JSW Energy (533148) Q4 15/16 earnings summary

Executive summary

• FY 2015-16 consolidated revenue rose 6.3% to ₹9,968.94 crore, EBITDA rose 13.0% to ₹4,354.63 crore, and PAT rose 3.4% to ₹1,395.51 crore.

• Net generation reached a record 22.06 BU, up from 20.31 BU, supported by the September 2015 acquisition of 1,391 MW of hydro capacity.

• Strategy centers on efficiency, diversified fuels and offtake, selective acquisitions, and a stronger long-term PPA base to improve cash-flow stability.

Financial highlights

• Consolidated revenue from operations was ₹9,968.94 crore versus ₹9,380.16 crore; EBITDA before exceptional items was ₹4,354.63 crore versus ₹3,853.52 crore.

• Consolidated PAT was ₹1,395.51 crore versus ₹1,349.51 crore; EPS was ₹8.51 versus ₹8.23.

• Standalone revenue from operations fell 5.9% to ₹5,959.42 crore; EBITDA before exceptional items rose 2.5% to ₹2,457.04 crore, while PAT fell 2.9% to ₹965.85 crore.

• Consolidated fuel cost declined to ₹4,329.93 crore from ₹4,681.13 crore; lower international coal prices were partly offset by rupee depreciation and lower average tariffs.

Outlook and guidance

• Targeting 10,000 MW generation capacity by 2020; strategic aim is to contract 85%-90% of capacity under medium- or long-term PPAs.

• Near-term cash flows are expected to prioritize value-accretive acquisitions amid sector consolidation, while balancing growth with shareholder returns.

• A 240 MW Kutehr run-of-river hydro project is under development; estimated project cost is ₹2,900 crore, with financial closure expected in FY 2016-17.