Motilal Oswal 's research report on JSW Energy
JSW Energy (JSWE)'s results reflected the impact of lower merchant sales volumes due to lower power demand and merchant prices. At a consolidated level, EBITDA was down 8% YoY to INR7.5b. Debt reduction continues, with net debt (incl. acceptances) declining ~INR1.6b during the quarter. Interest cost also decreased by 11% YoY. Furthermore, FCF generation would continue to be strong given ~80% of JSWE's capacity is under long-term PPAs. Maintain Buy, with TP of INR65/sh.
Furthermore, these tied-up PPAs contribute ~95% to the company's EBITDA. Maintain Buy, with TP of INR65/sh.
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