JSW Energy rises over 6% after Q2 results

Shares of power-producing company JSW Energy rallied 6.5% to Rs 338 in Monday’s intraday trade after the company posted a 37% rise in consolidated net profit for the July-September quarter of the financial year 2022-23 on the back of higher revenues.

The net profit of JSW Energy stood at Rs 466 crore against Rs 399 crore in the corresponding period of the previous year. During the quarter, total revenue increased by 16% year-on-year (YoY) to Rs 2,596 crore from Rs 2,237 crore in the year-ago period.

Operating profit or EBITDA for the quarter was higher by 2% YoY at Rs 1,098 crore against Rs 1,080 crore in the corresponding period of the previous year. The increase is primarily attributable to the contribution from the 225MW solar capacity addition at Vijayanagar and 45MW uprating at Karcham Wangtoo, partially offset by lower short-term sales YoY.

Finance cost during the quarter increased by 7% YoY to Rs 204 crore because of additional borrowings due to ongoing growth capex. The weighted average cost of debt increased by 7 bps quarter-on-quarter (QoQ) to 7.94%.

Long-term sales stood at 6,481 million units, lower by 1% YoY as lower thermal generation was partly offset by higher generation at solar operations at Vijayanagar. Short-term sales during the quarter came at 194 million units against 236 million units in Q2 FY22 due to weak merchant market demand.

At 9.51 am, the scrip was trading 6% higher at Rs 337 over its last day’s closing price of Rs 318 apiece. The stock has risen nearly 10% in the last six months, while it has surged about 13% year to date.