JSW Energy witnesses over two-fold jump in net profit to Rs 324 crore during December quarter

JSW Energy | Representative image

JSW Energy on Wednesday reported over a two-fold jump in its consolidated net profit to Rs 324 crore for the December 2021 quarter, mainly on the back of higher revenues. Its consolidated net profit had stood at Rs 124 crore in the year-ago quarter, according to a BSE filing.

The company's total revenue during October-December 2021 rose to Rs 1,984 crore, against Rs 1,659 crore in the year-ago period. According to a statement issued by the company, its profit after tax (PAT) stood at Rs 324 crore as compared with Rs 124 crore a year ago.

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Total revenue increased by 20 per cent year-on-year (y-o-y) to Rs 1,984 crore during the December 2021 quarter, from Rs 1,659 crore, primarily due to the increase in short-term sales and realisation, it stated. The company said underlying finance cost during the quarter decreased 10.5 per cent y-o-y to Rs 171 crore, compared with Rs 191 crore in the year-ago period.

However, it stated that there was an additional finance cost of Rs 25 crore pertaining to interest on regulatory liabilities during the quarter. The consolidated net worth and consolidated net debt as on December 31, 2021, stood at Rs 16,082 crore and Rs 6,021 crore, respectively, resulting in a net debt-to-equity ratio of 0.37, it stated.

The company's balance sheet is one of the healthiest among its peers with a large headroom to pursue value-accretive growth opportunities. The liquidity continues to be strong with cash balances at Rs 2,195 crore as of December 31, 2021, it stated. JSW Energy is pursuing a growth strategy to expand from the current capacity of 4.6 gigawatts (GW) to 10 GW by FY25, and 20 GW by FY30, with the entire capacity addition being driven by renewables.

Currently, 2.5 GW of greenfield (fresh) renewable energy capacity is under construction in full swing, it stated. JSW Energy's current operational portfolio comprises 30 per cent renewable energy capacity. This is expected to pivot to 70 per cent renewable energy by FY25 and 85 per cent renewable energy by FY30.

With one of the strongest balance sheets in the sector and a profitable and cash generative operating portfolio (Rs 2,195 crore of cash and cash equivalent), the company is well-positioned to pursue its growth aspiration, it stated.