JSW Energy (533148) Q4 18/19 earnings summary

Executive summary

• FY2019 consolidated revenue rose 11.65% to ₹9,505.56 crore; EBITDA was ₹3,221.09 crore and profit attributable to owners reached ₹695.13 crore, versus ₹77.97 crore in FY2018.

• De-risking advanced: long-term PPA coverage reached 80.4% from 75.0%, while net debt-to-equity fell to 0.85x from 1.02x.

• Strategy targets 10,000 MW of generation capacity, at least 25% renewable capacity, and more than 85% long-term PPAs over the long term.

Financial highlights

• Consolidated revenue from operations increased 14% to ₹9,137.59 crore; total income rose to ₹9,505.56 crore from ₹8,513.98 crore.

• EBITDA before exceptional items was ₹3,221.09 crore, down 0.20% YoY; higher international coal prices and lower other income offset operating growth.

• Profit attributable to owners was ₹695.13 crore versus ₹77.97 crore; FY2018 included a ₹417.94 crore exceptional loss allowance on a loan, partly offset by a contingent-liability reversal.

• Net generation grew 1.25% to 22,088 MUs; consolidated net worth rose 6.41% to ₹11,822.24 crore.

Outlook and guidance

• CEA forecast FY2020 power-demand growth of 6.2%; moderated capacity additions and retirement of old thermal plants were expected to improve thermal PLFs and support new PPAs.

• Long-term ambition: reach 10,000 MW capacity and at least 25% renewable capacity; expand solar and wind selectively as bidding intensity and returns fit risk-return criteria.

• Growth plans include calibrated acquisitions of competitively priced stressed assets, steadily increasing long-term PPA coverage, and evaluating revival of the 240 MW Kutehr hydro project.