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The company is emerging as a dominant play in the power sector, with a strong balance sheet and the most efficient operational assets in the renewable and thermal power space
Diversified generation portfolio and expanding renewable capacity augur well for the company
The company is energised by operational efficiency, buoyancy in power demand and prices, and addition of new capacities.
Net Sales are expected to increase by 15.4 percent Y-o-Y (down 8.5 percent Q-o-Q) to Rs. 2,184.7 crore, according to HDFC Securities.
For the quarter, growth in hydropower generation stood at 14 percent while that in thermal and renewable energy stood at 2.5 percent and 8.5 percent, respectively, on an annualised basis.
The merchant-power segment power’s the company’s performance but valuation looks stretched
Keeping aside valuation risk, earnings visibility and strong balance sheet should support the stock in the long term
Valuations of JSW Energy have spiked making it an unattractive bet now
Net Sales are expected to decrease by 8.2 percent Y-o-Y (down 7.5 percent Q-o-Q) to Rs. 2,231.7 crore, according to Emkay.
Net Sales are expected to increase by 5.2 percent Y-o-Y (up 6 percent Q-o-Q) to Rs. 2,557.1 crore, according to Kotak.
Net Sales are expected to decrease by 1.9 percent Y-o-Y (up 20.3 percent Q-o-Q) to Rs. 2,314.7 crore, according to Kotak.
The stock is currently trading at 14 times its FY19 estimated earnings, which is quite reasonable in the light of cash on its books, moderate financial leverage and strong expected earnings growth.
Net Sales are expected to decrease by 4.7 percent Y-o-Y (up 19.8 percent Q-o-Q) to Rs. 2,125.8 crore, according to Kotak.
CNBC-TV18 caught up with Naushad Akhter Ansari, CEO-Steel Business of JSPL. He said that their EBITDA per tonne was flat on a sequential basis but more importantly said that deal with JSW Energy is definitely on.
In an interview to CNBC-TV18, Prashant Jain of JSW Energy spoke about the results and his outlook for the company.
Net Sales are expected to increase by 2.6 percent Y-o-Y (down 5.8 percent Q-o-Q) to Rs. 2101.1 crore, according to Edelweiss.
In an interview to CNBC-TV18, Sanjay Sagar, Joint MD & CEO of JSW Energy spoke about the results and his outlook for the company.
JSW Group company JSW Energy is expected to report weak set of earnings on lower sales volume. Profit is seen falling 70 percent year-on-year to Rs 97 crore and revenue may fall 24 percent to Rs 2,009 crore.
Net Sales are expected to increase by 0.3 percent Q-o-Q (down 22.5 percent Y-o-Y) to Rs 2053.1 crore, according to Motilal Oswal.
Speaking to CNBC-TV18, Sanjay Sagar, Joint MD & CEO of JSW Energy, said realisations have gone down and they look subdued.
Analysts expect better performance from its hydro plants like Wangtoo and Baspa in Himachal Pradesh. Year-on-year numbers are not comparable due to acquisitions.
Sales are expected to decrease by 3.1 percent Q-o-Q (up 23.3 percent Y-o-Y) to Rs 2598.7 crore, according to ICICI Securities.
The company is also looking to sell non-core assets worth nearly Rs 3,000 crore to deleverage its balance sheet, says Ravi Uppal, MD & CEO of Jindal Steel and Power (JSPL).
Rakesh Arora of Macquarie says the terms of the deal with JSW Energy to sell JSPL's thermal power plant at Chhattisgarh seems fairly satisfactory and beneficial to both companies.
Analysts say earnings could be negatively impacted by softness in merchant power demand (40-45 percent of company's offtake is merchant power). Merchant rates were low in December quarter due to low demand and hence, realisations can drop 5 percent Y-o-Y.