Jsw Energy Limited · NSE:JSWENERGY
Jsw Energy — Q2 FY24 Earnings Presentation
58 slides from Jsw Energy's earnings presentation, Oct 20, 2023
Slide 1: Q2 FY24 Results Presentation
Q2 FY24 Results Presentation October 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: Agenda
Agenda Q2 FY24 Highlights Operational & Financial Performance Segment Wise Performance Safety & Sustainability Business Environment Appendix JSW Energy Q2 FY24 Results Presentation Vijayanagar 225MW Solar Power Plant 3
Slide 4: Q2 FY24 Highlights (1/2)
Q2 FY24 Highlights (1/2) • Overall Net Generation: Up by 29% YoY at 8.6 BUs driven by strong merchant sales, organic RE capacity additions and contribution from acquired* RE portfolio • Net renewable generation is up by 47% YoY at 4.4 BUs and total thermal generation is up 15% at 4.3 BUs Operational
Slide 5: Q2 FY24 Highlights (2/2)
Q2 FY24 Highlights (2/2) Company reported highest ever quarterly EBITDA • EBITDA at ₹2,008 Cr and reported PAT of ₹850 Cr, both increased 83% YoY; Cash PAT stood at ₹1,180 Cr • On a sequential basis, EBITDA increased 54% while PAT increased 2 folds Consolidated • Receivables (excl. acquired RE portf
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 30% 12% • Overall Net Generation: Up by 29% YoY at 8.6 29% 22% 6,401 BUs driven by acquired RE portfolio and higher 15,336 3,387 5,712 8,638 thermal generation, partly offset by lower 6,675 12,525 2,596 FY23 ge
Slide 8: EBITDA Bridge
EBITDA Bridge Q2 FY24 Particulars in ₹ Cr New RE Leveraging Capacity Open Capacity H1 FY24 Particulars in ₹ Cr New RE Leveraging To be Capacity Open Capacity recouped * * Subjected to meeting design energy generation and plant availability for Hydro, and plant availability factor for Barmer (which h
Slide 9: Finance Cost & PAT Movement
Finance Cost & PAT Movement Finance Cost (YoY; ₹ Cr) Q1 FY24: ₹ 486 Cr Profit After Tax (YoY; ₹ Cr) JSW Energy Q2 FY24 Results Presentation 9
Slide 10: Consolidated Financial Results
Consolidated Financial Results H1 FY24 H1 FY23 Particulars in ₹ Crore Q2 FY24 Q2 FY23 6,401 5,712 Total Revenue 3,387 2,596 3,316 2,209 EBITDA 2,008 1,098 52% 39% EBITDA Margin(%) 59% 42% 807 583 Depreciation 409 294 999 398 Finance Cost 514 204 1,510 1,349 Profit Before Tax 1,086 600 1,140 1,026 Pr
Slide 11: Net Debt Movement
Net Debt Movement Particulars in ₹ Cr Leverage Net Debt (₹ Cr) EBITDA (TTM; ₹ Cr) ND/EBITDA (x) Capital Work- in-Progress (CWIP) 10,338 3,993 2.6x Operating Acquired RE Portfolio Acquired RE Portfolio (Normalised EBITDA) 8,072 1,650 4.9x Operational Projects Combined (Excl. CWIP) 18,410 5,643 3.3x 6
Slide 12: Project Progress
Project Progress Under Construction 3.0 GW, to be Commissioned by CY24 Group Captive MoUs Under-Construction Operational by CY2024 (MW) Generation 6.2 GW 300 9,792 733 240 810 Storage 2.7 GWh 700 238 6,771 1,000MWh BESS Progressively by 2030 4,559 Hydrogen 85-90 KTPA 17% 34% CAGR FY21 CAGR Current I
Slide 13: Superior Financial Risk Profile
Superior Financial Risk Profile Net Debt (₹ Cr) Net Worth (₹ Cr)* & Cash Returns (%) 22,904 24,260 22,180 16,638 21% 18,629 19,111 19,877 17,593 21% 18,392 20% 18% 20% 18% 9,840 7,720 7,874 12,952 13,491 13,446 14,177 14,061 14,859 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Jun-22 Sep-22 Dec-22 Mar-2
Slide 14: Healthy Trade Receivables
Healthy Trade Receivables Consolidated Trade Receivables* Excluding Operational Highlights Acquired RE Portfolio (₹ Cr ) • Receivables (in ₹ Cr) improved by 10% YoY o Receivables days (excl. Acquired RE Portfolio and Hydro 10% 1,769 true-up impact) further improved to 56 days in Q2 1,599 FY24 • All
Slide 15: Segment Wise Performance
Segment Wise Performance Vijaynagar Thermal Power Plant- Control Room
Slide 16: Thermal Assets | Q2 FY24 Highlights (1/2)
Thermal Assets| Q2 FY24 Highlights (1/2) Overview Offtaker Profile Operational Assets - 3,158* MW Under Construction Rajasthan , 28% Total Thermal Open, Capacity 34% 3,858 MW 3,858 MW Group MSDECL, Captive, 8% Ratnagiri Barmer Vijayanagar Ind - Barath 30% Operational Installed Capacity 1,200 MW 1,08
Slide 17: Thermal Assets | Q2 FY24 Highlights (2/2)
Thermal Assets| Q2 FY24 Highlights (2/2) Net Generation (MUs) Thermal : PLF – long term Operational Highlights 15% 11% • Total Net Generation +15% YoY at 4.3 BUs, 4,269 8,709 83% 83% 85% 72% 72% 73% 79% supported by strong merchant volumes, higher 3,698 7,879 70% LT generation at Ratnagiri, partly o
Slide 18: Renewable Assets | Presence across all modes of generation
Renewable Assets | Presence across all modes of generation Total 5,922 MW Offtaker Profile Operational Assets – 3,613 MW Under Construction – 2,321 MW Expected to be operational by CY 2024 3,628 MW Haryana, Open Capacity, 2% HYDRO WIND WIND Raj, 4% 4% 61% SECI, HP, 5% 31% Wind AP, SOLAR 6% 5,934 HYD
Slide 19: Renewable Assets | Q2 FY24 Highlights
Renewable Assets |Q2 FY24 Highlights Installed Green Capacity (MW) Net Generation (MUs) Operational Highlights 2.2x 47% 43% • Net generation increased 47% YoY to 3,613 4.4 BUs driven by capacity additions Group Captive Solar – 18 MW 6,627 SECI X- 216 MW 4,369 and contribution from Acquired RE 4,646
Slide 20: Safety & Sustainability
Safety & Sustainability Sholtu, Charkha Initiative
Slide 21: Continued Focus on Health & Safety Excellence
Continued Focus on Health & Safety Excellence All Figures are for Q2 FY24 Zero severe injuries/fatalities Lost Time Injury Frequency Rate of zero at all the operational plants 84% of contractors covered by JSW CARES audit 20 Contractors (34%) achieve 5 Star rating & 73% contractors achieve 3 Star an
Slide 22: 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 23: Sustainability: Targets and Strategy
Sustainability: Targets and Strategy SD Targets FY20 FY30 Improvement Strategic Initiatives and Approach Actuals Targets TCFD –Preliminary report received GHG Emissions Supply Chain Sustainability – development of Digital Platform is in progress for value Climate 0.76 0.215 * 60% chain partner
Slide 24: Sustainability Performance
Sustainability Performance Biodiversity Supplier Human & Ecosystem Assessment Rights Preliminary TCFD Phase 1 -Gap Identification of risks Human rights training Report received assessment and risk associated with critical plan - FY24 mapping using global suppliers based on ESG on discriminat
Slide 25: Sustainability: Q2 FY24 Performance
Sustainability: Q2 FY24 Performance Key Highlights Performance • Increased share of renewable energy for deep decarbonisation Ash Utilisation (%) Climate Change • Wind Projects – Tuticorin – generation started and commissioned 216 MW till 100% 100% 100% 100% Q2 FY 24. • Continuous focus on process i
Slide 26: Sustainability: Empowering Our Communities
Sustainability: Empowering Our Communities Sholtu, Shikhar Initiative JSW Energy Q2 FY24 Results Presentation 26
Slide 27: Sustainability: Empowering Our Communities
Sustainability: Empowering Our Communities Project Shikhar: Bringing Powerful Transformation in the Field Of Sports Our Footprint Boxing training Strength and 4 Centres sessions Condition Shikhar Fellowship coaching 120+ Trainees Dedicated Events and Professional Competitions 374 Medals Coaches Plat
Slide 28: Awards and Recognition
Awards and Recognition “Gold Award - 14th Exceed Green Power- Gen ESG future Environment & Sustainability Award in award -2023 for sustainability Best ESG category” Initiative – Water SEEM National Sustainable Efficiency by Award for Energy development Council of Enviro Efficiency Platinum foundatio
Slide 29: Investor Relations Contact
Investor Relations Contact: ir.jswenergy@jsw.in ESG Data Profile: Link Vijayanagar TPP 29
Slide 30: Business Environment
Business Environment Acquired RE portfolio Wind Farm (Maniyachi, Tamilnadu)
Slide 31: Indian Economy
Indian Economy Real GDP Growth (%) 20.1 13.1 8.4 6.2 7.8 5.4 4.5 6.1 3.2 2.8 0.7 2.5 4.0 • Indian economy continues to see resilient growth amid slow global recovery and growing regional divergences o Real GDP growth for Jun-23 quarter stood at 7.8 % YoY; -6.6 this is despite a strong base of 13.1%
Slide 32: India's installed capacity stands at 425 GW as on Sep-23
India’s installed capacity stands at 425 GW as on Sep-23 Sector-wise Installed Capacity Segment-wise Installed Capacity Renewable Capacity Breakdown 2% 131.5 15.8 24% 25% 11% State Thermal 44.1 Other RES 425 GW Nuclear 425 GW Private 31% Wind Hydro Solar 56% Central Renewables 71.6 51% Overall segme
Slide 33: Power Demand increased by 13% YoY in Q2 FY24
Power Demand increased by 13% YoY in Q2 FY24 Power Demand in BUs Power Demand Growth (% YoY) 165 40% 155 145 30% • Pan India demand during Q2 FY24 135 20% increased by 13% YoY and 7% YTD to 437 125 10% 115 BUs due to surge in economic activities 105 0% 95 -10% • Demand in West increased by 21% YoY A
Slide 34: Overall Generation Increased by 11% YoY in Q2 FY24
Overall Generation Increased by 11% YoY in Q2 FY24 Power Generation Growth (% YoY) Thermal PLFs 30% 80% 20% 70% • Overall generation in Q2 FY24 stood at 10% 60% 459 Bus, an increase of 11% YoY 0% -10% 50% • Share of thermal in overall generation Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr Ma
Slide 35: Merchant Power – Day Ahead Market
Merchant Power – Day Ahead Market Monthly Average Merchant Tariff (₹/unit) Linear Trend - Monthly Avg Price (₹/kwh) 11.0 12.0 9.0 10.0 7.0 8.0 • Day Ahead Market (DAM) prices averaged at 5.0 ₹5.9/unit during Q2 FY24 and increased by 6.0 3.0 9% YoY due to hot weather conditions and 4.0 1.0 unusual mo
Slide 36: Appendix
Appendix Acquired RE portfolio Solar Plant (Hungund, Karnataka)
Slide 37: Operational Performance – Net Generation
Operational Performance – Net Generation Net Generation (MUs) Capacity Q2 FY24 Q2 FY23 Change YoY H1 FY24 H1 FY23 Change YoY Location % % % LT 89% 1,478 1,302 14% 3,140 2,507 25% Ratnagiri (1,200 MW) Total 100% 1,752 1,311 34% 3,691 2,828 30% Barmer (1,080 MW) LT 100% 1,593 1,651 -4% 3,011 3,205 -6%
Slide 38: Operational Performance – PLF
Operational Performance – PLF PLF/CUF Capacity Q2 FY24 Q2 FY23 H1 FY24 H1 FY23 Location % % % % % LT 89% 67 (*88) 60 (*81) 72 (*94) 58 (*76) Ratnagiri (1,200 MW) Total 100% 72 (*91) 54 (*73) 76 (*96) 59 (*74) Barmer (1,080 MW) LT 100% 75 (*78) 77 (*81) 71 (*74) 75 (*78) LT 36% 80 (*86) 100 (*100) 83
Slide 39: Entity-wise Financial Results
Entity-wise Financial Results Entity-wise Revenue from Operations Particulars in ₹ Crore Q2 FY24 Q2 FY23 H1 FY24 H1 FY23 Standalone 1,133 1,141 2,617 3,138 JSW Energy (Barmer) 727 665 1,367 1,283 JSW Hydro Energy 691 539 988 896 Acquired RE Portfolio 607 NA 1,025 NA JSW Renewable Energy (Vijayanagar
Slide 40: Cash Returns on Adjusted Net Worth
Cash Returns on Adjusted Net Worth ₹ Cr (Unless mentioned otherwise) Quarter ended Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Reported PAT 324 864 560 466 180 272 290 850 Add: Depreciation 281 277 289 294 295 291 398 409 Add/(less): Deferred Taxes 26 (7) 84 42 14 24 55 89 (Less): Divide
Slide 41: 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 42: Developed a Pan India Footprint of Diverse Asset Base
Developed a Pan India Footprint of Diverse Asset Base Operational Capacity by CY 24 (9,792 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 43: 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 9,792 MW capacity – 11% Group 14% Captive, 22% Installed 6,771 MW Under-construction Others, 7% 3,021 MW 31% Current Exposure to Thermal 3,158 MW HP, 3% Gro
Slide 44: JSW Energy Company Overview – Broad Structure
JSW Energy Company Overview – Broad Structure Ratnagiri – 1,200 MW JSW Energy Limited Vijayanagar – 860 MW Hydro Entities Nandyal – 18 MW 9,792 MW Solar/Wind Entities Solar – 10MW Products & Services Total – 2,088 MW JSW Neo Energy * JSWEBL – 1,080 MW 5,924 MW Ind-Barath – 700 MW Energy Generation P
Slide 45: JSW Neo – Presence across the value chain
JSW Neo – 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 & JSW NEO - Assets Services Captive Solar, 243 Kutehr HEP, 240 SECI XII Wind, 300 5.9 GW 3
Slide 46: JSW Neo – Multiple Growth Drivers
JSW Neo – Multiple Growth Drivers Generation 5,924 300 240 733 810 3,603 238 49% CAGR Current SECI - X SECI- IX Group Kutehr SECI- XII Operational Operational Captive by CY24 Wind Energy Products & Services Hydro Pumped 3.4 GWh locked -in Storage 40 GWh by 2030 Solar BESS H2 Green Hydrogen 3,800 TPA
Slide 47: Developed a Pan India Footprint of Diverse Asset Base
Developed a Pan India Footprint of Diverse Asset Base Operational Capacity by CY 24 (5,924 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 48: Renewable Assets | Acquired RE Portfolio
Renewable Assets | Acquired RE Portfolio Net Generation (MUs) PLF Wind Solar Operational Highlights 1,306 2,218 • Net generation increased 27% YoY 1,031 165 1,951 381 driven by 29% increase in wind 148 349 generation Solar 1,141 Wind • CUF: Wind CUF stands at 40% due 1,837 883 1,602 to better machin
Slide 49: Acquired RE Wind Assets (1,331 MW)
Acquired RE Wind Assets (1,331 MW) Asset Optimisation & Performance Improvement Plan - Promising Outcome Witnessed Restoration of WTGs WIND All WTGs which were stopped before acquisition have been restored Maniyachi site (252 MW) fully operational and contributed in Q2 FY24 Action Plan Machine avail
Slide 50: Acquired RE Wind - progress on track
Acquired RE Wind - progress on track Actual Generation vs Wind Speed Machine Availability (%) +630 bps 97% +800 bps 7.0 96% 91% 6.4 88% 878 1,141 Q2 FY23 Q2 FY24 Actual Generation (MUs) Wind Speed (m/s) Wind Generation (MUs) Q2 FY23 Q2 FY24 H1 FY23 H1 FY24 1,141 CUF (%) -1 40.1% +830 bps 84 22 +330
Slide 51: Acquired RE Solar Assets (422 MW)
Acquired RE Solar Assets (422 MW) Asset Optimisation & Performance Improvement Plan - Promising Outcome Witnessed 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
Slide 52: Acquired RE Solar - progress on track
Acquired RE Solar - progress on track P-90 vs Actual Generation (MUs) Solar Generation (MUs) Q2 FY24 165 4 165 151 14 -1 148 18 MUs due to focused interventions P-90 Generation Actual Generation Q2 FY23 Performance GII Gain Billing Cycle Q2 FY24 Ratio gain Plant Availability (%) CUF (%) 98.9% 99.0%
Slide 53: Receivables Cycle Improving
Receivables Cycle Improving Strong collection in Acquired RE Portfolio’s Receivables Particulars in ₹ Cr 2,236 30% YoY improvement 1,799 1,532 Sep-22 Jun-23 Sep-23 Focused O&M Interventions leading to strong billing/collection growth 91% 17% Operating efficiency reflecting in strong generation and b
Slide 54: Renewable Assets | Hydro Q2 FY24 Highlights
Renewable Assets | Hydro Q2 FY24 Highlights Net Generation (MUs) Hydro : PAF and PLF 5% 13% Operational Highlights 4,472 107% 106% 2,900 2,766 3,910 107% 105% • Net generation at Hydro Assets Short 98% 94% 76% Term 67% (Karcham and Baspa) down due to 98% 98% 98% Long 97% 4,396 unusual monsoon and hi
Slide 55: Under Construction Projects
Under Construction Projects Acquired RE Solar Plant (Hungund, Karnataka) JSW Energy Q2 FY24 Results Presentation 55
Slide 56: JSW Neo - Wind Power Projects – 2.2 GW
JSW Neo- Wind Power Projects – 2.2 GW Wind Projects (SECI IX,X, XII and Group Captive) 216 MW commissioned by end of Q2 FY24 Expected commissioning by CY 2024 JSW Energy Q2 FY24 Results Presentation 56
Slide 57: JSW Neo - Kutehr Hydro Power Plant – 240 MW
JSW Neo - Kutehr Hydro Power Plant – 240 MW Tunneling & Concreting Electro-mechanical works Concreting Barrage Completed ~ 99.4% (21 km) tunneling • Spiral Case erection work of all • Completed ~76 % of Concreting of work (up from ~ 95.9 % in Q1) units completed Barrage Power house and control r
Slide 58: JSW Energy - Ind-Barath 700 MW – Commissioning in FY24
JSW Energy - Ind-Barath 700 MW – Commissioning in FY24 Mechanical Electrical Works • Boiler light up work completed • Transmission tower foundation, erection and • Coal and ash handling work in stringing work in progress progress • Switchyard overhauling work started JSW Energy Q2 FY24 Results Prese