JSW Energy Q1 preview: Here's what brokerages expect from the utility player

JSW Energy, the utility arm of JSW Group, is scheduled to announce its results for the quarter ended on June 30, 2023 on Friday and analysts expect the company to report a mixed bag of numbers in the initial phase of the earnings seasons for the first quarter of the ongoing fiscal.

Market expects the company to report a strong performance on quarter-on-quarter (QoQ) basis, while year-on-year (YoY) performance is seen subdued. The company is likely to report a revenue in the range of Rs 2,800-3,400 crore, with a profit after tax (PAT) between 280-400 crore. EBITDA margin may rise 400-600 basis points (bps) sequentially, they said.

JSW Energy could witness a dip in earnings YoY as 1QFY23 had the benefit of higher merchant realisation, said JM Financial, which has a 'hold' rating on the stock.

It pegs sales at Rs 2,828.8 crore, up 6 per cent QoQ but down 7 per cent YoY in the Q1. EBITDA is seen at Rs 903.6 crore, up 21 per cent QoQ, but falling 12 per cent YoY, with an EBITDA margin at 32 per cent, rising 403 bps QoQ. PAT is seen at Rs 356.7 crore, up 31 per cent QoQ but down 19 per cent YoY.

Shares of JSW Energy gained more than 2 per cent to Rs 307.75 on Friday, ahead of its Q1 results. The total market capitalization of the largecap player was hovering around Rs 50,000 crore. The scrip had settled at Rs 299.05 on Thursday.

Antique Stock Broking expects JSW Energy to report sales of Rs 3,388.5 crore in the June 2023 quarter, up 12 per cent YOY and 27 per cent QoQ, while its EBITDA is seen at Rs 1,152.1 crore, up 13 per cent YoY and 55 per cent QoQ. Net profit is likely to be around Rs 271.1 crore, down 38 per cent YoY, but up 4 per cent QoQ. The brokerage had a buy rating on the stock.

"JSW aims to reach 10 GW by FY25 and 20 GW by FY30. In the near-term JSW has 3.3 GW of assets under construction or pipeline that will help it achieve the 10 GW target by FY25. Based on these projections, the company can achieve an EBITDA of Rs 8,000 crore in FY25," Antique added, expecting it to be the standout performer from the utility pack.

Kotak Institutional Equities expects JSW Energy to report a net sales of Rs 2,990 crore, flat sequentially but up 12 per cent QoQ, with EBITDA at 1,028 crore, rising 38 per cent QoQ but flat on a YoY basis. The company may report a PAT at Rs 410 crore, down 20 per cent YoY but up 32 per cent on QoQ basis.

EBITDA margins are seen at 34.4 per cent, rising 61 bps YoY and 646 bps QoQ, expects the brokerage. "Generation is seen at 5.9 BU, up 2 per cent YoY, with sequentially higher contribution from hydro capacities and impact of lower prices of imported coal to be partially offset by lower merchant tariffs", said Kotak 

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