The independent financial analyst theScreener just lowered the general evaluation of JSW ENERGY (IN), active in the Conventional Electricity industry. As regards its fundamental valuation, the title now shows 0 out of 4 stars while market behaviour can be considered defensive. theScreener believes that the title remains under pressure due to the loss of a star(s) and downgrades its general evaluation to Neutral. As of the analysis date March 22, 2022, the closing price was INR 301.15 and its tar...
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
JSW ENERGY: Miss on account of higher operating and finance costs (JSW IN, Mkt Cap USD5.5b, CMP INR251, TP INR180, 28% Downside, Sell) JSW Energy (JSWE)’s results reflect the impact of higher operating and finance costs, leading to lower profitability. At the consolidated level, EBITDA was down 6% YoY to INR7.0b, 7% below our estimate of INR7.5b. The co. has set its sights on improving its Renewables footprint, with plans to reach a total of 10GW of installed capacity by FY25 (v/s 4.5GW ...
Reason For Caution Various market dynamics have deteriorated recently which leads us to a more neutral outlook for the weeks ahead. For now we do not expect to see a significant correction, however we have reason to believe that this current consolidation period could go on longer than initially expected. Below we explain updates to our outlook. · Deteriorating Market Dynamics: US Dollar & EM Equities. The 92 level has been our key line in the sand on the US dollar (DXY); we have sugge...
Q3FY20 results Vijayanagar TPS operated at a PLF of 45% in Q3FY20 (vs 57% in Q3FY19) while Ratnagiri TPS PLF was 72% (vs 80% in Q3FY19). The PLF was lower due to weak demand of electricity in Q3FY20 leading to 52% decline in short term sales (at 541MU vs 1.12BU in Q3FY19). Net generation from Baspa and Karcham hydro power plant’s (operating under a subsidiary), in Q3FY20 was 730MU (vs 669MU in Q3FY19). EBITDA at standalone entity came in at Rs2.1bn (vs Rs3.0bn in Q3FY19 and our estimate of ...
JSW Energy: Lower merchant volumes impact performance (JSW IN, Mkt Cap USD1.5b, CMP INR63, TP INR71, 12% Upside, Neutral) Capital allocation is key; Maintain Neutral JSWE's 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 closu...
Q2FY20 results PLF for Vijayanagar TPS for Q2FY20 was 40% yoy (vs 52% in Q2FY19) while Ratnagiri TPS PLF was 74% (vs 64% in Q2FY19). Vijayanagar PLF remained low despite 300MW PPA with Telangana (July 2019 to March 2020) due to low demand in Q2. Baspa and Karcham hydro power plant’s (operating under a subsidiary), generated 2.9BU in Q2FY20 (vs 2.6BU in Q2FY19) Consequently, standalone Company (operating Vijayanagar and Ratnagiri) adjusted EBITDA came in at Rs2bn (vs Rs1.7bn) in Q2FY20. Basp...
JSW ENERGY: Lower fuel cost, higher hydro gen. aid earnings; Visibility on earnings improving; Maintain Neutral (JSW IN, Mkt Cap USD1.6b, CMP INR70, TP INR76, 8% Upside, 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 decline in finance cost (-12% YoY), while adj. PAT was up ~12% YoY to INR3.5b (...
Q1FY20 results Standalone Company (operating Vijayanagar and Ratnagiri) adjusted EBITDA came in at Rs2.5bn (vs Rs1.8bn) in Q1FY20. Baspa and Karcham (operating under a SPV) reported EBITDA of Rs3.3bn, flat yoy while Barmer TPS, reported a EBITDA of Rs2.5bn (vs Rs2.7bn in Q1FY19) in Q1FY20. As a result, consolidated adjusted EBITDA came in at Rs8bn (Vs estimate of Rs9.5bn; Q1FY19 EBITDA of Rs7.6bn) and JSW reported profit of Rs2.8bn(est of Rs3.7bn). EBITDA and PAT has been adjusted for shari...
JSW ENERGY: Benefit of lower fuel cost diluted by new CERC norms (JSW IN, Mkt Cap USD1.6b, CMP INR68, TP INR75, 11% Upside, Neutral) 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 merchant prices was diluted by the impact from new CERC regulation in hydro assets. Generation at the standalone level dec...
Q4FY19 results Standalone company (operating Vijayanagar and Ratnagiri) reported a PAT of Rs476m/Rs2.5bn inn Q4FY19/FY19. Baspa and Karcham reported a EBITDA of Rs1bn/11bn while Barmer TPS, reported a EBITDA of Rs2.3bn/Rs19bn in Q4FY19/FY19. As a result, consolidated EBITDA is Rs4.8bn (Vs estimate of Rs9.8bn) and JSW reported profit of Rs39m(est of Rs1bn). FY19 PAT was Rs7bn. Low utilisation of merchant capacity is reason for miss in estimates. PLF for Vijayanagar TPS for Q4FY19/FY19 was 37...
JSW Energy: Higher realization drives growth; Visibility on earnings improving (JSW IN, Mkt Cap USD1.6b, CMP INR68, TP INR77, 14% Upside, Neutral) 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 pass-through). EBITDA grew 13% YoY to INR4.7b (our estimate: INR5.7b), led by higher merchant prices. Finance cost declined 1...
JSW Energy: Scraps electric vehicle plans; To use FCF for growth opportunities in power sector; Maintain Neutral (JSW IN, Mkt Cap USD1.7b, CMP INR69, TP INR77, 11% Upside, Neutral) Decision to not pursue electric vehicle business JSW Energy (JSWE) has announced that it will no longer pursue the electric vehicle (EV) venture. In a statement, the company attributed it to ‘higher than anticipated uncertainties associated with the EV business,’ while stating that it would rather ‘maintain ca...
Q3FY19 results Net generation for Vijayanagar TPS for Q3FY19 was 1002MU (57% PLF), +12% yoy while Ratnagiri TPS net generation was 2.0BU (80% PLF), an increase of 12% yoy. At present, Vijayanagar TPS sells 515MW and Ratnagiri TPS sells 330MW power on merchant basis. Dark spread (standalone power realisation minus fuel cost) has increased to Rs1.19/unit (increase of Rs0.26/unit yoy) despite elevated international coal prices due to better realisations. As a result, standalone profit came i...
JSW Energy: Higher merchant rates drive strong performance; Net debt reducing; EV remains an overhang; Maintain Neutral (JSW IN, Mkt Cap USD1.6b, CMP INR68, TP INR73, 8% Upside, Neutral) JSW Energy (JSWE) had a solid quarter on back of strong merchant realization. EBITDA increased 26% YoY to INR7.4b (our est. of INR5.8b). Interest cost declined 13% YoY / 4% QoQ to INR2.9b as FCF was used to repay debt. Other income was down ~20% YoY to INR0.7b. Reported PAT increased from INR0.5b in 3QFY18 ...
JSW Energy: Operationally better; Deleveraging continues; EV remains an overhang; Maintain Neutral (JSW IN, Mkt Cap USD1.5b, CMP INR68, TP INR72, 6% Upside, Neutral) JSW Energy’s (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. Net debt (incl. acceptances) has reduced by ~INR9.8b to INR120b in 1H, as FCF generation is us...
JSW Energy: Lower hydro generation drives operating weakness; But saving in interest cost drives PAT growth; Maintain Neutral (JSW IN, Mkt Cap USD1.6b, CMP INR67, TP INR75, 12% Upside, Neutral) JSW Energy's (JSWE) 1QFY19 EBITDA was down 11% YoY to INR7.8b (est. INR7.1b) on lower hydro generation. PAT however increased 5% YoY to INR2.3b (est. ~INR1.5b) on lower interest cost and tax rate, partly offset by lower other income and higher depreciation. Net debt (ex-acceptances) was unchanged QoQ...
Q4FY18 results Net generation for Vijayanagar TPS for Q4FY18 was 857MU (49% PLF), a decline of 34% yoy while Ratnagiri TPS net generation was 1.4BU (58% PLF), an increase of 48% yoy. Vijayanagar TPS (860MW) entire capacity and 425MW of Ratnagiri TPS sells power on merchant basis. FY18 PLF of Vijayanagar was 52%, the lowest in its history. Dark spread (standalone power realisation minus fuel cost) has declined to Rs0.63/unit (decline of Rs0.30/unit qoq; declind of Rs0.43/yoy in Q4FY17) due t...
Q3FY18 results Net generation for Vijayanagar TPS for Q3FY18 was 896MU, a decline of 3% yoy while Ratnagiri TPS net generation was 1.8BU, an increase of 25% yoy; 75% PLF. Vijayanagar TPS (860MW) entire capacity and 425MW of Ratnagiri TPS sells power on merchant basis. Vijayanagar TPS operated at a PLF of 51% (vs 53% in Q3FY17). Dark spread (standalone power realisation minus fuel cost) has declined to Rs0.88/unit (decline of Rs0.27/unit qoq; Rs1.15/unit in Q2FY18) due to lower merchant rea...
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