Finance expenses grew by 9% to Rs 214 crore during the quarter due to additional borrowings (for continuing expansion expenditure) and a rise in the weighted average cost of debt to 8.29 percent with the increasing rate cycle.
JSW Energy shares fell more than 4% intraday on January 23 after the business reported third-quarter earnings.
JSW Energy reported a 45 percent drop in total net profit to Rs 180 crore for the December 2022 quarter on January 20. According to a business statement, its consolidated profit after tax (PAT or net profit) was Rs 180 crore (in the quarter ended December 31), down from Rs 324 crore net reported a year before.
JSW Energy reported that its overall income grew 18 percent to Rs 2,350 crore during the October-December 2022 quarter from Rs 1,984 crore the previous year due to better realisation as higher fuel prices are passed on in nature for long term power purchase agreements (LT PPA).
The EBITDA for the quarter was 18% lower at Rs 727 crore compared to Rs 882 crore in the prior year’s similar period.
“During the quarter, the total revenue increased by 18% YoY to ₹2,350 crore from ₹1,984 crore YoY, due to higher realisation (as higher fuel costs are pass through in nature for LT PPAs (long term power purchase agreements).
The EBITDA for the quarter was 18 per cent lower at ₹727 crore vis-a-vis ₹882 crore in the corresponding period of the previous year.
“The decrease is primarily due to lower short term sales YoY, partly offset by contribution from Vijayanagar Solar and higher other income in the quarter,” it said.
Finance expenses grew by 9% year on year to 214 crore during the quarter, attributable to higher borrowings (for ongoing expansion expenditure) and a rise in weighted average cost of debt to 8.29% due to the increasing rate cycle.
As of December 31, 2022, the consolidated net worth and net debt were 18,392 crore and 9,840 crore, respectively, resulting in a Net Debt to Equity ratio of 0.54x and a Net Debt/TTM EBITDA ratio of 2.30x.