Jsw Energy Limited · NSE:JSWENERGY
Jsw Energy — Q3 FY23 Earnings Presentation
66 slides from Jsw Energy's earnings presentation, Jan 20, 2023
Slide 1: Exchange filing cover letter
Energy Limited Regd. Office : JSW Centre Bandra Kurla Complex Bandra (East), Mumbai - 400 051 CIN: L74999MH1994PLC077041 Phone: 022 – 4286 1000 Fax: 022 – 4286 3000 Website: www.jsw.in SEC / JSWEL 20th January, 2023 BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers “Exch
Slide 2: Q3 FY23 Results Presentation
Q3 FY23 Results Presentation January 20, 2023
Slide 3: 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 4: 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 5: 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 6: 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 7: 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 8: 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 9: Strategic Update
Strategic Update Site Bridge: Karcham Wangtoo (1,091MW) JSW Energy Q3 FY23 Results Presentation 8
Slide 10: 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 11: 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 12: Operational & Financial Performance
Operational & Financial Performance Ratnagiri TEP 1,200 MW
Slide 13: 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 14: 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 15: 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% 11,331 11,337 78% 83% 83% o Vijayanagar higher LT generation (+11% 3,700 68% 68% 72% 69% 3,458 YoY) was offset by lower LT generation at
Slide 16: 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 17: 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 18: 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 19: EBITDA Bridge
EBITDA Bridge Particulars in ₹ crore JSW Energy Q3 FY23 Results Presentation 18
Slide 20: 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 21: 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 22: 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 23: 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 24: Sustainability
Sustainability Baspa Reservoir
Slide 25: 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 26: 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 27: 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 28: 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 29: 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 30: 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 31: Investor Relations Contact
Investor Relations Contact: ir.jswenergy@jsw.in ESG Data Profile: Link Pooling Substation – SECI X 30
Slide 32: Business Environment
Business Environment Baspa Hydro Power Plant
Slide 33: 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 34: 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 35: 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 36: 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 37: 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 38: Appendix
Appendix Hydro Power Plant - Turbine
Slide 39: 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 40: 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 41: 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 42: 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 43: 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 44: 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 45: 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 46: 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 47: 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 48: 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 49: 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 50: 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
Slide 51: Independent Auditor's Review Report (Standalone)
Chartered Accountants Deloitte One International Center Tower 3, 27th-32nd Floor Haskins & Sells LLP Senapati Bapat Marg Elphinstone Road (West) Mumbai-400 013 Maharashtra, India Tel : +91 22 6185 4000 Fax: +91 2261854101 INDEPENDENT AUDITOR'S REVIEW REPORT ON REVIEW OF INTERIM STANDALONE FINANCIAL
Slide 52: Standalone Unaudited Financial Results
~ _,l'SIIV ENERGY LIMITED Registered Office : JSW Centre, Bandra Kurla Complex, Bandra (East), Mumbai-400051 CIN : L74999MH1994PLC077041 Statement of Standalone Unaudited Financial Results for the Quarter and Nine Months Ended December 31, 2022 t crore Quarter Ended Nine Months Ended Year Ended Sr.
Slide 53: Additional information pursuant to Regulation 52(4)
ddltlonal lnformaUon pursuant to Reg ulallon 52(4) of Sec urities and EKc hange Board of lndla (Listing Ob ligations and Disclosure Requirements) Regulations, 20 15, as amended: As at / As at/ Asat l Sr. Particulars Quarter Ended Nine Months Ended Year Ended No. 31.12.2022 30.09. 2022 31.12.2021 31.
Slide 54: Independent Auditor's Review Report (Consolidated)
Chartered Accountants Deloitte One International Center Tower 3, 27th-32nd Floor Haskins & Sells LLP Senapati Bapat Marg Elph instone Road (West) 'Mumbai-400 013 Maharashtra, India Tel : +91 22 618S 4000 Fax: +91226185 4101 INDEPENDENT AUDITOR'S REVIEW REPORT ON REVIEW OF INTERIM CONSOLIDATED FINANC
Slide 55: Auditor's Review Report (continued)
Deloitte Haskins & Sells LLP 6. We did not review the financial information I financial results of 27 subsidiaries included in the unaudited consolidated financial results, whose interim financial information I financial results reflect, total revenues of Rs. 1,389.45 crore and Rs. 3,812.85 crore fo
Slide 56: List of entities included in consolidated results
Deloitte Haskins & Sells LLP Appendix A List of entities Included in consolidated financia l results I. Parent JSW Energy Limited II. Subsidiaries a) JSW Hydro Energy Limited (formerly known as Himachal Baspa Power Company Limited) b) JSW Energy (Kutehr) Limited c) JSW Energy (Raigarh) Limited d) JS
Slide 57: Consolidated Financial Results Statement
~ ENERGY LIMITED Registered Office : JSW Centre, Sandra Kurla Complex, Sandra (East), Mumbai 400051 GIN: L74999MH1994PLC077041 Statement of Consolidated Financial Results for the Quarter and Nine Months Ended December 31, 2022 f crore Quarter Ended Nine Months Ended Year Ended Sr. Particulars 31 .12
Slide 58: Notes to financial results
Notes: 1 Exceptional item oft 120 crore comprises reversal of loss allowance on a loan, recognised in an earlier year, upon recovery during the quarter ended June 30, 2022 2 The Group continues to monitor the economic effects of COVID-19 on its business Based on the current evaluation by the managem
Slide 59: Press Release: Financial Results for Quarter ended December 31, 2022
~ _-'5f/VEnergy Press Release January 20, 2023 Financial Results for the Quarter ended December 31, 2022 Mumbai, India: JSW Energy Limited ("JSW Energy" or the "Company") today reported its results for the quarter ("Q3 FY23" or the "Quarter") ended December 31, 2022. Key Highlights of Q3 FY23 (Conso
Slide 60: Under construction and storage projects update
Under construction -Utility Scale Projects: • 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. WTG foundation and balance of plant work in-progress for SECI IX. • 240 MW Kutehr HEP: Project well ahead of timelines
Slide 61: Consolidated Operational Performance
Consolidated Operational Performance The net generation at various locations/plants is as follows: (Figures in Million Units) Location/ Plant Q3 FY23 Q3 FY22 Vijayanagar 716 800 Ratnagiri 1,133 1,235 Barmer 1,609 1,638 Nandyal 1 26 Himachal Pradesh (Hydro) 721 793 Solar 89 3 Wind-SECI X 6 !Total* 4,
Slide 62: Consolidated Financial Performance Review and Analysis
• Himachal Pradesh (Hydro): The plants operated at an average long term PLF of 24% for the quarter vis-a-vis 27% in Q3 FY22 due to lower water flow. • Solar: The solar plants achieved an average CUF of 18% vis-a-vis 17% in Q3 FY22. Consolidated Financial Performance Review and Analysis: During the q
Slide 63: Liquidity and Growth Strategy
Liquidity continues to be strong with Cash balances 3 at ~3,029 crore as of Dec 31, 2022. The Company has one of the strongest balance sheets among its peers with a large headroom to pursue value accretive growth opportunities. Growth Strategy: JSW Energy is pursuing a growth strategy to expand its
Slide 64: Business Environment and Outlook
generative operating portfolio (=n,029 crore of cash and cash equivalent), the Company is well positioned to pursue its growth aspirations. Business Environment 4 : • India's power demand increased by 6.4% YoY in Q3 FY23, on the back of broad based demand increase across the country. • Further, the
Slide 65: India's macro-economic outlook
• India's latest macro-economic data reflect a resilient economy in the midst of a slowing global economic landscape. Both manufacturing and services PMI increased in the quarter. Strong GST collections trend continues with more than ~ 1.4 lakh crore/month for 10 months in a row. • December CPI infl
Slide 66: About JSW Energy
ABOUT JSW ENERGY: JSW Energy Ltd is one of the leading Private sector power producers in India and part of the USO 22 billion JSW Group which has significant presence in sectors such as steel, energy, infrastructure, cement, sports among others. JSW Energy Ltd has established its presence across the