JSW Energy is set to announce its fourth quarter (January-March) earnings on Friday. Analysts on an average expect the company to report consolidated profit after tax to rise 38.1 percent year-on-year to Rs 311 crore, but on quarter-on-quarter basis, it is expected to be flat.
Total income is seen going up by 9.1 percent Y-o-Y to Rs 2,270 crore in March quarter, but on Q-o-Q basis its total income is likely to fall 4 percent.
Revenue growth will be driven by commissioning of their 540MW Barmer plant during the quarter at higher tariffs and plants at Vijaynagar & Ratnagiri operating at high plant load factors (PLFs). Also Read - Govt to pool coal supplies, pass on higher cost of imports
Analysts expect overall generation to be higher by around 20 percent.
Merchant tariffs in south have remained firm. Hence, South India (peak deficit of 14-16 percent) focused generating companies like JSW Energy is expected to post better realizations at Rs 4.5/Kwh – leading to better profits.
Earnings before interest, tax, depreciation and amortisation (EBITDA) are expected to jump 35 percent Y-o-Y (down 5.3 percent sequentially) to Rs 792 crore and EBITDA margin is seen improving 670 basis points Y-o-Y (fall 50 basis points Q-o-Q) to 34.9 percent in fourth quarter.
Analysts expect margin growth on the back of - higher blending of low-quality GCV coal likely to result in lower coal costs and moderate coal costs will help in operational strength as the company's plant is completely dependant on imported coal.
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