JSW Energy Ltd. share price target

1 August 2020 JSW Energy (JSWE)s results reflected the impact of lower merchant sales volumes due to lower power demand and merchant prices. At a consolidated level, EBITDA was down 8% YoY to INR7.5b. Debt reduction continues, with net debt (incl. acceptances) declining ~INR1.6b during the quarter. Interest cost also decreased by 11% YoY. Furthermore, FCF generation would continue to be strong given ~80% of JSWEs capacity is under long-term PPAs. account of lower short-term sales. Short-term sales volumes declined 83% YoY to 123MU. Interest cost fell 11% YoY to INR2.5b given the debt reduction. Other income was up 58% YoY to INR0.8b, led by write-backs of INR0.3b.

20 May 2020 JSW Energy (JSWE)s results reflected an improved performance in the S/A business YoY, aided by lower interest costs on account of debt reduction. At a consol level, EBITDA rose 21% in 4QFY20. The acquisition of Kamalanga has been put on hold given the uncertainty surrounding recovery in power demand. While we see prudence in JSWE wanting to hold on to cash in the near term, if growth opportunities do not emerge or dividend payout is not increased, concerns may arise over capital allocation. account of higher short-term sales and lower base of the previous year for S/A (due to the timing effect in coal prices and tariff, in our view). Short- term sales volume rose 30% YoY to 736MU. Interest cost declined 10% YoY to INR2.5b given the debt reduction. PBT came in at INR0.9b (v/s INR0.1b in 4QFY19). For FY20, EBITDA/Adj. PAT was up 4%/20% YoY at INR29.6b/8.

18 February 2020 JSW Energy (JSWE) has signed a share purchase agreement to acquire GMR Kamalanga (1,050MW). We see the transaction as value accretive for JSWE, given the strategic location of the plant, room for merchant volumes, and the companys ability to reduce interest and O&M; costs post acquisition. We raise our FY21/22 EPS estimates by 15/8% to account for the takeover of Kamalanga from FY21. GMR Kamalanga (3x 350MW) is strategically located in Orissa near the coal belt region. Accordingly, variable costs are low at just INR1.5-1.6/kWh. In terms of PPA, 84% of the plants capacity is tied up under long-term agreements (25 years) with Odisha (263MW), Haryana (334MW) and Bihar (283MW). The balance 170MW is available for sale/merchant. Given the strategic location of the plant, fuel supply linkages are tied for the entire PPA. Besides, the company has recently secured another 0.4mtpa for part of its balance merchant capacity.

4 February 2020 JSWEs results highlight the impact of lower merchant volumes and prices amidst subdued power demand. EBITDA declined 14% YoY in 3QFY20. The company remains keen on tie-up of capacities, but the cancellation of the pilot scheme PPA and the delay in the commissioning of Dolvi will push back the same. Details/successful closure of proposed acquisitions are still awaited. Interest cost though declined 11% YoY to INR2.6b led by debt repayment. PBT was down 31% YoY at INR1.5b. Adj. PAT declined ~12% Standalone generation was down ~14% YoY at 2.6BU on the back of lower short-term (ST) sales volumes. ST volumes almost halved to 541MUs from 1,112MUs in the year-ago period. Hydros generation was ~6% higher YoY and helped offset the impact of new CERC norms. Hydro EBITDA was up 2% YoY at INR1.

Lower fuel cost, higher hydro gen. aid earnings Visibility on earnings improving; Maintain Neutral JSW Energy's (JSWE) EBITDA increased 9% YoY to INR9.4b (our estimate: INR9.8b) in 2QFY20, led by lower fuel cost and strong hydro generation, partly offset by the impact from the new CERC norms. PBT grew 21% YoY to INR4.8b on the back of a...

Revenue grew 2% YoY to INR24.1b in 1QFY20. Generation was down 4% YoY to 5.9BU, while realization increased 6% YoY to INR4.11/kWh led by certain one-offs. EBITDA grew 4% YoY to INR8.1b (in-line), as the benefit of lower fuel cost/higher...

JSW Energy (JSWE) is part of the JSW Group of companies headed by Sajjan Jindal. Company is looking to add more capacity through in-organic growth initiatives like its recent MoU with Government of Gujarat. The company also has operational transmission assets (165kms) in Maharashtra, owns a stake (93.3%) in a coal...

Revenue grew 8% YoY to INR19.2b (in-line) in 4QFY19. Generation was down 3% YoY to 4.2BU, while realization grew 12% YoY to INR4.56/kWh due to higher merchant prices and an increase in fuel prices (resulting in higher cost passthrough). EBITDA grew 13% YoY to INR4.7b (our estimate: INR5.7b), led by higher merchant prices. Finance cost declined 15% YoY/6% QoQ to INR2.7b as it repaid debt of ~INR6b during the quarter. Adj. PAT of INR39m (our estimate: INR196m) improved from a loss of INR634m in the year-ago period. Standalone realization declined 10% QoQ (+3% YoY) to INR4.55/kWh. Fuel cost was down 4% QoQ (2% YoY) to INR3.53/kWh. Generation increased 6.5% YoY...

Net generation increased 3.5% yoy to 5.1bn units, while average realization was up by a robust 17.3% yoy at Rs4.8/unit. Consequently, revenue increased 21.5% yoy to Rs24.2bn (above our estimate of Rs22.9bn). EBITDA increased by 27.2% yoy to Rs7.4bn, driven by higher revenue and lower other expenses. This was offset by higher fuel expenses which increased 23.6% yoy to Rs14.5bn. Interest expenses declined 13.4% yoy to Rs2.9bn, leading to a robust 191% yoy rise in PAT to Rs1.5bn, surpassing our and consensus expectations. Net debt, including short-term buyer's credit, declined by Rs2.96bn qoq to Rs106.9bn in...

5 November 2018 JSW Energys (JSWE) EBITDA was down 2% YoY to INR8.6b, but ~9% ahead of estimate. Generation increased ~9% YoY to 6.7BU, but higher fuel costs offset the gains. Interest cost is down ~21% YoY (-1% QoQ) as it continues to deleverage. acceptances) has reduced by ~INR9.8b to INR120b in 1H, as FCF generation is used to repay debt. 0.9b) was aided by late payment surcharge income (non-recurring). PAT has increased 6% YoY to INR3.2b (est.