JSW Energy (533148) Q4 16/17 earnings summary

Executive summary

• FY17 consolidated performance weakened as low power demand, lower merchant tariffs and rising imported coal prices pressured generation and realizations; long-term PPA subsidiaries supported results.

• Operational focus remained on cost control, efficiency, fuel diversification and fiscal discipline, with long-term generation capacity target of 10,000 MW.

Financial highlights

• Consolidated revenue from operations was ₹8,263.43 crore, down 16% YoY; total income was ₹8,480.43 crore versus ₹10,059.60 crore.

• Consolidated EBITDA before exceptional items fell 17% to ₹3,541.36 crore; profit attributable to owners declined 57% to ₹629.03 crore.

• Net generation was 21,631 MU versus 22,064 MU; consolidated turnover was ₹8,480 crore.

• Standalone revenue was ₹4,369.52 crore versus ₹6,260.71 crore; EBITDA before exceptional items was ₹1,233.82 crore versus ₹2,560.68 crore, and profit was ₹194.75 crore versus ₹1,182.07 crore.

Outlook and guidance

• Priorities include domestic coal blending at Vijayanagar and Ratnagiri, tighter O&M and financing costs, and securing open capacity through PPAs, group captives and DISCOM sales.

• Growth plans target 10,000 MW capacity, with organic projects and competitively valued acquisitions as the power sector consolidates.

• Long-term demand is expected to benefit from infrastructure, manufacturing, rural electrification and DISCOM reforms, while near-term demand and tariff recovery remain uncertain.