JSW Energy (533148) Q4 17/18 earnings summary

Executive summary

• FY2017-18 consolidated generation held at 21.816 billion units; longer-term PPAs rose to 75% of the offtake mix, while deleveraging strengthened the balance sheet.

• Consolidated EBITDA and attributable profit declined amid lower generation at some plants, higher imported coal costs and exceptional provisions; growth plans expanded into renewables and electric mobility.

Financial highlights

• Consolidated revenue from operations was ₹8,048.96 crore, down 2.6% YoY; total income was ₹8,513.98 crore, up 0.4% YoY.

• EBITDA before exceptional items fell 8.86% to ₹3,227.56 crore; consolidated profit attributable to owners fell 87.6% to ₹77.97 crore.

• Exceptional items totaled ₹417.94 crore; they included a ₹574.19 crore loan loss allowance and a ₹156.25 crore reversal of contingent consideration no longer payable.

• Total comprehensive income was ₹775.09 crore, including ₹697.12 crore of other comprehensive income, chiefly reflecting fair-value changes in equity instruments.

Outlook and guidance

• Power demand is expected to grow steadily over the next 3–5 years, supported by infrastructure, UDAY, Power for All and Saubhagya; limited capacity additions could lift sector PLFs.

• Plans call for raising long-term PPA share over the next 18–24 months; selective, value-accretive acquisitions remain under consideration.

• FY2018-19 plans include solar generation projects across ground-mounted, rooftop and floating technologies; module manufacturing investment will follow risk-return assessment.

• EV, battery/storage and charging-infrastructure investment is to proceed in stages, linked to programme milestones and prudent capital allocation.