Jsw Energy Limited · NSE:JSWENERGY
Jsw Energy — Q2 FY23 Earnings Presentation
46 slides from Jsw Energy's earnings presentation, Oct 28, 2022
Slide 1: Q2 FY23 Results Presentation
Q2 FY23 Results Presentation October 28, 2022
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 Strategic Highlights Q2 FY23 Highlights Sustainability Update on Growth Projects Operational & Financial Performance Business Environment Appendix JSW Energy Q2 FY23 Results Presentation 3
Slide 4: Strategic Highlights
Strategic Highlights Scaling towards 20 GW installed capacity by 2030 Transitioning towards Energy Products and Services Operational Under-Construction Pipeline * Acquisition** Energy Storage Hydro Pumped Storage (PSP) - Targeting 10 GW Resources tied-up for ~6 GW PSP with various 9.9 states 20.0
Slide 5: Q2 FY23 Highlights (1/2)
Q2 FY23 Highlights (1/2) • Net Renewable Generation: up 3% YoY driven by contribution from solar power plant at Vijayanagar Operational • Net Long Term Generation: 6.5 billion units (BUs) lower by 1% YoY – maintenance shutdown at Ratnagiri Performance partly offset by higher offtake from captive cus
Slide 6: Q2 FY23 Highlights (2/2)
Q2 FY23 Highlights (2/2) Under • 1.26 GW SECI IX & X Wind projects: Phase-wise commissioning from Q3 FY23 Construction • 240 MW Kutehr HEP: Project well ahead of timelines with ~84% tunneling completed (up from 75% in Q1 Projects FY23) • Battery Energy Storage Solutions: Participated in SECI bid for
Slide 7: Sustainability
Sustainability
Slide 8: Continuing our Health & Safety Excellence Journey
Continuing our Health & Safety Excellence Journey Awards & Zero severe injuries/fatalities (Q2 FY23 & YTD) Recognitions 89% of contractors covered by JSW CARES audit 9 Contractors achieve 5 Star rating & 3 contractors achieve 4 Star in a stringent Internal Safety Assessment 43,000+ Cumulative Safety
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 Indep
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: Q2 FY23 Performance
Sustainability: Q2 FY23 Performance Key Highlights Performance • Increased share of renewable energy for deep decarbonization Ash Utilisation (%) Climate • Solar 225 MW project at Vijayanagar: Generation started resulting in low GHG, Change CO2, SOx and NOx emissions 100% 100% 100% 100% • Biomass fe
Slide 12: Sustainability: Initiatives and Disclosures
Sustainability: Initiatives and Disclosures Plantation drives spanning across Ratnagiri, Green Belt & Plantation near Watershed Development at Barmer Vijayanagar & Hydro Power Plants Barmer Power Plant Comprehensive ESG Data profile with ~300 factors across 15 sustainability frameworks JSW Energy JS
Slide 13: Sustainability: Empowering Our Communities
Sustainability: Empowering Our Communities Sports Promotion & Development Health & Nutrition Project Shikhar: Organised inter– Strengthening public health Shikhar boxing championship with a infrastructure by supporting a participation of 60 boxers. Government hospital in Barmer. Participation
Slide 14: Update on Growth Projects
Update on Growth Projects
Slide 15: Update on Growth Projects
Update on Growth Projects Green portfolio driving capacity growth Division of locked-in capacity (9,896) MW 39.0% 48.3% Installed (MW) Locked In Growth (MW) Installed Thermal 2,293 235 1,331 36.6% 1,391 4,784 9,896 3,158 Wind 422 Under- 3,158 22.6% construction 1,757 700 17.8% Ind-Barath Hydro Hydro
Slide 16: Update on Under Construction Projects (1/3)
Update on Under Construction Projects (1/3) 2.2 GW Renewable Projects Under Construction Portfolio Capacity Scheduled Target Plant Segment Location PPA/Offtaker (MW) Commissioning Commissioning SECI - IX 810 Wind Tamil Nadu 25-Year; SECI Dec-23 progressively from SECI - X 450 Wind Tamil Nadu 25-Year
Slide 17: Update on Under Construction Projects (2/3)
Update on Under Construction Projects (2/3) SECI-IX & X Wind, Tamil Nadu (1,260 MW) Nacelle and WTG erection JSW Energy Q2 FY23 Results Presentation 17
Slide 18: Update on Under Construction Projects (3/3)
Update on Under Construction Projects (3/3) Kutehr HEP, Himachal Pradesh (240MW) Steel Cantilever Bridge HRT Gantry Concrete Lining Kutehr HEP Completed ~84% (17.7 km) tunneling work (up from ~75% in Q1) well ahead of timelines JSW Energy Q2 FY23 Results Presentation 18
Slide 19: Operational & Financial Performance
Operational & Financial Performance
Slide 20: Consolidated Performance
Consolidated Performance Net Generation (MUs) Total Revenue* (₹ Crore) +39% Operational Highlights Q2 FY23 11,927 12,525 5,712 6,786 6,675 • Renewable net generation up 3% YoY. Short +16% 4,097 o Incremental contribution from solar plant at (97%) (91%) Term FY22 (97%) (97%) 2,596 Vijayanagar. 11,544
Slide 21: Thermal Assets | Q2 FY23 highlights (1/2)
Thermal Assets| Q2 FY23 highlights (1/2) Ratnagiri Barmer Vijayanagar 1,200 1,080 860 Installed Capacity MW MW MW LT 1,147 Mus (+9% YoY*) 1,651 MUs (-3% YoY) 620 MUs (+21% YoY) Net Generation (Mus) 100% 1,311 MUs (-13% YoY) 1,651 MUs (-3% YoY) 736 MUs (+13% YoY) LT 60%/(81%) 77%/(81%) 100%/(100%) PL
Slide 22: Thermal Assets | Q2 FY23 highlights (2/2)
Thermal Assets| Q2 FY23 highlights (2/2) Net Generation (MUs) Thermal : PLF – long term • Net LT Generation in Q2 FY23 lower by 3% 86% 83% 85% 3,888 7,632 7,879 74% 79% YoY. 3,698 73% 72% 70% o Lower LT generation at Ratnagiri Short Term and Nandyal, partly offset by (95%) (97%) (96%) (87%) 3,700 3,
Slide 23: Strategic Shift Towards Green Portfolio
Strategic Shift Towards Green Portfolio Operational Assets Under Construction/Acquisition & Pipeline Hydro Solar Hydro Wind Mytrah RE Capacity 1,391 MW 235 MW 366 MW 2,293 MW 1,753 MW % of total locked- in capacity 14% 2% 4% 23% 18% (9.9 GW) Total locked-in renewable capacity of 6,038 MW Green Portf
Slide 24: Green Assets | Hydro: Q2 FY23 highlights
Green Assets| Hydro: Q2 FY23 highlights Net Generation (MUs) Hydro : PAF and PLF 4,289 4,472 2,895 2,900 110% 107% 110% 108% 99% 98% 75% 76% Short (99%) (98%) Term (98%), (98%), 4,241 4,396 2,848 2,832 Long Term • Hydro PLF at 98% in Q2 FY23; Net Generation stable YoY. Q2 FY22 Q2 FY23 H1 FY22 H1 FY2
Slide 25: Consolidated Financial Results
Consolidated Financial Results H1 FY23 H1 FY22 Particulars in ₹ Crore Q2 FY23 Q2 FY22 5,712 4,097 Total Revenue 2,596 2,237 2,209 1910 EBITDA 1,098 1080 39% 47% EBITDA Margin(%) 42% 48% 398 481 Finance Cost 204 191 583 573 Depreciation 294 284 1,349 856 Profit Before Tax 600 604 1,026 540 Profit Aft
Slide 26: EBITDA Bridge
EBITDA Bridge Particulars in ₹ Crore Long Term PPAs and superior O&M ensuring steady EBITDA JSW Energy Q2 FY23 Results Presentation * Contribution from solar power plant at Vijayanagar 26
Slide 27: Net Debt Movement
Net Debt Movement Particulars in ₹ Crore Increase in Net Debt led by Ongoing Growth Capex JSW Energy Q2 FY23 Results Presentation * Includes unencumbered bank balances, FDs, and liquid mutual funds. 27
Slide 28: 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 29: Superior Financial Risk Profile
Superior Financial Risk Profile Net Debt (₹ Crore) Net Worth (₹ Crore)* and Cash Returns (%) 7,720 7,874 6,963 15,939 15,789 16,082 17,415 16,638 21% 17,593 6,565 6,509 21% 6,021 19% 18% 17% 17% 11,529 11,475 11,830 12,688 12,952 13,491 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Jun-21 Sep-21 Dec-21
Slide 30: Healthy Trade Receivables
Healthy Trade Receivables Consolidated Trade Receivables* (₹ Crore ) • Receivables days decline to 66 days at Sep’22 from 81 days at Sep’21. o Receivables (in ₹ Crore) increase QoQ due to seasonality in 1,769 1,769 hydro business. 1,648 • All plants placed favourably in States’ Merit Order Dispatch.
Slide 31: Investor Relations Contact
Investor Relations Contact: ir.jswenergy@jsw.in ESG Data Profile: Link 31
Slide 32: Business Environment
Business Environment
Slide 33: Indian Economy
Indian Economy Real GDP Growth (%) • High-frequency economic data indicates India’s resilient economic 20.1 activity in midst of slowing global economic activity. 13.5 8.4 As per the International Monetary Fund projections, 4.2 3.2 2.8 2.5 5.4 4.1 0.7 India has become world’s fifth largest economy
Slide 34: Power Demand grew 12% YoY in H1 FY23
Power Demand grew 12% YoY in H1 FY23 Power Demand in BUs Power Demand Growth YoY • The total demand recorded in H1 FY23 was 791 140 40% BUs up 12% YoY. 30% 120 • On a quarterly basis India witnessed a demand 20% of 386 BUs in Q2 FY23 vs 366 BUs in Q2 FY22 100 10% up 6% YoY. 80 0% • Total demand met
Slide 35: Renewables share in overall generation increased to 13% in H1 FY23
Renewables share in overall generation increased to 13% in H1 FY23 Power Generation growth (%YoY) Thermal PLFs 85 40% • In H1 FY23 the overall generation 30% 75 increased 11% YoY led by growth in 20% 65 60.5 renewable generation (excluding hydro) 10% +11.0% 55 which grew by 17% YoY. 0% • Thermal and
Slide 36: India's installed capacity stands at 408 GW as on Sep'22
India’s installed capacity stands at 408 GW as on Sep’22 Sector-wise Installed Capacity Segment-wise Installed Capacity Renewable Capacity Breakdown 2% 118.1 11% Solar 24% 26% Thermal 15.6 State Nuclear 41.7 Wind 408 GW Hydro 29% Private 408 GW Other Renewable 58% 60.8 RES Central 50% Overall segmen
Slide 37: Merchant Power – Day Ahead Market
Merchant Power – Day Ahead Market YoY Trend: Monthly Average DAM Tariff Linear Trend - Monthly Avg Price (Rs/kwh) (Rs/unit) 11.00 12 Q2 FY23 9.00 10 • Day Ahead Market (DAM) prices 7.00 8 were up 31% YoY as the average 5.63 5.00 tariff recorded for the period was ₹ 6 3.00 5.40/KWh vs ₹4.14/KWh in th
Slide 38: Appendix
Appendix
Slide 39: Entity-wise Financial Results
Entity-wise Financial Results Entity-wise Revenue from Operations Particulars in ₹ Crore Q2 FY23 Q2 FY22 H1 FY23 H1 FY22 Standalone 1,141 802 3,138 1,560 JSW Energy (Barmer) 665 665 1,283 1,302 JSW Hydro Energy 539 514 896 805 JPTL 17 18 34 36 Consolidated* 2,387 2,087 5,414 3,815 Entity-wise EBITDA
Slide 40: Operational Performance – Net Generation
Operational Performance – Net Generation Net Generation Capacity Q2 FY23 Q2 FY22 Change YoY H1 FY23 H1 FY22 Change YoY Location % % % LT 89% 1,302 1,465 -11% 2,507 2,847 -12% Ratnagiri (1,200 MW) Total 100% 1,311 1,514 -13% 2,828 2,924 -3% Barmer (1,080 MW) LT 100% 1,651 1,696 -3% 3,205 3,269 -2% LT
Slide 41: Operational Performance – PLF
Operational Performance – PLF PLF Capacity Q2 FY23 Q2 FY22 H1 FY23 H1 FY22 Location % % % % % LT 89% 60 (*81) 66 (*88) 58 (*76) 66 (*87) Ratnagiri (1,200 MW) Total 100% 54 (*73) 62 (*83) 59 (*74) 61(*79) Barmer (1,080 MW) LT 100% 77 (*81) 78 (*83) 75 (*78) 76 (*81) LT 35% 100 (*100) 84 (*86) 95 (*95
Slide 42: Cash Returns on Adjusted Net Worth
Cash Returns on Adjusted Net Worth ₹ Crore (Unless mentioned otherwise) Quarter ended Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Reported PAT 124 107 201 339 324 864 560 466 Add: Depreciation 292 294 288 284 281 277 289 294 Add/(less): Deferred Taxes 17 27 21 32 26 (7) 84 42 (Less): Div
Slide 43: Update on Mytrah Acquisition
Update on Mytrah Acquisition 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 6.4x on
Slide 44: Ind-Barath Acquisition Timeline
Ind-Barath Acquisition Timeline July, 2022 • Approval received Oct, 2019 from NCLT for the Resolution Plan • Subsequent to Sep, 2019 under the negotiation with corporate CoC Revised • Earlier Process insolvency Resolution Plan May, 2019 annulled & JSWEL submitted resolution process submitted of the
Slide 45: 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 46: 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