JSW Energy Reports Robust Financial Growth in Q1 FY2024, Net Generation Increases 18 percent YoY

JSW Energy Ltd has announced a strong financial performance for the first quarter of the current financial year ending June 30, 2024. The company recorded an impressive 80 percent year-on-year (YoY) increase in Profit After Tax (PAT), amounting to INR 522 crore.

This significant growth in profitability was largely driven by higher generation from newly added renewable capacities and contributions from the Utkal thermal unit 1. Total revenue for the quarter rose by 1 percent YoY to INR 3,043 crore, compared to INR 3,013 crore in the corresponding period last year.

The company reported an EBITDA of INR 1,581 crore, marking a 21 percent YoY increase, primarily due to enhanced generation capacities. The financial metrics for the quarter included a net debt-to-equity ratio of 0.9x and a net debt-to-EBITDA ratio of 3.8x, which dropped to 2.2x when excluding capital work in progress (CWIP). Receivables improved to 65 days outstanding (DSO), while cash and cash equivalents stood at INR 6,118 crore.

Operationally, JSW Energy saw a net generation increase of 18 percent YoY to 7,881 million units (MU), up from 6,699 MU a year earlier. This growth was mainly fueled by higher hydro and thermal generation and organic wind capacity additions. Renewable energy generation saw a remarkable 44 percent YoY increase, driven by a 61 percent rise in hydro generation and a 4 percent increase in thermal generation. Additionally, long-term PPA generation rose by 16 percent YoY.

During the quarter, JSW Energy added 291 MW of capacity, including 45 MW of wind energy assets. The company also signed Power Purchase Agreements (PPAs) for 2,025 MW of renewable energy projects, comprising 1 GW each of solar and wind power. Furthermore, the firm secured 900 MW of renewable energy bids and received board approvals for 1.3 GW of group captive projects, increasing its total locked-in capacity to 15.5 GW.

JSW Energy also made significant progress in other products and services. The company commenced work on a 1 GWh SECI project, which is expected to be commissioned by June 2025, and secured a 320 MWh Battery Energy Storage System (BESS) project for group captive use. In the green hydrogen sector, JSW Energy started developing a 3,800 TPA project for JSW Steel, which is expected to be commissioned by the fourth quarter of the current financial year.

Overall, JSW Energy's consolidated operational performance showed substantial growth, with long-term sales increasing by 16 percent YoY and short-term sales volume growing by 32 percent YoY. The company's robust performance highlights its strategic focus on expanding renewable energy capacity and enhancing financial stability.