric vehicles, citing uncertainties in the industry. Jain said Rs 32 crore was spent in two years in the electric vehicle business. Of this, Rs 22 crore was spent in the financial year ended March 2019 alone.

Other Highlights

(Year-On-Year)

• Ebitda rose 13.1 percent to Rs 476.9 crore.
• Margin expanded 110 basis points to 24.8 percent.
• Recommended dividend of Rs 1 per equity share with a face value Rs 10. It will be paid on or before Sept. 11.
• Net installed capacity stood at 356.1 gigawatt as on March 31.
• Consolidated deemed plant load factor stood at 54 percent against 51.9 percent.
• Power demand expected to grow at 5-6 percent for the financial year ending March 2020.

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