Renewable Energy Capacity Additions Drive JSW’s Q4 Revenue Up by 6%
The net power generation grew by 16% YoY to 5,067 million units
May 24, 2023
Independent power producer JSW Energy’s revenue for the fourth quarter (Q4) of the financial year (FY) of 2023 increased by 6% year-over-year (YoY) to ₹28.06 billion (~$339.13 million) on the back of the increase in renewable capacity.
The net generation grew by 16% YoY to 5,067 million units (MU) due to strong merchant volumes, incremental generation from the 225 MW Vijayanagar solar project, and Tranche X of Solar Energy Corporation of India’s 27 MW wind project in Tamil Nadu’s Tuticorin
The company’s profit after tax (PAT) for the period dropped 27% YoY to ₹2.72 billion (~$32.87 million)
JSW said the fall in PAT was primarily due to lower net generation at its Karcham and Baspa hydroelectric plants that dropped 8% YoY.
Higher renewable capacity addition and improved operational performance fueled the adjusted Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) for Q4 at ₹8.81 billion (~$107 million), up 7% YoY.
JSW Energy’s solar projects achieved an average capacity utilization factor of 29% during the quarter, up from 24% in the same period last year.
During Q4, JSW Energy’s subsidiary JSW Neo Energy announced the acquisition of Mytrah Energy’s 12 special purpose vehicles (SPV) for ₹18.2 million (~$221,024).
JSW recorded a 32% YoY increase in net renewable generation for the January-March quarter, aided by the commissioning of the 225 MW Vijayanagar solar project.
During the quarter, JSW Renew Energy Five, an SPV of JSW Energy, received a letter of award for a 500 MW standalone battery storage system from SECI.
JSW Energy’s adjusted PAT increased by 15% to ₹13.58 billion (~$164 million) for FY 2023, up from ₹11.8 billion (~$143 million) in the previous year due to higher net generation and renewable capacity addition.
The company’s net generation increased by 5% YoY to 21,866 MU in 2023 from 20,787 MU in the previous year.
While JSW has set a target of being a 10 GW generating company by FY 2025, it is already set to reach 9.8 GW by the calendar year 2024, well before its goal.
The company’s revenue saw a YoY growth of 24% at ₹108.67 billion (~$1.3 billion) for FY 2023 compared to ₹87.36 billion (~$1 billion), thanks to higher realization as higher fuel costs are pass-through for long-term power purchase agreements.
JSW Energy’s adjusted EBITDA increased by 8% to ₹38.17 billion (~$461 million) in 2023 from ₹35.42 billion (~$428 million) in the previous year.
The company has 6.6 GW of operational renewables capacity, and 3.2 GW of projects are under construction which are expected to be operational by 2024.
JSW Energy posted a 45% YoY drop in its profit at ₹1.8 billion (~$22.2 million) for the third quarter of 2023.