JSW Energy Faces Profit Decline of 47.6% in Q1, Tackling Non-operational Expenses

JSW

JSW Energy, a leading private power producer, reported a significant decline in net profit for the first quarter, with a staggering 47.6% decrease. The company’s consolidated net profit stood at Rs 290.35 crore, down from Rs 554.78 crore in the same quarter of the previous year.

The decline in profit can be attributed to the one-time impact of non-operational expenses related to the recent Mytrah buyout and the Ind-Barath 700 MW thermal NCLT deal. These expenses had a temporary effect on JSW Energy’s financial performance. However, after adjusting for one-time items, the decline in net profit for the first quarter was reported at 34%.

Despite the profit decline, JSW Energy witnessed growth in certain areas. Earnings before interest, tax, depreciation, and amortization (EBITDA) increased by 18%, reaching Rs 1,307 crore. The company’s net renewable generation also saw a YoY increase of 35% due to renewable energy capacity additions.

Following the announcement, the stock price of JSW Energy declined, with a drop of 7%. Analysts have maintained varying views on the company’s stock, with some recommending a ‘sell’ rating due to the weak Q1 results and expensive valuations.

JSW Energy remains optimistic about its future prospects, with a focus on recovering lost EBITDA and maintaining a healthy balance sheet. The company continues to implement strategic initiatives to address the challenges faced in the first quarter.