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JSW Energy

18-May-19 18:41 Hrs IST

JSW Energy, a part of JSW Group engaged in generation of power has registered 8% growth in consolidated sales to Rs 1924.58 crore for the quarter ended March 2019. But with 110 bps expansion in operating profit margin, the operating profit was higher by 13% to Rs 476.81 crore. The other income was down by 10% to Rs 93.58 crore thus leaving the PBIDT up by 9% to Rs 570.39 crore. However gained by 15% fall in interest cost, the PBDT was up by 46% to Rs 294.03 crore. After accounting for higher depreciation (up 21% to Rs 287.23 crore) the PBT before EO & Profit from associates was a profit of Rs 6.80 crore compared to a loss of Rs 35.75 crore in the corresponding previous period. The share of profit from associate was Rs 11.61 crore against a loss of Rs 24.48 crore in the corresponding previous period. Thus the PBT before EO was a profit of Rs 18.41 crore compared to a loss of Rs 60.23 crore in the corresponding previous period. The EO expense for the quarter was nil compared to Rs 417.94 crore (comprise loss allowance of Rs 417.94 crore toward loan to a party) in the corresponding previous period. Thus the PBT after EO was Rs 18.41 crore compared to a loss of Rs 478.17 crore in the corresponding previous period. After accounting for higher taxation (up 571% to Rs 12.62 crore) the PAT was Rs 5.79 crore against a loss of Rs 480.05 crore in the corresponding previous period. After accounting for lower minority interest (down 36% to Rs 1.92 crore) and higher other comprehensive expenses (a swing of Rs 219.32 crore to Rs 88.99 crore) the total comprehensive income attributable to owners was a loss of Rs 85.12 crore compared to a loss of Rs 352.74 crore in the corresponding previous period.

Sales up 8% to Rs 2421.69 crore largely due to better realization from LT PPA customers. This comes despite lower short term sales volume of 567 million units compared to 848 million units in the corresponding previous quarter.

Expansion in operating profit margin to the extent of 110 bps was largely due to lower fuel cost and OE. Fuel cost as % to sales was lower by 70 bps to 61.9%. The Other Expense was down by 90 bps to 9.2%. But the power purchase cost was up by 40 bps to 1.0%. And the staff cost was down by 20 bps to 3.1%. Expansion in margin despite marginally lower merchant power sales (due to conversion to Long term PPA) was largely due to increased PLF at both Ratnagiri and Barmer plants.

Yearly performance

Consolidated sale for the period was up by 14% to Rs 9137.59 crore. But with OPM contract 310 bps to 31.2%, the growth at operating profit was restricted to 3% to Rs 2853.12 crore. With 21% fall in other income, the PBIDT was flat (up 0%) at Rs 3221.09 crore. Gained largely by lower interest cost (as % of OP) the PBT (before Associate share of profit) was up by 7% to Rs 865.00 crore even as depreciation (as % of OP) stand higher. Spurred largely by higher share of profit from associate (a swing of Rs 81.42 crore to Rs 31.93 crore) the PBT (after associate share of profit) was higher by 19% to Rs 896.93 crore. EO was nil compared to an expense of Rs 417.94 crore in the corresponding previous period. Thus on low base, the PBT after EO jumped up by 165% to Rs 896.93 crore. The taxation was lower by 16% to Rs 212.44 crore and thus the PAT was up by whopping 706% to Rs 684.49 crore.

After accounting for non controlling interest of Rs 10.64 crore a share of loss, compared to a share of profit of Rs 6.94 crore in corresponding previous period, the net profit was up by 792% to Rs 695.13 crore. The other comprehensive income was down by 98% to Rs 12.02 crore and thus the total comprehensive income was down by 9% to Rs 707.15 crore.

JSW Energy: Consolidated Financial Results

	1903 (3)	1803 (3)	Var. (%)	1803 (12)	1803 (12)	Var. (%)
Sales	1924.58	1775.08	8	9137.59	8048.96	14
OPM (%)	24.8	23.7		31.2	34.3
OP	476.81	421.50	13	2853.12	2762.54	3
Other Income	93.58	103.93	-10	367.97	465.02	-21
PBIDT	570.39	525.43	9	3221.09	3227.56	0
Interest	276.36	323.45	-15	1192.40	1455.91	-18
PBDT	294.03	201.98	46	2028.69	1771.65	15
Depreciation	287.23	237.73	21	1163.69	966.08	20
PBT before EO & P/L from associates	6.80	-35.75	LP	865.00	805.57	7
Share of Profit/( Loss) from Associates	11.61	-24.48	LP	31.93	-49.49	-165
PBT before EO	18.41	-60.23	LP	896.93	756.08	19
EO Income	0.00	-417.94	-100	0.00	-417.94	-100
PBT after EO	18.41	-478.17	LP	896.93	338.14	165
Taxation	12.62	1.88	571	212.44	253.23	-16
PAT	5.79	-480.05	LP	684.49	84.91	706
Minority Interest	1.92	3.02	-36	-10.64	6.94	PL
Net profit	3.87	-483.07	LP	695.13	77.97	792
OCI attributable to owners	-88.99	130.33	-168	12.02	697.12	-98
Total Comprehensive Income attributable to owners	-85.12	-352.74	-76	707.15	775.09	-9
EPS (Rs)*	#	#		4.2	1.1
* Annualised on Current equity of Rs 1640.10 crore. Face Value: Rs 10 Var. (%) exceeding 999 has been truncated to 999 # Engineering and Construction activity being substantially seasonal EPS for quarter/ half year was not calculated LP: Loss to Profit PL: Profit to Loss Figures in Rs crore Source: Capitaline Corporate Database