JSW Energy net profit up eight-fold to Rs 864 crore

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Sajjan Jindal-led JSW Energy’s consolidated operating profit or Ebitda (earnings before interest, taxes, depreciation, and amortisation) for the January-March quarter rose 79% year-on-year (y-o-y) to Rs 1,132 crore on one-time reversal of provisions towards a tariff true-up (adjustment) order for the Karcham Wangtoo hydro plant.

Adjusted for one-time reversal, the operating profit grew 36% on year to Rs 821 crore.

Revenue from operations during the March quarter rose 55.47% y-o-y to Rs 2,441 crore on the back of an increase in long-term sales of electricity. Long-term sales in the January-March quarter were up 19% on year to 4,137 million units.

Short-term sales, however, fell in Q4FY22 to 226 million units from 332 million units a year ago due to lower sales at the Ratnagiri and Vijayanagar plants. Other income rose to Rs 214 crore from Rs 44 crore a year ago.

Net profit for Q4FY22 rose eight-fold to Rs 864.35 crore on account of reversal of true-up provision. After the adjustment of one-time reversal, net profit stood at `372 crore, the company said.

Fuel cost for the quarter rose to Rs 994 crore from Rs 701 crore on higher cost of imported coal. JSW Energy imports around 90% of its coal requirement from Indonesia and South Africa as two of its plants in Ratnagiri and Vijayanagar are dependent on imported coal.

Finance cost for the March quarter was down by 61% y-o-y to Rs 100 crore. After adjusting for write-back of interest provisions on regulatory liabilities after the Karcham Wangtoo true-up order, the underlying finance cost decreased by 7% on year to Rs 170 crore from Rs 183 crore, the company said.

Operating margins, too, rose 605 basis points to 46.36% on better realisation on electricity sold.

Although, the company did not disclose the actual realisation on per unit basis, total generation in Q4FY22 rose 15% y-o-y to 4,363 million units compared with 3,796 million units a year ago.

The Vijayanagar plant in Karnataka generated 932 million units against 680 million units a year ago at a plant load factor (PLF) of 54% against 40% a year ago due to higher long-term sales. The Ratnagiri plant in Maharashtra produced 1,355 million units against 1,172 million units a year ago at a PLF of 57% compared to 50% a year ago due to higher power purchase agreements during the quarter. The lignite coal base plant at Barmer produced 1,608 million units against 1,526 million units a year ago on higher offtake. The PLF for Barmer plant stood at 76% compared to 72% a year ago.

As of March 31, JSW Energy’s net debt to equity stood at 0.40 times as against 0.76 times a year ago.