JSW Energy’s Net Profit in Q1 Slides 48% YoY on Thermal Segment Headwinds

The company's EBITDA grew 18% YoY, driven by the increase in renewable energy generation


JSW Energy, an independent power producer, reported a net profit of ₹2.9 billion (~$35.3 million), a decrease of 48% year-over-year (YoY) in the first quarter (Q1) of the financial year (FY) 2023-24, due to the lower realization in the thermal segment following a decline in coal prices.

The company’s total revenue declined by 3% YoY or ₹30.13 billion ($367 million).

The earnings before interest, taxes, and depreciation (EBITDA) showed a notable 18% YoY increase, reaching ₹13.07 billion ($159.2 million) in the quarter, primarily driven by contributions from renewable energy assets.

In terms of operational performance, power generation showed a 14% year-on-year increase, reaching 6.7 billion units (BU), driven by new renewable energy capacities (including Mytrah) and higher generation at Ratnagiri, partially offset by lower generation at hydropower assets.

The net renewable generation experienced a substantial 35% YoY growth, amounting to 2.3 BU, due to the addition of renewable energy capacities.

A net long-term generation saw an 18% year-on-year rise on the back of increased electricity generation at Ratnagiri (Unit-1) and the addition of renewable energy capacities.

In March 2023, JSW Neo Energy, a wholly owned subsidiary of JSW Energy, announced it would acquire Mytrah Energy’s 12 special-purpose vehicles.

JSW Energy possesses renewable assets with a total capacity of 5,912 MW. Among these assets, 3,509 MW are currently operational, while an additional 2,403 MW are under construction and yet to be commissioned.

The company’s revenue for Q4 of FY23 increased by 6% YoY to ₹28.06 billion (~$339.13 million) on the back of the increase in renewable capacity.

JSW Neo Energy was among the winners in the Power Company of Karnataka’s auction to supply 1 GW of energy for 8 hours daily from pumped hydro storage projects providing continuous 5-hour discharge. It won 300 MW by quoting ₹14.75 million (~$178,661).