JSW Energy Q1 net profit down 48%, revenue declines 3% to Rs 2,927 cr

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JSW Energy’s promoter Sajjan-Jindal on Friday reported a 48 percent drop in its consolidated net profit, due to weaker hydro, short sales, and coal segments, along with charges related to debt refinancing.

JSW Energy reported a net profit of Rs.289.88 crore, down 48 per cent year-on-year on the consolidated level in the June quarter. The company attributed the decline to lower short-term sales, hydrology, earnings in international coal assets, and one-time fees due to debt refinancing in Mytrah, one of its new renewable energy assets.

JSW Energy said short-term sales were lower in the quarter under review due to the unfavorable underlying impact of the past fiscal year. JSW Energy said that 50 percent of total short-term trading volumes for fiscal ’23 were reported in the first quarter of the year.

The power producer’s revenue from operations was Rs. 2,927.85 crore. “During the quarter, total revenue decreased 3 percent (yoy) as increased revenue from Mytrah and renewables additions was offset by lower realization of thermal assets due to lower coal prices (which are inherently passable), the company said in a statement.

The company said total power generation in the quarter rose 14 percent, driven by new renewable energy capacity. Earnings before interest, tax, depreciation and amortization (Ebitda) was Rs.1,307 crore, up 18 percent year-on-year.

Net debt stood at Rs. 22,904 crore at the end of June 2023.

India’s energy demand from April to June 2023 increased by one percent to 409 billion units, the company said, as unseasonal rains in the north in April and May affected energy consumption in the country. JSW Energy was guided for a healthy outlook for the energy sector in the medium term as rapid urbanization and stabilization of various government schemes are expected to boost the overall energy demand.

In Friday’s trading, JSW Energy shares closed at 304.55 rupees per share on the Bahrain Stock Exchange, up 1.84 percent, before the results announcement, which came after trading hours.