JSW Energy (533148) Q4 14/15 earnings summary

Executive summary

• FY2014-15 delivered record consolidated profitability, supported by higher generation, improved plant load factors and lower imported coal prices.

• Consolidated net profit rose 78.8% to ₹1,349.51 crore; return on equity reached 19% and net debt-equity improved to 1.01x.

Financial highlights

• Consolidated revenue from operations was ₹9,380.16 crore, up 7.75% YoY; EBITDA before exceptional items reached ₹3,853.52 crore, up 11.58%.

• Consolidated profit after tax was ₹1,349.51 crore versus ₹754.74 crore; basic and diluted EPS increased to ₹8.23 from ₹4.60.

• Consolidated operating cash flow rose to ₹3,392.85 crore from ₹2,269.12 crore; total revenue was ₹9,610.27 crore.

• Standalone PAT increased 65.08% to ₹994.55 crore; standalone EBITDA before exceptional items grew 5.68% to ₹2,396.38 crore.

Outlook and guidance

• Medium- to long-term power demand was expected to strengthen with a revival in investment and manufacturing; near-term demand remained exposed to weak industrial activity and global conditions.

• Capacity was expected to reach 4,531 MW, subject to completion of the 1,391 MW hydro acquisition; Jalipa mine operations were expected in FY2015-16.

• Strategy targeted long-term PPAs for over 85% of capacity; management also planned to pursue selective organic and inorganic opportunities while preserving financial prudence.