JSW ENERGY 2022-23 Annual Report Analysis

Sun, 11 Jun

JSW ENERGY has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

JSW ENERGY Income Statement Analysis

• Operating income during the year rose 26.5% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 4.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 33.1% in FY23 as against 43.8% in FY22.
• Depreciation charges increased by 3.4% and finance costs increased by 8.7% YoY, respectively.
• Other income declined by 5.9% YoY.
• Net profit for the year declined by 15.1% YoY.
• Net profit margins during the year declined from 21.3% in FY22 to 14.3% in FY23.

JSW ENERGY Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	81,672	103,318	26.5%
Other income	Rs m	5,687	5,352	-5.9%
Total Revenues	Rs m	87,358	108,671	24.4%
Gross profit	Rs m	35,775	34,211	-4.4%
Depreciation	Rs m	11,311	11,692	3.4%
Interest	Rs m	7,769	8,443	8.7%
Profit before tax	Rs m	22,383	19,428	-13.2%
Tax	Rs m	4,948	4,627	-6.5%
Profit after tax	Rs m	17,435	14,801	-15.1%
Gross profit margin	%	43.8	33.1
Effective tax rate	%	22.1	23.8
Net profit margin	%	21.3	14.3

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JSW ENERGY Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 116 billion as compared to Rs 76 billion in FY22, thereby witnessing an increase of 52.4%.
• Long-term debt stood at Rs 192 billion as compared to Rs 69 billion during FY22, a growth of 179.3%.
• Current assets rose 58% and stood at Rs 121 billion, while fixed assets rose 49% and stood at Rs 414 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 536 billion as against Rs 355 billion during FY22, thereby witnessing a growth of 51%.

JSW ENERGY Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	173,745	185,637	6.8
Current Liabilities	Rs m	75,781	115,522	52.4
Long-term Debt	Rs m	68,764	192,079	179.3
Total Liabilities	Rs m	354,849	536,463	51.2
Current assets	Rs m	76,858	121,370	57.9
Fixed Assets	Rs m	277,992	414,077	49.0
Total Assets	Rs m	354,849	536,463	51.2

JSW ENERGY Cash Flow Statement Analysis

• JSW ENERGY's cash flow from operating activities (CFO) during FY23 stood at Rs 21 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -70 billion, an improvement of 403.5% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 73 billion, an improvement of 1,038% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 24 billion from the Rs 8 billion net cash flows seen during FY22.

JSW ENERGY Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	29,520	20,843	-29.4%
Cash Flow from Investing Activities	Rs m	-13,922	-70,095	-
Cash Flow from Financing Activities	Rs m	-7,813	73,275	-
Net Cash Flow	Rs m	7,841	24,087	207.2%

Current Valuations for JSW ENERGY

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 9.0, an decline from the EPS of Rs 10.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 261.2, stands at 29.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.3 times, while the price to sales ratio stands at 4.1 times.
• The company's price to cash flow (P/CF) ratio stood at 17.1 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	49.8	63.0
TTM Earnings per share	Rs	10.6	9.0
Diluted earnings per share	Rs	10.6	9.0
Price to Cash Flow	x	17.1	17.1
TTM P/E ratio	x	28.3	29.4
Price / Book Value ratio	x	2.3	2.4
Market Cap	Rs m	404,835	451,968
Dividends per share (Unadj.)	Rs	2.0	2.0

Ratio Analysis for JSW ENERGY

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.1x during FY23, from 1.0x during FY22. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio deteriorated and stood at 3.3x during FY23, from 3.9x during FY22. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company declined and down at 8.0% during FY23, from 10.0% during FY23. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company declined and down at 7.4% during FY23, from 12.4% during FY22. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company declined and down at 4.3% during FY23, from 7.1% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	1.0	1.1
Debtors’ Days	Days	3	5
Interest coverage	x	3.9	3.3
Debt to equity ratio	x	0.4	1.0
Return on assets	%	7.1	4.3
Return on equity	%	10.0	8.0
Return on capital employed	%	12.4	7.4

To see how JSW ENERGY has performed over the last 5 years, please visit here.

JSW ENERGY Share Price Performance

Over the last one year, JSW ENERGY share price has moved up from Rs 247.3 to Rs 261.2, registering a gain of Rs 13.9 or around 5.6%.

Meanwhile, the S&P BSE POWER Index is trading at Rs 3,954.7 (up 0.3%). Over the last one year it has moved down from 4,067.1 to 3,954.7, a loss of 112 points (down 2.8%).

Overall, the S&P BSE SENSEX is up 14.1% over the year.

(To know more, check out historical annual results for JSW ENERGY and quarterly results for JSW ENERGY)