JSW Energy (533148) Q4 08/09 earnings summary

Executive summary

• FY09 revenue was Rs. 1,593.98 crore and standalone PAT Rs. 578.08 crore; lower profit largely reflected the prior year’s Rs. 327.56 crore CER sale gain and higher fuel and interest costs.

• Generation remained high at 2,229 million units with 97.88% PLF; power-generation revenue rose 33.28% YoY as realization and short-term sales improved.

• Consolidated PAT was Rs. 276.69 crore versus Rs. 625.27 crore in FY08, while major construction projects drove substantial capital investment and borrowings.

Financial highlights

• Standalone total revenue was Rs. 1,593.98 crore versus Rs. 1,604.71 crore; FY08 included Rs. 327.56 crore from CER sales.

• Standalone PBT was Rs. 667.18 crore versus Rs. 991.29 crore; PAT was Rs. 578.08 crore versus Rs. 855.97 crore.

• Power sales revenue increased to Rs. 1,233.67 crore from Rs. 925.65 crore; project management fees were Rs. 339.50 crore versus Rs. 303.69 crore.

• EBITDA was Rs. 847.09 crore versus Rs. 1,138.38 crore including prior-year CER income; excluding CER income, EBITDA increased 4.35% YoY.

• Consolidated revenue was Rs. 1,852.16 crore and PAT Rs. 276.69 crore, versus Rs. 1,326.07 crore and Rs. 625.27 crore, respectively, in FY08.

Outlook and guidance

• Ratnagiri’s 4×300 MW project expected its first unit in Q4 FY10, with subsequent units at three-month intervals; 600 MW of output was tied up for supply.

• Barmer’s 8×135 MW lignite project scheduled first-unit synchronization in Q1 FY10, followed by units at two-month intervals; interim coal use was approved pending mining land acquisition.

• The merged Vijayanagar 2×300 MW project expected first-unit COD in Q1 FY10 and second-unit COD in Q2 FY10.

• A 260 MW Kuther hydro award was under development; consultant hydrology indicated capacity could be about 240 MW, with the detailed project report awaited.

• Expansion plans included a further 2×135 MW at Barmer, subject to regulatory consents; the estimated project cost was Rs. 1,350 crore and debt sanction had been received.