Jsw Energy Limited · NSE:JSWENERGY
Jsw Energy — Q1 FY23 Earnings Presentation
63 slides from Jsw Energy's earnings presentation, Jul 21, 2022
Slide 1: Results presentation cover letter to exchanges
Energy Limited Regd. Office : JSW Centre Bandra Kurla Complex Bandra (East), Mumbai - 400 051 CIN: L74999MH1994PLC077041 Phone: 022 – 4286 1000 Fax: 022 – 4286 3000 Website: www.jsw.in SEC / JSWEL 21st July, 2022 BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers “Exchang
Slide 2: Q1 FY23 Results Presentation
Q1 FY23 Results Presentation July 21, 2022
Slide 3: Forward Looking and Cautionary Statement
Forward Looking and Cautionary Statement This presentation has been prepared by JSW Energy Limited (the “Company”) based upon information available in the public domain solely for information purposes without regard to any specific objectives, financial situations or informational needs of any parti
Slide 4: Agenda
Agenda Key highlights for Q1 FY23 Sustainability Update on Growth Projects Operational & Financial Performance Business Environment Appendix JSW Energy Q1 FY23 Results Presentation 3
Slide 5: Key Highlights for Q1 FY23 (1/2)
Key Highlights for Q1 FY23 (1/2) • Overall Generation: higher by 14% YoY on the back of strong merchant demand, better hydrology and capacity increase in RE • Total Thermal Generation: up 12% YoY, driven by increased merchant market sales Operational • Total Hydro Generation: higher by 13% YoY due t
Slide 6: Key Highlights for Q1 FY23 (2/2)
Key Highlights for Q1 FY23 (2/2) • Group Captive 958 MW Wind & Solar: commenced operations at 225 MW solar plant in Apr’22; balance wind capacities commissioning from Q1 FY24 Strategic • SECI IX & X 1.26 GW Wind projects: Phase-wise commissioning in Q2 FY23 Update on 2.5 GW • Kutehr HEP 240 MW: Proj
Slide 7: Sustainability
Sustainability
Slide 8: Continuing our Health & Safety Excellence Journey
Continuing our Health & Safety Excellence Journey All Figures are for Q1 FY23 Awards & Recognitions Zero severe injuries/fatalities 77% of contractors covered by JSW CARES audit. 5 Star rating achieved by 7 contractors & 4 Star rating achieved by 2 contractors in a stringent Internal Safety Assessme
Slide 9: Sustainability: Framework and Policies
Sustainability: Framework and Policies 17 Focus Areas with 2030 Targets from 2020 as Base Year Governance & Oversight by Sustainability Committee Climate Change: Renewable Power: Biodiversity: Committed to being carbon Enhance the renewable power to No Net Loss for Biodiversity Mr. Sunil Goyal 2/3rd
Slide 10: Sustainability: Targets and Strategy
Sustainability: Targets and Strategy FY20 FY30 SD Targets Actuals Targets Improvement Strategic Initiatives and Approach Increased share of renewable energy for deep decarbonization GHG Emissions Process efficiency improvements Climate Change 0.76 0.304 60% tCO2e/ MWh Replacement of condense
Slide 11: Sustainability: Q1 FY23 Performance
Sustainability: Q1 FY23 Performance Key Highlights Performance • Increased share of renewable energy for deep decarbonisation Ash Utilisation (%) Climate • Generation commenced at Solar project at Vijayanagar Change • Installation in progress for Wind Projects at Tuticorin 100% 100% 100% • Continuou
Slide 12: Sustainability: Initiatives and Disclosures
Sustainability: Initiatives and Disclosures Hydro- Sholtu Ratnagiri Collaborative effort of employees Plantation drive carried near the at JSW Hydro and Staff of Forest vicinity of the facility wherein 200 department –Plantation of mango saplings were planted. different variety of pine saplings
Slide 13: Sustainability: Empowering Our Communities
Sustainability: Empowering Our Communities Sports Promotion & Development Community Development & Support Organized a state-level boxing Barmer: Solar powered lights have been championship in collaboration with Kinnaur installed in 12 villages. 38 tons of fodder Boxing Association in Himachal Pr
Slide 14: Update on Growth Projects
Update on Growth Projects
Slide 15: Twin Engines of Growth for significant value creation
Twin Engines of Growth for significant value creation Scaling to 20 GW by 2030 via Renewables Being future-ready future-ready :: New New Energy Energy Solutions Solutions Energy Storage: Hydro Pumped Storage (PSP) and Battery Storage Operational Under-Construction Recent LoA* 20 GW Hydro PSP: Targ
Slide 16: Robust Balance Sheet & Cashflows to aid growth
Robust Balance Sheet & Cashflows to aid growth Large balance sheet headroom to pursue growth Healthy internal accruals & financial flexibility to opportunities support long term growth Operational Portfolio (4.8 GW): • Strong credit metrics : • Generating healthy CF & mid-teen equity returns Figures
Slide 17: A notable feat: 225 MW Solar Power Plant
A notable feat: 225 MW Solar Power Plant JSW Energy Q1 FY23 Results Presentation 16
Slide 18: A notable feat: 225 MW Solar Power Plant
A notable feat: 225 MW Solar Power Plant Key Highlights Superior Operational Performance 28 Commenced operations at 225 MW solar power plant at Vijayanagar in Apr’22. The plant is installed on 27 approximately 1000 acres’ land. 26 Construction completed in a record time of less than 12 months de
Slide 19: Progress Update on Renewable Projects (1/3)
Progress Update on Renewable Projects (1/3) 2.5 GW Renewable Projects Portfolio Capacity Scheduled Target Plant Segment Location PPA/Offtake (MW) Commissioning Commissioning Group Captive Operational from 225 Solar Karnataka 25-Year; JSW Steel NA – JSW Steel Apr’22 SECI - IX 810 Wind Tamil Nadu 25-Y
Slide 20: Progress Update on Renewable Projects (2/3)
Progress Update on Renewable Projects (2/3) 1,260 MW SECI-IX & X Wind, Tamil Nadu WTG Erection work in progress Nacelle Erection work in progress WTG Erection work in progress JSW Energy Q1 FY23 Results Presentation 19
Slide 21: Progress Update on Renewable Projects (3/3)
Progress Update on Renewable Projects (3/3) 240 MW Kutehr HEP, Himachal Pradesh Diverted river stream in the barrage successfully Completed ~75% (16.0 km) tunneling work (up from ~70% in Q4 FY22) well ahead of timelines JSW Energy Q1 FY23 Results Presentation 20
Slide 22: Operational & Financial Performance
Operational & Financial Performance
Slide 23: Operational Performance – Q1 FY23
Operational Performance – Q1 FY23 Net Generation (MU) Hydro: PAF and PLF • Hydro PAF and PLF higher YoY 19% 1,670 107% 108% 1Q FY22 Renewable 1,398 1391 MW Hydro* 8 Short Term 1Q FY23 • Renewable Net Generation higher by 19% YoY 49% 54% 234 MW Solar ** 1,398 1,662 Long Term o Uprating of Karcham Wan
Slide 24: Consolidated Financial Performance
Consolidated Financial Performance Total Revenue1 (₹ Crore) EBITDA (₹ Crore) and EBITDA Margins 3,115 1,111 34% 68% 830 1860 • Total Revenue and EBITDA increase 45% mainly attributable to higher 36% contribution from short term sales • Steady Revenue and EBITDA Q1 FY22 Q1 FY23 Q1 FY22 Q1 FY23 genera
Slide 25: Consolidated Financial Results
Consolidated Financial Results Particulars in ₹ Crore Q1 FY23 Q1 FY22 Total Revenue 3,115 1,860 EBITDA 1,111 830 EBITDA Margin(%) 36% 45% Finance Cost 193 290 -Underlying 193 198 -One-off - 92 Depreciation 289 288 Exceptional income/(expense) 120 - Profit Before Tax 749 252 Profit After Tax 560 201
Slide 26: EBITDA Bridge
EBITDA Bridge Particulars in ₹ Crore Long Term PPAs and superior O&M ensuring steady EBITDA; one-off boosts from Short Term market JSW Energy Q1 FY23 Results Presentation 25
Slide 27: Net Debt Movement
Net Debt Movement Particulars in ₹ Crore Growth Capex and Dividend pay-out resulting in increase in Net Debt JSW Energy Q1 FY23 Results Presentation * Includes unencumbered bank balances, FDs, and liquid mutual funds. 26
Slide 28: Superior Financial Risk Profile
Superior Financial Risk Profile Net Worth & Cash Returns Net Debt (₹ Crore) 16,082 17,415 16,638 15,939 15,789 7,720 14,507 21% 19% 6,963 18% 6,565 6,509 17% 6,206 6,021 17% 17% 11,473 11,529 11,475 11,830 12,688 12,952 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun
Slide 29: Healthy Trade Receivables
Healthy Trade Receivables • Receivables days decline to 45 days at Jun’22 from 85 days at Consolidated Trade Receivables* (₹ Crore ) Jun’21 o Receivables (in ₹ Crore) increase QoQ due to increase in the fuel cost; however lower on DSO terms 1,902 o This is in contrast to the power sector scenario wh
Slide 30: Investor Relations Contact
Investor Relations Contact: ir.jswenergy@jsw.in ESG Data Profile: Link 29
Slide 31: Business Environment
Business Environment
Slide 32: Indian Economy
Indian Economy • High-frequency economic indicators reflect robust recovery Real GDP Growth (%) 20.1 • Manufacturing PMI and Services PMI prints are encouraging 8.4 • Industrial output was robust at 12.9% in April-May 4.9 4.2 3.2 2.8 2.5 5.4 4.1 0.7 • Strong GST receipts, albeit moderation from a re
Slide 33: Power Demand
Power Demand Power Demand Growth YoY • Power demand in Q1 FY23 saw a strong increase 38% of 18.6% YoY. 40% 30% • Heatwave in northern India supported the 24% demand. 20% 17% 17% 15% 9% 11% • This was off a low base of Q1 FY22. 10% 6% 4% 4% 7% 2% 3% 2% 0% • All India peak power demand stood at 212 0%
Slide 34: Power Generation
Power Generation Power Generation Growth YoY Segment-wise Share in Generation (BUs) 39% 40% 1,389 1,382 1,490 369 431 4% 3.7% 3.7% 3.5% 2.9% 30% 23% 10% 10.7% 11.4% 11.7% 12.6% 11% 10.9% 10.2% 9.8% 8.9% 20% 16% 16% 12% 11% 8% 8% 10% 5% 5% 3% 2% 3% 75% 74.7% 74.8% 75.0% 75.6% 1% 1% 0% Apr May Jun Jul
Slide 35: Installed Capacity (1/2)
Installed Capacity (1/2) Sector-wise Installed Capacity Segment-wise Installed Capacity State, 105.0 GW Central, 99.0 GW 26.0% +114 MW* 114.1 GW Renewable, 24.5% +0 MW* +4,179 MW* 28.3% 403.8 GW 403.8 GW Thermal, 59.1% 236.1 GW Hydro, 46.9 GW 11.6% -43 MW* Private, +128 MW 49.5% Nuclear, 1.8% 6.8 GW
Slide 36: Installed Capacity (2/2)
Installed Capacity (2/2) Overall Segment-wise Net Capacity Addition (GW) RE Segment-wise Net Capacity Addition (GW) 17.3 0.5 15.5 0.4 14.0 0.3 1.1 12.0 0.5 9.4 9.4 15.5 0.9 7.4 7.4 4.3 2.1 0.4 13.9 4.2 1.6 2.0 0.1 0.1 2.5 4.3 4.2 0.4 4.1 6.4 2.5 5.5 0.2 1.4 3.7 -0.6 2.3 FY 20 FY 21 FY 22 Q1 FY 22 Q1
Slide 37: Merchant Power – Day Ahead Market
Merchant Power – Day Ahead Market YoY Trend: Monthly Average Merchant Tariff (₹/unit) Linear Trend - Monthly Avg Price (₹/kwh) 11.00 12 10.06 9.00 10 8.01 8.23 7.00 8 6.76 6.49 6 5.00 5.06 4.40 4.44 3.70 3.58 3.39 4 3.06 2.95 3.08 3.00 2.83 2 1.00 Oct Jan Sep Feb Dec Apr Jun Jul Aug May Nov Mar Jun-
Slide 38: Appendix
Appendix sass a
Slide 39: Entity-wise Financial Results
Entity-wise Financial Results Entity-wise Revenue from Operations Particulars in ₹ Crore Q1 FY23 Q1 FY22 Standalone 1,997 758 JSW Energy (Barmer) 618 637 JSW Hydro Energy 357 291 JPTL 17 18 JSW Renewable Energy Vijayanagar 33 - Consolidated* 3,026 1,728 Entity-wise EBITDA Particulars in ₹ Crore Q1 F
Slide 40: Operational Performance – Net Generation
Operational Performance – Net Generation Net Generation Capacity Q1 FY23 Q1 FY22 Change YoY Location % MUs MUs % LT 89% 1,205 1,382 -13% Ratnagiri (1,200 MW) Total 100% 1,518 1,410 8% Barmer (1,080 MW) LT 100% 1,554 1,573 -1% LT 35% 546 615 -11% Vijayanagar (860 MW) Total 100% 1100 733 50% Nandyal (
Slide 41: Operational Performance – PLF
Operational Performance – PLF PLF/CUF Capacity Q1 FY23 Q1 FY22 Location Remarks – Q1 FY23 % % % LT 89% 56 (*70) 63 (*80) Ratnagiri (1,200 MW) Total 100% 63 (*76) 59 (*74) Higher ST sales Barmer (1,080 MW) LT 100% 73 (*75) 73 (*79) Stable LT 35% 89 (*89) 102 (*103) Vijayanagar (860 MW) Total 100% 63
Slide 42: Cash Returns on Adjusted Net Worth
Cash Returns on Adjusted Net Worth ₹ Crore (Unless mentioned otherwise) Quarter ended Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Reported PAT 352 124 107 201 339 324 864 560 Add: Depreciation 292 292 294 288 284 281 277 289 Add/(less): Deferred Taxes 22 17 27 21 32 26 (7) 84 (Less): Div
Slide 43: Re-organisation of Green and Grey Business
Re-organisation of Green and Grey Business To facilitate growth and unlock value for the shareholders, the renewable energy business will be housed under ‘JSW Neo Energy Limited’, a wholly owned subsidiary of the Company, while the thermal business will continue to be housed in the Company The follo
Slide 44: Broad Corporate Structure : Existing
Broad Corporate Structure : Existing Ratnagiri – 1,200 MW Vijayanagar – 860 MW Hydro Entities JSW Energy Limited Nandyal – 18 MW Solar – 10 MW Solar/Wind Entities Total – 2,088 MW JSW Hydro Energy Limited JSW Energy (Barmer) Limited Jaigad Power Transco JSW Power Trading Co. (1,391 MW) JSW Future En
Slide 45: Broad Corporate Structure : Post re-organisation
Broad Corporate Structure : Post re-organisation Ratnagiri – 1,200 MW Vijayanagar – 860 MW Hydro Entities JSW Energy Limited Nandyal – 18 MW Solar/Wind Entities Total – 2,088 MW JSW Neo Energy JSW Energy (Barmer) Limited Jaigad Power Transco JSW Power Trading Co. (1080 MW) Limited* Limited 3,859 MW
Slide 46: Independent Auditor's Review Report (Standalone)
Chartered Accountants Deloitte One International Center Tower 3, 27th-32nd Floor Haskins & Sells LLP Senapat l Bapat Marg Elphinstone Road (West) Mumba i-400 013 Maharashtra, India Tel: +91 22 6185 4000 Fax: +91 22 6185 4101 INDEPENDENT AUDITOR’S REVIEW REPORT ON REVIEW OF INTERIM STANDALONE FINANCI
Slide 47: Standalone Unaudited Financial Results Q1 FY23
~ -"5H' ENERGY LIMITED Registered Office : JSW Centre, Bandra Kurla Complex, Bandra (East), Mumbai-400051 CIN : L74999MH1994PLC077041 Statement of Standalone Unaudited Financial Results for the Quarter Ended June 30, 2022 "crore Quarter Ended Year Ended Sr. 31.03.2022 Particulars 30.06.2022 31.03.20
Slide 48: Additional information pursuant to Regulation 52(4)
Additional information pursuant to Regulation 52(4) of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations , 2015, as amended: As at/ As at/ Sr. Quarter Ended Year Ended Particulars No. 30.06.2022 31.03.2022 30.06.2021 31.03.2022 Debt-Equity Ratio (in
Slide 49: Notes to Standalone Financial Results
Notes : 1 Exceptional item ~ 120.00 crore represents reversal of loss allowance recognised in earlier years on loan given to a party. 2 The Company has considered the possible effects that may result from the pandemic relating to COVID-19 in the preparation ol these results , The Company's substanti
Slide 50: Independent Auditor's Review Report (Consolidated)
Chartered Accountants Deloitte One International Center Tower 3, 27th-32nd Floor Haskins & Sells LLP Senapati Bapat Marg Elphinstone Road (West) Mumbai-400 013 Maharashtra, India Tel: •91 22 6185 4000 Fax: •91 22 6185 4101 INDEPENDENT AUDITOR’S REVIEW REPORT ON REVIEW OF INTERIM CONSOLIDATED FINANCI
Slide 51: Auditor's Review Report (continued)
Deloitte Haskins & Sells LLP | financial results have been reviewed by other auditors whose reports have been furnished to us by the Management and our conclusion on the Statement, in so far as it relates to the amounts and disclosures included in respect of these subsidiaries, is based solely on th
Slide 52: List of entities included in consolidated results
Deloitte Haskins & Sells LLP Appendix A List of entities included in consolidated financial results I. Parent JSW Energy Limited II. Subsidiaries a) JSW Hydro Energy Limited (formerly known as Himachal Baspa Power Company Limited) b) JSW Energy (Kutehr) Limited c) JSW Energy (Raigarh) Limited d) JSW
Slide 53: Consolidated Financial Results Q1 FY23
ENERGY LIMITED Registered Office : JSW Centre, Sandra Kurla Complex, Sandra (East), Mumbai 400051 CIN: L74999MH1994PLC077041 Statement of Consolidated Financial Results for the Quarter Ended June 30, 2022 f crore Quarter Ended Year Ended Sr. Particulars 30.06.2022 31.03.2022 30.06.2021 31.03.2022 No
Slide 54: Notes to Consolidated Financial Results
Notes: Exceptional items ~ 120 crore represents reversal of loss allowance recognised in earlier years on loan given to a party. 2 The Group has considered the possible effects that may result from the pandemic relating to COVID-19 in the preparation of these results. The Group's substantial generat
Slide 55: Press Release: Financial Results for the Quarter ended June 30, 2022
~ _,,l'S"H'Energy Press Release July 21, 2022 Financial Results for the Quarter ended June 30, 2022 Mumbai, India: JSW Energy limited ("JSW Energy" or the "Company") today reported its results for the quarter ("Ql FY23" or the "Quarter") ended June 30, 2022. Key Highlights of Ql FY23 (Consolidated):
Slide 56: Update on Growth Strategy
Update on Growth Strategy: • Group Captive 958 MW Wind & Solar: commenced operations at solar plant in Apr'22; balance wind capacities commissioning from Ql FY24 • SECI IX & X 1.26 GW Wind projects: Phase-wise commissioning to commence in Q2 FY23 • Kutehr HEP 240 MW: Project well ahead of timelines
Slide 57: Long Term sales during the quarter
Long Term sales 1 during the quarter at 4,976 million units were at similar levels of Ql FY22 (4,994 million units) as the higher sales at Hydro business were offset by lower sales at Thermal businesses. Short term sales during the quarter at 874 million units versus 147 million units in Ql FY22 due
Slide 58: Consolidated Financial Performance Review and Analysis
Consolidated Financial Performance Review and Analysis: During the quarter, Total Revenue increased by 68% YoY to ,3,115 Crore from ,1,860 Crore in Ql FY22. As a result, EBITDA for the quarter was higher by 34% YoY at ,1,111 Crore vis-a-vis ,830 Crore in the corresponding period of previous year. Th
Slide 59: Growth strategy to 10 GW by FY25 and 20 GW by FY30
JSW Energy is pursuing a growth strategy to expand from the current platform capacity of 7.3 GW to 10 GW by FY25, and 20 GW by FY30, with the entire capacity addition being driven by renewables. 2.25 GW of greenfield renewable energy capacity is currently under construction in full swing: • SECI IX
Slide 60: Business Environment
Business Environment 4 : • India's power demand increased by 18.6% YoY in Ql FY23, reflecting demand from northern stated due to the extreme heatwave also supported by a low base of Ql FY22. • Further, the all India peak power demand touched high of 212 GW in Jun'22, up 11% YoY. • In line with deman
Slide 61: India's macro-economic data and outlook
• India's latest macro-economic data reflect robust economic recovery. Services PMI prints are strong, on account of easing pandemic-related restrictions leading to improved customer footfalls . Manufacturing PMI is encouraging and Industrial output was robust at 12.9% in April-May. GST collections
Slide 62: Capacity addition and net-zero commitment
capacity addition is expected to meet the incremental power demand. The financial health of discoms continues to be a key concern. • JSW Energy Limited has joined the global movement of leading companies that are aligning their business to limit global temperature rise to 1.5°C above preindustrial l
Slide 63: About JSW Energy
ABOUT JSW ENERGY: JSW Energy Ltd is one of the leading Private sector power producers in India and part of the USO 22 billion JSW Group which has significant presence in sectors such as steel, energy, infrastructure, cement, sports among others . JSW Energy Ltd has established its presence across th