Jsw Energy Limited · NSE:JSWENERGY
Jsw Energy — Q3 FY23 Earnings Presentation
49 slides from Jsw Energy's earnings presentation, Jan 20, 2023
Slide 1: Q3 FY23 Results Presentation
Q3 FY23 Results Presentation January 20, 2023
Slide 2: 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 3: Progressive commissioning of SECI X Wind Project
Progressive commissioning of SECI X Wind Project Progressive Commissioning of SECI X Wind Project JSWXEnergy SECI Q3Tamil Tuticorin, FY23 Results Presentation Nadu 3
Slide 4: Agenda
Agenda Q3FY23 Highlights Strategic Updates Operational & Financial Performance Sustainability Business Environment Appendix JSW Energy Q3 FY23 Results Presentation Vijayanagar 225MW Solar Power Plant 4
Slide 5: Q3 FY23 Highlights (1/3)
Q3 FY23 Highlights (1/3) • Net Renewable Generation: Up 3% YoY driven by contribution from Vijayanagar Solar Power Plant and SECI X Wind Power Plant • Net Long Term Generation: 4.2 billion units (BUs) flat on a YoY basis Operational Performance • Overall Net Generation: 4.3 BUs lower by 5% YoY due t
Slide 6: Q3 FY23 Highlights (2/3)
Q3 FY23 Highlights (2/3) • 1.26 GW SECI IX & X Wind projects : Progressive commissioning of SECI X project started with part- CoD received for first phase of 27 MW. Under construction - • WTG foundation and balance of plant works in-progress for SECI IX. Utility Scale Projects • 240 MW Kutehr HEP: P
Slide 7: Q3 FY23 Highlights (3/3)
Q3 FY23 Highlights (3/3) • Mytrah RE assets 1,753 MW: Transaction in advance stages with closure expected in Q4 FY23 Update on Acquisition • Ind-Barath 700 MW: Completed acquisition pursuant to NCLT order under IBC (ref. appendix) o Project revival plan in progress, expected commissioning of 700MW i
Slide 8: Strategic Update
Strategic Update Site Bridge: Karcham Wangtoo (1,091MW) JSW Energy Q3 FY23 Results Presentation 8
Slide 9: Long term vision & strategy
Long term vision & strategy Scaling towards 20 GW installed capacity by 2030 Transitioning towards Energy Products and Services Operational Under-Construction Pipeline * Under Acquisition** Energy Storage Hydro Pumped Storage (PSP) - Targeting 10 GW Resources tied-up for ~7.6 GW (~50 GWh) PSP 9.9
Slide 10: Near term growth visibility
Near term growth visibility Towards 10 GW by 2025 JSW Energy - Locked-in Capacity (GW) Capacity Growth…. 6.0 2x 10.0 4x 4.8 Target 1.6 10 GW by FY2025 Current FY 25 Current FY 25 JSW Energy Ltd JSW Neo Energy (Green Platform) ….underpinned by Under-Construction Under Acquisition Pipeline Strong Bala
Slide 11: Operational & Financial Performance
Operational & Financial Performance Ratnagiri TEP 1,200 MW
Slide 12: Consolidated Performance
Consolidated Performance Operational Highlights Q3 FY23 Net Generation (MUs) Total Revenue* (₹ crore) • Renewable net generation +3% YoY at 816MUs +33% o Led by contribution from Solar Power Plant 16,423 16,799 4,496 at Vijayanagar and SECI X Wind Project part 4,274 8,061 Short +18% 6,081 commission
Slide 13: Thermal Assets | Q3 FY23 highlights (1/2)
Thermal Assets| Q3 FY23 highlights (1/2) Total Thermal Assets Operational Assets - 3,158* MW Under Revival – 700 MW Total Thermal Capacity 3,858 MW Ratnagiri Barmer Vijayanagar Ind - Barath Operational Capacity 3,158 MW Installed Capacity 1,200 MW 1,080 MW 860 MW 700 MW PPA tied 1,095MW 1,080 MW 338
Slide 14: Thermal Assets | Q3 FY23 highlights (2/2)
Thermal Assets| Q3 FY23 highlights (2/2) Net Generation (MUs) Thermal : PLF – long term Operational Highlights Q3 FY23 • Net LT generation flat YoY at 3.4 BUs 90% 83% 83% 11,331 11,337 78% o Vijayanagar higher LT generation (+11% 3,700 68% 68% 72% 69% 3,458 YoY) was offset by lower LT generation at
Slide 15: Green driving the platform capacity
Green driving the platform capacity RE Capacity Operational Assets – 1,653 MW Under Construction/Acquisition & Pipeline – 4,385 MW JSW Neo Energy: ~6.0 GW Hydro 1,757 MW Hydro Solar Wind Hydro Wind Mytrah RE Total capacity 1,391 MW 235 MW 27 MW 366 MW 2,266 MW 1,753 MW Wind 3,624 MW Karcham SECI IX
Slide 16: Green Assets | Hydro: Q3 FY23 highlights
Green Assets| Hydro: Q3 FY23 highlights Net Generation (MUs) Hydro : PAF and PLF Operational Highlights Q3 FY23 5,082 5,192 793 107% 106% 109% 107% 721 • Net generation at Hydro Assets Short 59% (Karcham-Wangtoo and Baspa) (99%) (98%) 58% (99%), Term (99%), 5,027 5,107 down 9% YoY due to lower water
Slide 17: Consolidated Financial Results
Consolidated Financial Results 9M FY23 9M FY22 Particulars in ₹ crore Q3 FY23 Q3 FY22 8,061 6,081 Total Revenue 2,350 1,984 2,936 2,792 EBITDA 727 882 36% 46% EBITDA Margin(%) 31% 44% 611 676 Finance Cost 214 195 878 854 Depreciation 295 281 1,567 1,262 Profit Before Tax 218 405 1,206 864 Profit Aft
Slide 18: EBITDA Bridge
EBITDA Bridge Particulars in ₹ crore JSW Energy Q3 FY23 Results Presentation 18
Slide 19: Net Debt Movement
Net Debt Movement Particulars in ₹ crore Operational Projects Under-Construction/Under-Acquisition 77 298 9,840 1,764 325 (498) 7,874 6,475 5,914 3,365 1,960 Net Debt as on New Debt Taken Forex restatement Repayment Movement in short Change in Cash Net Debt as on Sep 30,2022 term borrowings & Cash E
Slide 20: 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 : Figures in ₹ crore As on Dec 31, 2022 • Generating health
Slide 21: Superior Financial Risk Profile
Superior Financial Risk Profile Net Debt (₹ crore) Net Worth (₹ crore)* and Cash Returns (%) 9,840 17,415 17,593 18,392 15,789 16,082 16,638 21% 21% 7,720 7,874 19% 20% 6,963 18% 6,509 17% 6,021 12,952 13,491 13,446 11,475 11,830 12,688 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Adjusted Net Worth **
Slide 22: Healthy Trade Receivables
Healthy Trade Receivables Consolidated Trade Receivables* (₹ crore ) • Receivables days decline to 69 days from 75 days in Q3 FY22 o Receivables (in ₹ crore) increase YoY due to higher fuel costs. 1,628 • All plants placed favourably in States’ Merit Order Dispatch. 1,356 o Further, Hydro plants und
Slide 23: Sustainability
Sustainability Baspa Reservoir
Slide 24: Continuing our Health & Safety Excellence Journey
Continuing our Health & Safety Excellence Journey Awards & Zero severe injuries/fatalities (Q3 FY23 & YTD) Recognitions 92% of contractors covered by JSW CARES audit 9 Contractors achieve 5 Star rating & 3 contractors achieve 4 Star in a stringent Internal Safety Assessment 63,000+ Cumulative Safety
Slide 25: 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 Indep
Slide 26: 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 27: Sustainability: Q3 FY23 Performance
Sustainability: Q3 FY23 Performance Key Highlights Performance • TCFD assessment initiated by reputed ESG consultant Ash Utilisation (%) Climate • Value Chain survey of suppliers initiated for assessment of supply chain Change sustainability. 100% 100% 100% 100% • Increased share of renewable energy
Slide 28: Sustainability: Initiatives and Disclosures
Sustainability: Initiatives and Disclosures Assessment initiated by reputed ESG Consultants. Increased focus on achieving climate change target of 2030 and subsequently of becoming Carbon Neutral by 2050. Task Force on Climate related Sustainability Assessment for Supply Chain and Plantation dri
Slide 29: Sustainability: Empowering Our Communities
Sustainability: Empowering Our Communities Sports Promotion & Development Health & Nutrition Project Shikhar: Bringing powerful Total 3,725 individuals across transformation in the field of sports Dharapuram (TN) and Ratnagiri (MH) with Project Shikhar screened at camps for eye problems, Shikh
Slide 30: Investor Relations Contact
Investor Relations Contact: ir.jswenergy@jsw.in ESG Data Profile: Link Pooling Substation – SECI X 30
Slide 31: Business Environment
Business Environment Baspa Hydro Power Plant
Slide 32: Indian Economy
Indian Economy Real GDP Growth (%) • India continues to see resilient growth amid headwinds from 20.1 slowing global growth and trade 13.5 8.4 5.4 6.3 o Real GDP growth for quarter Sept-22 stood at 6.3% YoY. 3.2 2.8 2.5 4.1 0.7 o PMI: Manufacturing (Dec-22: 57.8) and Services (Dec-22: -6.6 58.5) PMI
Slide 33: Power Demand grew 10% YoY in 9M FY23
Power Demand grew 10% YoY in 9M FY23 Power Demand in BUs Power Demand Growth YoY 40% 140 • The total demand recorded in 9M FY23 30% 119 120 was 1,135 BUs up 10% YoY. 20% 100 8.9% • On a quarterly basis India witnessed a 10% demand of 344 BUs in Q3 FY23 vs 323 80 0% Apr May Jun Jul Aug Sep Oct Nov De
Slide 34: Overall generation increased by 10% YoY in 9M FY23
Overall generation increased by 10% YoY in 9M FY23 Power Generation growth (%YoY) Thermal PLFs • In 9M FY23 the overall generation 85 40% increased 10% YoY led by growth in 30% 75 renewable (excluding hydro) and 65.0 20% 65 thermal generation 10% +7.9% 55 • For 9M FY23 renewable generation 0% increa
Slide 35: India's installed capacity stands at 410 GW as on Dec-22
India’s installed capacity stands at 410 GW as on Dec-22 Sector-wise Installed Capacity Segment-wise Installed Capacity Renewable Capacity Breakdown 2% 120.9 11% 24% 26% 15.7 Thermal Solar State 41.9 Private Nuclear 410 GW 29% Wind Central Hydro 410 GW Renewable 57% Other RES 63.3 50% Overall segmen
Slide 36: Merchant Power – Day Ahead Market
Merchant Power – Day Ahead Market YoY Trend: Monthly Average Merchant Tariff Linear Trend - Monthly Avg Price (Rs/kwh) (Rs/unit) 11.00 Q3 FY23 12 9.00 • Day Ahead Market (DAM) 10 7.00 prices were down 7% YoY as 8 the average tariff recorded for 6 5.00 5.23 the period was ₹ 4.55/KWh vs 4 3.00 ₹4.89/K
Slide 37: Appendix
Appendix Hydro Power Plant - Turbine
Slide 38: 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 JSW Energy (Jharsuguda) Ltd Jaigad Power Transco JSW Power Trading Co. (1080 MW
Slide 39: Asset Overview – 9.9 GW Locked-In
Asset Overview – 9.9 GW Locked-In Green portfolio driving capacity growth Division of locked-in capacity (9,896) MW Installed (MW) Locked In Growth (MW) 39.0% 48.6% 27 2,293 Installed Thermal 235 1,331 1,391 4,811 9,896 3,158 422 36.6% Under- 29.4% 3,158 construction Wind 1,757 700 Ind-Barath Pipeli
Slide 40: Update on Under Construction Projects (1/2)
Update on Under Construction Projects (1/2) SECI-IX & X Wind, Tamil Nadu (1,260 MW) Blades and WTG erection followed by progressive commissioning (27MW commissioned) Corporate Structure Projects Acquisitions Operational & Financial JSW Energy Q3 FY23 Results Presentation 40
Slide 41: Update on Under Construction Projects (2/2)
Update on Under Construction Projects (2/2) Kutehr HEP, Himachal Pradesh (240MW) Completed ~90% (19.0 km) tunneling work (up from ~84% in Q2) well ahead of timelines Downstream Left Half Barrage DC Chamber lining in progress HRT concrete lining Corporate Structure Projects Acquisitions Operational &
Slide 42: Pipeline Project: Pumped Hydro Storage
Pipeline Project : Pumped Hydro Storage Overview of Pump Hydro Storage JSW Energy Secured Resouces in Various States State MoU/LoI Dates Capacity (GW) Sep-21 Maharashtra 2.5 Sep-22 Telangana Apr-22 1.5 Uttar Pradesh Nov-22 1.2 Rajasthan Dec-21 1.0 Chhattisgarh Aug-22 1.0 Jun-22 Karnataka 0.4 Nov-22
Slide 43: Acquisition pursuant to NCLT order under IBC (1/2)
JSW Energy: Acquisition pursuant to NCLT order under IBC (1/2) Ind-Barath: Asset Overview o Location: Jharsuguda, Odisha o Configuration: 2 x 350 MW | Thermal Power Plant o Technology: Sub-critical TPP o Fuel Source: Domestic coal o Transaction completed in Dec-22 Acquisition Rationale o Attractive
Slide 44: Ind-Barath: Timeline of Acquisition and Way Forward (2/2)
Ind-Barath: Timeline of Acquisition and Way Forward (2/2) Subsequent to negotiation with Committee of Creditors Corporate Insolvency Resolution Plan (CoC) Revised RP Transaction completion Resolution Process (RP) submitted submitted. with effect from 28- initiated against ‘Ind- The RP was approved b
Slide 45: Mytrah Acquisition at Advance Stage
Mytrah Acquisition at Advance Stage Value Accretive Deal Mytrah RE Assets: Geographically diverse Acquired portfolio consists of 422 MW solar and 1,331 MW wind The assets were acquired at an EV of approximately ₹ 10,530 Cr after adjusting for net current assets implying a EV/EBITDA multiple of 6
Slide 46: Entity-wise Financial Results
Entity-wise Financial Results Entity-wise Revenue from Operations Particulars in ₹ crore Q3 FY23 Q3 FY22 9M FY23 9M FY22 Standalone 955 1,002 4,093 2,562 JSW Energy (Barmer) 994 625 2,277 1,927 JSW Hydro Energy 246 222 1,142 1,027 JPTL 17 18 52 53 Consolidated* 2,248 1,905 7,662 5,726 Entity-wise EB
Slide 47: Operational Performance – Net Generation
Operational Performance – Net Generation Net Generation Capacity Q3 Q3 Change YoY 9M 9M Change YoY Location % FY23 FY22 % FY23 FY22 % LT 89% 1,110 1,133 -2% 3,617 3,980 -9% Ratnagiri (1,200 MW) Total 100% 1,133 1,235 -8% 3,961 4,160 -5% Barmer (1,080 MW) LT 100% 1,609 1,638 -2% 4,814 4,907 -2% LT 36
Slide 48: Operational Performance – PLF
Operational Performance – PLF PLF Capacity Q3 FY23 Q3 FY22 9M FY23 9M FY22 Location % % % % % LT 89% 51 (*98) 52 (*70) 56 (*83) 62 (*81) Ratnagiri (1,200 MW) Total 100% 47 (*88) 51 (*67) 55 (*79) 57 (*75) Barmer (1,080 MW) LT 100% 75 (*77) 75 (*81) 75 (*78) 76 (*81) LT 36% 104 (*104) 96 (*96) 98 (*9
Slide 49: Cash Returns on Adjusted Net Worth
Cash Returns on Adjusted Net Worth ₹ crore (Unless mentioned otherwise) Quarter ended Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Reported PAT 107 201 339 324 864 560 466 180 Add: Depreciation 294 288 284 281 277 289 294 295 Add/(less): Deferred Taxes 27 21 32 26 (7) 84 42 14 (Less): Div