Jsw Energy Limited · NSE:JSWENERGY
Jsw Energy — Q2 FY22 Earnings Presentation
40 slides from Jsw Energy's earnings presentation, Oct 29, 2021
Slide 1: Q2 FY22 Results Presentation
Q2 FY22 Results Presentation October 29 2021
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: Key Highlights for Q2 FY22 (1/2)
Key Highlights for Q2 FY22 (1/2) • Overall Net Generation: increased by 2% YoY • Total Thermal Generation: higher by 4% YoY Operational • Commenced operations from 45 MW uprated capacity at Karcham Wangtoo HEP in July’21. Operational capacity of the plant increased from 1,000 MW to 1,045 MW • EBITDA
Slide 4: Key Highlights for Q2 FY22 (2/2)
Key Highlights for Q2 FY22 (2/2) • Renewable-led growth to reach 10 GW capacity by FY25 and 20 GW by FY30 • 2.5 GW under-construction in full-swing: o 810 MW - SECI IX: LT PPA signed with SECI Update on o 450 MW - SECI X: LT PPA signed with SECI Growth Strategy o 958 MW Group Captive with JSW Steel:
Slide 5: Agenda
Agenda Sustainability Update on Growth Projects Operational & Financial Performance Growth Strategy Business Environment Appendix JSW Energy Q2 FY22 Results Presentation 5
Slide 6: Agenda
Agenda Sustainability Update on Growth Projects Operational & Financial Performance Growth Strategy Business Environment Appendix JSW Energy Q2 FY22 Results Presentation 6
Slide 7: Sustainability: Framework and Priorities
Sustainability: Framework and Priorities 17 Focus Areas with 2030 Targets from 2020 as Base Year Governance & Oversight by Sustainability Committee Climate Change: Biodiversity: No Net Loss for Biodiversity Committed to being carbon neutral by 2050 Mr. Sunil Goyal 2 Independent Reduce our carbon emi
Slide 8: Sustainability: Targets and Strategy
Sustainability: Targets and Strategy SD Targets FY20 Actuals FY30 Targets Improvement Strategic Approach • Increased share of renewable energy for deep decarbonization Climate • GHG Emissions 0.76 0.304 • Process efficiency improvements Change 60% tCO2e/ MWh • Replacement of condenser tubes with gra
Slide 9: ESG Performance amongst the best in the sector
ESG Performance amongst the best in the sector Board & Governance Air Emissions Water & Waste Management % Board Independent CO2 Intensity (t CO2e/MWh) Specific Fresh Water Consumption (m3/MWh) 67 0.84 56 50 50 50 0.68 0.69 3.3 44 40 2.9 0.36 1.21 JSW Peer 2 Peer 1 Peer 4 Peer 5 Peer 6 Peer 3 Peer 2
Slide 10: Empowering Our Communities
Empowering Our Communities Empowering communities with sustainable livelihoods Regular water supply through water pipelines & hand Scaling Community Orchards, Integrated & Progressive Working with 500+ women across 16+ Gram Panchayats for pumps in Barmer, Rajasthan Farming, Vegetable Production, Dai
Slide 11: Continuing our Health & Safety Excellence Journey
Continuing our Health & Safety Excellence Journey Figures are for Q2 FY21 Zero Severe/Major Injuries 70% of all contractors covered by JSW CARES assessment 40,000+ Cumulative Safety Observations INFLUENCING POSITIVE SAFETY BEHAVIOR OF OUR WORKFORCE Fire Safety refresher training completed at all loc
Slide 12: Agenda
Agenda Sustainability Update on Growth Projects Operational & Financial Performance Growth Strategy Business Environment Appendix JSW Energy Q2 FY22 Results Presentation 12
Slide 13: JSW Energy: Growth Roadmap to 20 GW
JSW Energy: Growth Roadmap to 20 GW Renewables-led growth to 20 GW by 2030 In GW 20 Thermal New Growth Platforms Renewable - • Green Hydrogen Hydro • Hydro Pumped Storage Renewable - Wind 15.5 • Battery Energy Storage & Solar 10 5.5 4.6 1.4 1.6 1.6 3.2 3.2 3.2 FY21 FY25e FY30e Thermal 16% Renewable
Slide 14: Renewable Energy Projects
Renewable Energy Projects 2.5 GW Under-construction Projects SECI: Wind Projects Tamil Nadu: 1,260 MW Blended tariff `3.08/unit (excl. hydro) SECI IX (810 MW) + SECI X (450 MW) •Total : ~`16,660 Crore Signed 25-year PPA with SECI Capex •Spent: ~`1,250 Crore Commissioning: progressively from Q1
Slide 15: 225 MW Solar Plant Under-construction in Karnataka
225 MW Solar Plant Under-construction in Karnataka Group Captive: 225 MW Solar Power Plant Under-construction in Karnataka Targeted Commissioning from Q4 FY22 JSW Energy Q2 FY22 Results Presentation 15
Slide 16: 1.26 GW Wind SECI IX & X Under-construction in Tamil Nadu
1.26 GW Wind SECI IX & X Under-construction in Tamil Nadu Construction commenced for dedicated transmission lines and sub-station Targeted Commissioning from Q1 FY23 JSW Energy Q2 FY22 Results Presentation 16
Slide 17: 240 MW Kutehr HEP Under-construction in Himachal Pradesh
240 MW Kutehr HEP Under-construction in Himachal Pradesh Completed 10 km tunneling, achieving half the distance ahead of timelines Targeted Commissioning by Sept 2024 JSW Energy Q2 FY22 Results Presentation 17
Slide 18: Agenda
Agenda Sustainability Update on Growth Projects Operational & Financial Performance Growth Strategy Business Environment Appendix JSW Energy Q2 FY22 Results Presentation 18
Slide 19: Operational Performance – Q2 FY22
Operational Performance – Q2 FY22 Net Generation (MU) Hydro: PAF and PLF -1% • High Hydro PAF maintained YoY 110% 110% Q2 FY21 Renewable 2,915 2,898 102% 99% 1391 MW Hydro* Short Term Q2 FY22 • Renewable Net Generation lower by 1% YoY 9 MW Solar 2,915 2,851 Long Term o Lower water flow at hydro plan
Slide 20: Operational Performance – H1 FY22
Operational Performance – H1 FY22 Net Generation (MU) Hydro: PAF and PLF 4,550 - 6% H1 FY21 • Hydro PAF higher YoY 4,296 106% 110% Renewable 80% 75% 1391 MW Hydro* Short Term H1 FY22 • Renewable Net Generation lower by 6% YoY 9 MW Solar 4,550 4,249 Long Term o Lower water flow at hydro plants H1 FY2
Slide 21: Consolidated Financial Performance
Consolidated Financial Performance Total Revenue1 (` Crore) EBITDA (` Crore) and EBITDA Margins 5% 5% 4,097 1,910 3,886 1,812 12% 10% 2,237 FY21 985 1,080 FY21 • Q2 Total Revenue and EBITDA 2,000 FY22 FY22 increase mainly attributable to higher 47% 47% contribution from short term sales and higher o
Slide 22: EBITDA Bridge
EBITDA Bridge Particulars in ` Crore Q2 H1 Steady EBITDA generation JSW Energy Q2 FY22 Results Presentation 22
Slide 23: Robust Balance Sheet
Robust Balance Sheet Figures in ` Crore As on Sep 30, 2021 • Amongst the strongest balance sheets in the sector - Well positioned to pursue growth opportunities Networth 15,789 • Strong Liquidity with healthy cash balances1: `1,777 Crore Net Debt 6,509 Net Debt/EBITDA 2.01 • Financial flexibility en
Slide 24: Net Debt Movement
Net Debt Movement Particulars in ` Crore Large balance sheet headroom available to embark on growth projects JSW Energy Q2 FY22 Results Presentation * Includes unencumbered bank balances, FDs, and liquid mutual funds 24
Slide 25: Balance Sheet
Balance Sheet Net Debt (` Crore) Net Worth (` Crore) 8,493 7,671 15,939 15,789 13,900 14,507 6,719 6,565 6,509 13,037 6,206 12,202 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Leverage Ratios Wt. Average Cost of Debt Net Debt/Equity Net Debt/TTM EBITDA 8.44% 2.
Slide 26: Trade Receivables
Trade Receivables • Receivables decline 19% YoY in Q2 FY22 • Q2 FY21 was impacted by Covid related delays Consolidated Trade Receivables* (` Crore ) from customers • All plants placed favourably in States’ Merit Order 4000 Dispatch 3500 o Further, Hydro plants under ‘Must-run status’ with 3000 no sc
Slide 27: Agenda
Agenda Sustainability Update on Growth Projects Operational & Financial Performance Growth Strategy Business Environment Appendix JSW Energy Q2 FY22 Results Presentation 27
Slide 28: Indian Economy
Indian Economy Real GDP Growth 30.00% • RBI’s MPC kept repo rate unchanged at 4.0%, with an 20.1% accommodative stance in its Oct’21 meeting 15.00% 5.4% 4.6% 3.3% 3.0% 0.5% 1.6% • Real GDP growth at 20.1% in Q1 FY22 ; FY22 growth 0.00% projection retained at 9.5% -7.4% -15.00% • Signs of economic re
Slide 29: Power Demand
Power Demand • Power demand in H1 FY22 saw a strong increase of 13.0% YoY Power Demand Growth YoY +38.2% • A strong pickup in economic activity coupled with +40.0% a low base effect. +30.0% +22.0% • In H1 FY21 demand had declined by 8.7% YoY +17.4% when Covid-19 led restrictions/lockdowns were +20.0
Slide 30: Power Generation
Power Generation Power Generation Growth YoY Segment-wise Share in Generation Total +38.5% Generation 1,376 1,389 1,382 678 764 +40.0% (BU) 3.1% 3.8% 3.7% 4.3% 3.6% +30.0% +22.5% 9.2% 10.0% 10.6% 12.1% 11.6% +20.0% +16.0% 9.8% +11.1% +11.2% +5.5% 11.2% 10.9% 12.2% +7.5% +8.2% 14.3% +10.0% +3.5% +5.1
Slide 31: Installed Capacity (1/2)
Installed Capacity (1/2) Sector-wise Installed Capacity Segment-wise Installed Capacity 101.5 GW Central, State, 103.7 GW +4,577 MW* RE, 97.6 GW 26.7% 26.1% 25.1% -163 MW* +800 MW* 388.8 GW 388.8 GW 46.5 GW Thermal 234.0 GW Hydro, +190 MW* , 60.2% -670 MW* 12.0% Private, 48.2% Nuclear, 1.8% 6.8 GW 1
Slide 32: Installed Capacity (2/2)
Installed Capacity (2/2) Overall Segment-wise Net Capacity Addition (GW) RE Segment-wise Net Capacity Addition (GW) 14.0 12.1 0.3 9.4 12.0 8.6 0.1 0.5 0.9 0.5 7.4 7.1 1.6 2.1 0.4 9.4 6.7 0.3 7.4 1.6 0.6 8.6 0.3 2.9 7.1 4.3 4.1 6.5 6.4 2.2 6.2 5.5 3.4 2.2 0.7 0.1 (0.7) 0.5 FY19 FY20 FY21 H1 FY21 H1 F
Slide 33: Merchant Market Snapshot
Merchant Market Snapshot Monthly Average Merchant Tariff (Rs/unit) 11.00 • Monthly Merchant Prices averaged at Rs 8.7/unit in 10.00 October’211 – Highest in the last decade 9.00 8.00 • Primarily driven by high demand, constraints in domestic 7.00 coal supply and rise in imported coal prices globally
Slide 34: Agenda
Agenda Sustainability Update on Growth Projects Operational & Financial Performance Growth Strategy Business Environment Appendix JSW Energy Q2 FY22 Results Presentation 34
Slide 35: Operational Performance – Net Generation
Operational Performance – Net Generation Net Generation Location Capacity Q2 FY22 Q2 FY21 Change H1 FY22 H2 FY21 Change YoY YoY % MUs MUs % MUs MUs % LT 92% 1,465 1,387 +6% 2,847 2,689 +6% Ratnagiri (1,200 MW) Total 100% 1,514 1,434 +6% 2,924 2,819 +4% Barmer (1,080 MW) LT 100% 1,696 1,719 (1%) 3,26
Slide 36: Operational Performance – PLF
Operational Performance – PLF PLF (*Deemed PLF) Location Capacity Q2 FY22 Q2 FY21 H1 FY22 H2 FY21 Remarks – Q2 FY22 LT 92% Impact of maintenance activities 66 (*88) 75 (*91) 66 (*87) 73 (*91) Ratnagiri (1,200 MW) partly offset by higher PPA tie-up Total 100% 62 (*83) 59 (*71) 61 (*79) 58 (*72) Barme
Slide 37: Consolidated Financial Results
Consolidated Financial Results H1 FY22 H1 FY21 Particulars in ` Crore Q2 FY22 Q2 FY21 4,097 3,886 Total Revenue1 2,237 2,000 1,910 1,812 EBITDA 1,080 985 47% 47% EBITDA Margin(%) 48% 49% 481 448 Finance Cost 191 207 342 448 Interest Cost 167 207 139 - Exceptional2 24 - 573 581 Depreciation 284 292 8
Slide 38: Entity-wise Financial Results
Entity-wise Financial Results Entity-wise Revenue from Operations H1 FY22 H1 FY21 Particulars in ` Crore Q2 FY22 Q2 FY21 1,560 1,476 Standalone1 802 672 1,302 1,358 JSW Energy (Barmer) 665 709 805 873 JSW Hydro Energy 514 539 36 35 JPTL 18 18 3,815 3,744 Consolidated* 2,087 1,939 Entity-wise EBITDA
Slide 39: Q2 FY22 Performance – JSW Hydro Energy Ltd
Q2 FY22 Performance – JSW Hydro Energy Ltd Generation (MU) Key Highlights : 2,935 2,913 2,918 2,895 Gross Generation Healthy Operational and Financial Performance Net Generation Receivable Days decline to 128 days at end of Sep’21 from Q2 FY21 Q2 FY22 164 at the end of Sep’20 • Q2 FY21 receivabl
Slide 40: Investor Relations Contact
JSW Relations Investor Steel Limited Contact: ir.jswenergy@jsw.in Investor presentation August, 2020