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Hot Pursuit News

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(29 Jan 2025, 12:15)

JSW Energy skids after net profit slumps 32% YoY to Rs 157 cr in Q3 FY25

JSW Energy tumbled 7.14% to Rs 468 after the company’s consolidated net profit declined 32.2% to Rs 157.45 crore in Q3 FY25 as compared with Rs 232.24 crore in Q3 FY24.


Total income fell marginally 0.8% to Rs 2,640.04 crore in Q3 FY25 as compared with Rs 2,661.41 crore in Q3 FY24.

Profit before tax (PBT) dropped 51.63% to Rs 150.04 crore in Q3 FY25 as compared with Rs 310.17 crore in Q3 FY24.

EBITDA stood at Rs 1,115 crore in Q3 FY25 was lower by 9% YoY, primarily due to lower short-term sales contribution, despite higher overall generation. EBITDA margin reduced to 42% during the quarter against 46% in Q3 FY24.

Finance cost in the quarter rose to Rs 565 crore from Rs 521 crore in Q3 FY25 as a result of capitalisation of projects, with the weighted average cost of debt standing at 8.87%.

In Q3 FY25, net generation stood at 6,751 MUs, a 10% YoY increase, driven by wind capacity additions, incremental contribution from Utkal Unit-1 (350 MW) and hydro plants. Sale of power generated under long-term PPAs rose by 7% YoY due to higher generation from RE portfolio.

India's power demand grew by 2.6% YoY to 393 BUs in Q3 FY25, due to lower cooling demand and high base.

Overall generation during the quarter grew by 3.6% YoY to 426 BUs. Renewable power generation increased by 15% YoY, driven by solar generation which was up 26% YoY during the quarter. Hydro generation during Q3 FY25 at 30 BUs grew by 29% YoY.

On the supply side, installed capacity stood at 462 GW as of 31st December 2024. In Q3 FY25, net installed capacity increased by 9.3 GW primarily due to renewable capacity additions.

As of 31st December 2024, the consolidated net worth and net debt were Rs 27,152 crore and Rs 26,448 crore respectively, resulting in a net debt to equity ratio of l.0x and Net Debt/EBITDA of 4.5x.

On the outlook front, the company expects that as increase in base load capacity (including round-the-clock storage) falls behind the growth in demand, the supply is expected to lag behind demand over the medium term, leading to tight demand-supply conditions.

Meanwhile, the company’s board approved raising long-term funds up to Rs 3,000 crore through the issuance of rated and listed non-convertible debentures on a private placement basis.

JSW Energy is primarily engaged in the business of generation of power, with principal places located at Vijayanagar (Karnataka), Ratnagiri (Maharashtra), Nandyal (Andhra Pradesh), and Salboni (West Bengal).

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