Jsw Energy Limited · NSE:JSWENERGY
Jsw Energy — Q1 FY24 Earnings Presentation
65 slides from Jsw Energy's earnings presentation, Jul 14, 2023
Slide 1: Q1 FY24 Results Presentation
Q1 FY24 Results Presentation July 14, 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: Agenda
Agenda Q1 FY24 Highlights Operational & Financial Performance Segment Wise Performance JSW Energy – at Glance Safety & Sustainability Business Environment Appendix JSW Energy Q1 FY24 Results Presentation Vijayanagar 225MW Solar Power Plant 3
Slide 4: Q1 FY24 Highlights (1/2)
Q1 FY24 Highlights (1/2) • Overall Net Generation: Up by 14% YoY at 6.7 BUs driven by new RE capacities (including Mytrah) and higher generation at Ratnagiri, partly offset by lower generation at Hydro assets. • Net Renewable Generation: Up by 35% YoY at 2.3 BUs due to RE capacity additions Operatio
Slide 5: Q1 FY24 Highlights (2/2)
Q1 FY24 Highlights (2/2) • EBITDA at ₹1,307 Cr up 18% YoY resulting in reported PAT of ₹290 Cr and operating cash PAT of ₹792 Cr On a sequential basis, EBITDA and PAT increased by 48% and 7% respectively Consolidated • Receivables (excl. Mytrah) improved 13% YoY while DSO stood at 58 days; healthy c
Slide 6: Operational & Financial Performance
Operational & Financial Performance Sholtu Hydro Power Plant - Turbine
Slide 7: Consolidated Performance
Consolidated Performance Net Generation (MUs) Total Revenue (₹ Cr) Operational Highlights • Overall Net Generation: Up by 14% YoY at 6.7 14% 3% BUs driven by Mytrah and higher generation at 6,699 3,115 5,850 3,013 Ratnagiri, partly offset by lower generation at Hydro assets. Short Term 85% 88% Long
Slide 8: EBITDA Bridge
EBITDA Bridge Q1 FY24 Particulars in ₹ Cr New Businesses To be recouped # Short term volumes in Q1 FY23 accounted for 50% of the full year merchant volumes Short term sales lower YoY due to unfavorable base effect • * Mytrah’s Proforma EBITDA in Q1 FY24 stood at ₹ 400 Cr, since 2 SPVs were consolida
Slide 9: Finance Cost & PAT Movement
Finance Cost & PAT Movement Finance Cost (YoY; ₹ Cr) 3 486 59 41 20 Finance Cost 170 193 • Mytrah re-financing completed • One - off refinancing impact in the quarter Q1 FY23 Mytrah One-time Ind Barath Standalone Others Q1 FY24 refinancing impact Profit After Tax (YoY; ₹ Cr) 70 14 40 17 26 440 29 96
Slide 10: Consolidated Financial Results
Consolidated Financial Results Particulars in ₹ Crore Q1 FY24 Q1 FY23 Total Revenue 3,013 3,115 EBITDA 1,307 1,111 EBITDA Margin(%) 43% 36% Finance Cost 486 193 Interest Cost 445 193 Exceptional 1 41 - Depreciation 398 289 Exceptional income/(expense) 0 120 Profit Before Tax 424 749 Profit After Tax
Slide 11: Net Debt Movement
Net Debt Movement Particulars in ₹ Cr Leverage Net Debt (₹ Cr) EBITDA (TTM; ₹ Cr) ND/EBITDA (x) Under-Construction Operating 10,146 3,639 2.8x Mytrah Operational Projects Mytrah (Normalised EBITDA) 8,222 1,650 5.0x Combined (Excl. Under construction) 18,368 5,289 3.5x 8 3,855 2,801 2,136 22,904 22,1
Slide 12: Superior Financial Risk Profile
Superior Financial Risk Profile Net Debt (₹ Cr) Net Worth (₹ Cr)* & Cash Returns (%) 22,180 22,904 19,111 17,415 16,638 17,593 18,392 18,629 21% 20% 19% 21% 18% 18% 9,840 6,963 7,720 7,874 12,688 12,952 13,491 13,446 14,177 14,061 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Mar-22 Jun-22 Sep-22 Dec-22
Slide 13: Healthy Trade Receivables
Healthy Trade Receivables Consolidated Trade Receivables Excluding Mytrah* (₹ Cr ) Operational Highlights • Receivables (in ₹ Cr) reduced by 21% sequentially 21% o Receivables days (excl. Mytrah) further improved to 58 1,799 days in Q1 FY24 1,426 • All plants placed favourably in States’ Merit Order
Slide 14: Segment Wise Performance
Segment Wise Performance Vijaynagar Thermal Power Plant- Control Room
Slide 15: Thermal Assets | Q1 FY24 Highlights (1/2)
Thermal Assets| Q1 FY24 Highlights (1/2) Total Thermal Assets Operational Assets - 3,158* MW Under Construction Total Thermal Capacity 3,858 MW Ratnagiri Barmer Vijayanagar Ind - Barath Operational Capacity Installed Capacity 1,200 MW 1,080 MW 860 MW 700 MW 3,158 MW PPA tied 1,095MW 1,080 MW 338 MW
Slide 16: Thermal Assets | Q1 FY24 Highlights (2/2)
Thermal Assets| Q1 FY24 Highlights (2/2) Net Generation (MUs) Thermal : PLF – long term Operational Highlights 6% • Total Net Generation +6% YoY at 4.4 BUs, 4,181 4,440 86% supported by higher generation at Ratnagiri 73% 75% 67% partly offset by lower generation at Barmer plant Short Term 82% 79% 3,
Slide 17: Renewable Assets | Presence across all modes of generation
Renewable Assets | Presence across all modes of generation JSW Neo 5,912 MW Operational Assets – 3,509 MW Under Construction – 2,403 MW Expected to be operational by CY 2024 HYDRO WIND WIND 3,624 MW Wind 61% SOLAR HYDRO Karcham Mytrah Wind SECI IX (810) 1,631 MW Wangtoo (1,331) Hydro 28% (1,091) Vij
Slide 18: Renewable Assets | Q1 FY24 Highlights
Renewable Assets |Q1 FY24 Highlights Installed Green Capacity (MW) Net Generation (MUs) Operational Highlights 35% • Net generation +35% YoY to 2.3 BUs 3,509 2,259 * driven by capacity additions while lower 2.2x waterflow impacted the generation at 1,670 Hydro assets 1,616 100% Short Term 100% 2,248
Slide 19: Renewable Assets | Hydro Q1 FY24 Highlights
Renewable Assets | Hydro Q1 FY24 Highlights Net Generation (MUs) Hydro : PAF and PLF 27% Operational Highlights 108% 108% 1,572 • Net generation at Hydro Assets 1,144 54% Short Term (Karcham and Baspa) down due to 99% 39% 99% Long Term 1,564 lower water flow during the quarter. 1,133 • Plant availab
Slide 20: Renewable Assets | Vijayanagar Solar
Renewable Assets | Vijayanagar Solar P-90 vs Actual Generation P-90 vs Actual CUF 30.3% 30.3% 29.7% 29.2% 49.2 49.7 28.4% 46.0 22.0% 49.3 49.0 35.7 Apr-23 May-23 Jun-23 Apr-23 May-23 Jun-23 P-90 Gen (MUs) Actual Gen (MUs) P-90 CUF Actual CUF Generation remained consistently above P-90 levels in the
Slide 21: Renewable Assets | Mytrah RE Portfolio
Renewable Assets | Mytrah RE Portfolio Operational Highlights Financials Highlights Generation (MUs) Mytrah EBITDA (₹ cr) 911* Normalised EBITDA 917 1,650 >1,450 1,187 720 695 198 216 400 * Wind Solar Total FY 2023 FY 2024 FY 2025 Q1 FY23 Q1 FY24 Q1 Machine/Plant Availability CUF (%) +70 bps +205 bp
Slide 22: JSW Energy at a Glance
Company Overview JSW Energy at a Glance Towards Integrated and Sustainable Growth 22 Mytrah Solar Plant- Raibag, Karnataka
Slide 23: JSW Energy – Presence across the value chain
JSW Energy – Presence across the value chain Well placed to achieve 10 GW of generation capacity ahead of stated timeline of 2025 with foray into New Age Businesses Power Generation Energy Storage Energy Products & Services 9.8 GW Installed Capacity by CY24 3.4 GWh of locked in capacity Solar Module
Slide 24: Well Diversified Portfolio – Focused on Maximising Cash Returns
Well Diversified Portfolio – Focused on Maximising Cash Returns Capacity Breakdown Diversified Offtakers Current open Open Capacity, Generation 9,780 MW capacity – 11% Group 14% Captive, 22% Installed 6,677 MW Under-construction Others, 7% 3,103 MW Current Exposure to 32% Thermal 3,158 MW HP, 3% Gro
Slide 25: Developed a Pan India Footprint of Diverse Asset Base
Developed a Pan India Footprint of Diverse Asset Base Operational Capacity by CY 24 (9,780 MW) Punjab Himachal Pradesh Wind Hydro 50 MW 1,631 MW Solar BESS Rajasthan Thermal PSP 258 MW Madhya Pradesh 30 MW Green Hydrogen 1,080 MW 1,000 MWh Gujarat 78 MW Odisha 700 MW Maharashtra Telangana 447 MW And
Slide 26: Strategy 2.0 (2023-2030) – at glance
Strategy 2.0 (2023-2030) – at glance Forward integration 1 GW/ annum of RE generation 40 GWh/ 5GW ~3,800 TPA PV Module ENERGY STORAGE ELECTRONS TO 20 GW MOLECULES Solar Module GENERATION Pump Hydro Storage manufacturing CAPACITY (W-C-M) under PLI Green Hydrogen scheme, to be operational Locked in Si
Slide 27: Progress on Strategy 2.0
Progress on Strategy 2.0 Under Construction 3.1 GW, to be Commissioned by CY24 Under-Construction (MW) Operational by CY2024 300 9,780 700 733 240 810 6,677 320 1,000MWh BESS 4,559 18% CAGR 29% CAGR FY21 Current SECI - X SECI- IX Group Captive Kutehr Ind Barath SECI- XII Operational by Operational W
Slide 28: Safety & Sustainability
Safety & Sustainability Sholtu, Charkha Initiative
Slide 29: Continued Focus on Health & Safety Excellence
Continued Focus on Health & Safety Excellence All Figures are for Q1 FY24 Zero severe injuries/fatalities British Safety Council Lost Time Injury Frequency Rate of zero at all the operational plants Award for OH&S 83% of contractors covered by JSW CARES audit 18 Contractors achieve 5 Star rating & 4
Slide 30: 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 No Net Loss for Biodiversity Mr. Sunil Goyal Independ
Slide 31: Sustainability: Targets and Strategy
Sustainability: Targets and Strategy SD Targets FY20 FY30 Improvement Strategic Initiatives and Approach Actuals Targets Increased share of renewable energy for deep decarbonization Climate GHG Emissions Process efficiency improvements 0.76 0.215 * 60% Change tCO2e/ MWh Replacement of conden
Slide 32: Engaging Leading Knowledge Partners
Engaging Leading Knowledge Partners Current Status • Studies to identify climate change related physical and transition risks, opportunities and financial impacts • Pre Final Report is under preparation and is expected • Evaluation based on Governance, Strategy, and Risk Management to be completed i
Slide 33: Sustainability: Q1 FY24 Performance
Sustainability: Q1 FY24 Performance Key Highlights Performance • Increased share of renewable energy for deep decarbonisation Ash Utilisation (%) Climate Change • Wind Projects – Part CoD received and generation started on ~130 MW capacity 100% 100% 100% 100% • Continuous focus on process improvemen
Slide 34: Sustainability: Empowering Our Communities
Sustainability: Empowering Our Communities Sholtu, Shikhar Initiative JSW Energy Q1 FY24 Results Presentation 34
Slide 35: Sustainability: Empowering Our Communities
Sustainability: Empowering Our Communities Key Intervention Areas Women’s BPO and Livelihoods Health & Women’s BPO & Nutrition Livelihoods JSW Shakti’s women’s-only rural BPO in Ratnagiri. Currently, 50 women have secured livelihoods at the centre. Water & Environment Art, Culture & Heritage Waste S
Slide 36: Sustainability: Recognition of Global Best Practices
Sustainability: Recognition of Global Best Practices JSW Energy (Barmer) received the “2nd CEE National Environment Five Star OH&S Audit Award Excellence Award 2023 in received by Vijayanagar Plant Exceptional performance and from British Safety Council outstanding achievement in Environment Excelle
Slide 37: Investor Relations Contact
Investor Relations Contact: ir.jswenergy@jsw.in ESG Data Profile: Link Vijayanagar TPP 37
Slide 38: Business Environment
Business Environment Mytrah Wind Farm (Maniyachi, Tamilnadu)
Slide 39: 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 o Real GDP growth for Mar-23 quarter stood at 6.1% YoY. 5.4 6.3 6.1 4.1 4.4 3.2 2.8 0.7 2.5 o PMI: Manufacturing (Jun-23: 57.8) and Services (Jun- 23: 58.5)
Slide 40: Power Demand increased by 1% in Q1 FY24
Power Demand increased by 1% in Q1 FY24 Power Demand in BUs Power Demand Growth (% YoY) 145 40% 135 30% • Pan India demand during Q1 FY24 was at 125 20% 409 BUs increased by 1.0% YoY as 115 10% unseasonal rains so far in FY 2024 affected 105 0% 95 -10% the power consumption in the country Apr May Ju
Slide 41: Overall Generation increased by 1% in Q1 FY24
Overall Generation increased by 1% in Q1 FY24 Power Generation Growth (% YoY) Thermal PLFs 30% 80% 20% 70% • Overall generation during Q1 FY24 at 436 10% 60% BUs increased by 1.0 % YoY in tandem 0% with the demand decline -10% 50% Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug S
Slide 42: India's installed capacity stands at 422 GW as on Jun-23
India’s installed capacity stands at 422 GW as on Jun-23 Sector-wise Installed Capacity Segment-wise Installed Capacity Renewable Capacity Breakdown 129.6 2% 15.8 11% 24.0% 25.1% Thermal State 43.8 Other RES Nuclear 421.9 GW 31% Wind Private Hydro 421.9 GW Solar 56% Renewables 70.1 Central 50.9% Ove
Slide 43: Merchant Power – Day Ahead Market
Merchant Power – Day Ahead Market Monthly Average Merchant Tariff Linear Trend - Monthly Avg Price (₹/unit) (₹/kwh) 12.0 11.0 10.0 9.0 8.0 • Day Ahead Market (DAM) prices averaged 7.0 6.0 at ₹5.1/unit during Q1 FY24 and were 5.0 4.0 down 34% YoY due to reduction in 3.0 2.0 1.0 variable costs Oct Jan
Slide 44: Appendix
Appendix Mytrah Solar Plant (Hungund, Karnataka)
Slide 45: JSW Energy Company Overview – Broad Structure
JSW Energy Company Overview – Broad Structure Ratnagiri – 1,200 MW Vijayanagar – 860 MW JSW Energy Limited Nandyal – 18 MW Hydro Entities Solar – 10MW 9,780 MW Solar/Wind Entities JSWEBL – 1,080 Products & Services Ind-Barath- 700 Total – 3,868 MW JSW Neo Energy * 5,912 MW Energy Generation Portfoli
Slide 46: Entity-wise Financial Results
Entity-wise Financial Results Entity-wise Revenue from Operations Particulars in ₹ Crore Q1 FY24 Q1 FY23 Standalone 1,485 1,997 JSW Energy (Barmer) 640 618 JSW Hydro Energy 298 357 Mytrah RE Assets * 418 - JSW Renewable Energy (Vijayanagar) 50 33 JPTL 17 17 Consolidated** 2,928 3,026 Entity-wise EBI
Slide 47: Operational Performance – Net Generation
Operational Performance – Net Generation Net Generation Capacity Q1 FY24 Q1 FY23 Change YoY Location % % LT 89% 1,663 1,205 38% Ratnagiri (1,200 MW) Total 100% 1,939 1,518 28% Barmer (1,080 MW) LT 100% 1,418 1,554 -9% LT 36% 530 546 -3% Vijayanagar (860 MW) Total 100% 1,074 1,100 -2% Nandyal (18 MW)
Slide 48: Operational Performance – PLF
Operational Performance – PLF PLF/CUF Capacity Q1 FY24 Q1 FY23 Location % % % LT 89% 77 (*99) 56 (*70) Ratnagiri (1,200 MW) Total 100% 81 (*100) 63 (*76) Barmer (1,080 MW) LT 100% 67 (*71) 73 (*75) LT 36% 85 (*87) 89 (*89) Vijayanagar (860 MW) Total 100% 62 (*63) 63 (*64) Nandyal (18 MW) LT 100% 28
Slide 49: Cash Returns on Adjusted Net Worth
Cash Returns on Adjusted Net Worth ₹ Cr (Unless mentioned otherwise) Quarter ended Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Reported PAT 339 324 864 560 466 180 272 290 Add: Depreciation 284 281 277 289 294 295 291 398 Add/(less): Deferred Taxes 32 26 (7) 84 42 14 24 55 (Less): Divide
Slide 50: JSW Neo Energy Ltd
JSW Neo Energy Ltd The Green Energy Platform of JSW Energy 5.9 GW of installed capacity by CY 24 Current Generation Capacity (3,509 MW) 1,461 MW 657 MW 1,391 MW Under Construction Generation Capacity (2,403 MW) 2,163 MW 240 MW Energy Products and Services 3,800 TPD 2,400 MWh 1,000 MWh JSW Mytrah Ene
Slide 51: Developed a Pan India Footprint of Diverse Asset Base
Developed a Pan India Footprint of Diverse Asset Base Operational Capacity by CY 24 (5,912 MW) Punjab Himachal Pradesh 50 MW 1,631 MW Wind Hydro Rajasthan Madhya Pradesh Solar BESS 1,000 30 MW 258 MW MWh Green H2 PSP Gujarat 78 MW Telangana Maharashtra 101 MW Andhra Pradesh 447 MW 365 MW 327 MW 10 M
Slide 52: JSW Neo – Capacity growth
JSW Neo – Capacity growth Capacity to grow at a CAGR of 42% 5,912 300 240 733 810 320 3,509 42% CAGR Current SECI - X SECI- IX Group Kutehr SECI XII Operational Operational Captive by CY24 Wind Mytrah Solar Plant (Hungund, Karnataka) JSW Energy Q1 FY24 Results Presentation 52
Slide 53: JSW NEO – PPA Profile
JSW NEO – PPA Profile JSW Neo – Total Capacity (MW) JSW Neo –PPA Profile Solar, 657 Haryana, 4% Rajasthan, 4% Open Capacity, 2% Himachal Pradesh, 5% SECI, 31% 98% assets tied up under LT PPA (91 MW at Karcham Wangtoo HEP) Andhra Pradesh, 6% 100% under construction assets tied 5,912 MW Telangana, 7%
Slide 54: Mytrah Progress on Track
Mytrah Progress on Track Mytrah Asset Optimisation & Performance Improvement progressing well JSW Energy Mytrah Wind Q1 FY24Maharashtra) (Chakla Results Presentation 54
Slide 55: Mytrah Progress on Track
Mytrah Progress on Track Mytrah EBITDA (₹ cr) Normalised EBITDA 1,650 >1,450 1,187 400 * FY 2023 FY 2024 FY 2025 Q1 Mytrah Net Debt/EBITDA Pre-Acquisition FY 23 FY24 Normalised ₹1,187 Cr > ₹ 1,450 Cr ₹1,650 Cr ₹1,237 Cr EBITDA 7.2x 5.7x 5.0x ND/EBITDA 7.7x JSW Energy Mytrah Wind SiteQ1 FY24 (Nidhi R
Slide 56: Mytrah Wind Assets (1,331 MW)
Mytrah Wind Assets (1,331 MW) Asset Optimisation & Performance Improvement Plan underway Restoration of WTGs WIND 168 WTGs out of 178 have been restored since acquisition Remaining 10 WTGS to be restored in July -23 Action Plan Machine availability • Restoration of WTGs WTGs restoration and spare av
Slide 57: Mytrah Wind - progress on track
Mytrah Wind - progress on track Machine Availability Actual Generation vs Wind Speed +680 bps 94% 6.0 5.6 88% Targeting >98% machine availability 720 695 Q1 FY23 Q1 FY24 Q1 FY23 Q1 FY24 Actual Generation (MUs) Wind Speed (m/s) Generation (MUs) Wind CUF 26.4% 59 2 9 5 24.5% 720 695 -190bps 85 66 MUs
Slide 58: Mytrah Solar Assets (422 MW)
Mytrah Solar Assets (422 MW) Asset Optimisation & Performance Improvement Plan underway Operations & Maintenance SOLAR O&M SOP implemented and monitored on regular basis Action Plan Spares are proactively planned and spares backup created accordingly • Improved Performance Ratio (PR) to O&M and Perf
Slide 59: Mytrah Solar - progress on track
Mytrah Solar - progress on track P-90 vs Actual Generation (MUs) Generation (MUs) 216 Q1 FY24 11 216 193 8 198 8 MUs increased due to P-90 Generation Actual Generation focused interventions Q1 FY23 Performance GII Gain Q1 FY24 Plant Availability Ratio gain Solar CUF +70 bps 99.1% 23.5% 98.4% 21.5% +
Slide 60: Receivables Cycle Improving
Receivables Cycle Improving Strong collection in Mytrah Portfolio’s Receivables underway Particulars in ₹ Cr 30% YoY improvement * Excluding unbilled revenue ** Increased on account of higher revenue during wind season Monthly Collection consistently above the billing 205% JSW’s strong collection 15
Slide 61: Under Construction Projects
Under Construction Projects Mytrah Solar Plant (Hungund, Karnataka) JSW Energy Q1 FY24 Results Presentation 61
Slide 62: Ind-Barath 700 MW – Revival On Track – Commissioning in FY24
Ind-Barath 700 MW – Revival On Track – Commissioning in FY24 Mechanical - Turbine Electrical Works Regulatory Approvals • Turbine HIP & LP Rotor installed on the • Transmission tower • Environment Clearance – Consent casing and alignment completed foundation work in progress to operate Unit 1 receiv
Slide 63: Wind Power Projects – 2.2 GW
Wind Power Projects – 2.2 GW Wind Projects (SECI IX,X, XII and Group Captive) 130 MW commissioned by end of Q1 FY24, currently ~150 MW commisioned Expected commissioning by CY 2024 JSW Energy Q1 FY24 Results Presentation 63
Slide 64: Kutehr Hydro Power Plant – 240 MW
Kutehr Hydro Power Plant – 240 MW Tunneling & Concreting Electro-mechanical works Concreting Barrage Completed ~ 95.9% (20.3 km) • Spiral Case erection work for Unit- • Completed ~73.50 % of Concreting tunneling work (up from ~ 92.45 % in 2 completed and for Unit 1 & 3 is of Barrage Q4) in progres
Slide 65: Cash PAT Bridge
Cash PAT Bridge YoY Movement (₹ Cr) Non-Operational To be recouped * PAT to Operational Cash PAT Q1 FY24 (₹ Cr) 792 398 55 Non-Operational 29 339 290 20 Reported PAT Ind- Barath One-time PAT from Operational Depreciation Deferred Taxes Operational Cash PAT refinancing Assets impact JSW Energy Q1 FY2