JSW ENERGY 2023-24 Annual Report Analysis

Tue, 18 Jun

JSW ENERGY has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during FY23-24.

JSW ENERGY Income Statement Analysis

• Operating income during the year rose 11.2% on a year-on-year (YoY) basis.
• The company's operating profit increased by 57.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 47.0% in FY24 as against 33.1% in FY23.
• Depreciation charges increased by 39.7% and finance costs increased by 143.2% YoY, respectively.
• Other income declined by 14.9% YoY.
• Net profit for the year grew by 16.5% YoY.
• Net profit margins during the year grew from 14.3% in FY23 to 15.0% in FY24.

JSW ENERGY Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	103,318	114,859	11.2%
Other income	Rs m	5,352	4,554	-14.9%
Total Revenues	Rs m	108,671	119,413	9.9%
Gross profit	Rs m	34,211	53,983	57.8%
Depreciation	Rs m	11,692	16,334	39.7%
Interest	Rs m	8,443	20,534	143.2%
Profit before tax	Rs m	19,428	21,669	11.5%
Tax	Rs m	4,627	4,423	-4.4%
Profit after tax	Rs m	14,801	17,247	16.5%
Gross profit margin	%	33.1	47.0
Effective tax rate	%	23.8	20.4
Net profit margin	%	14.3	15.0

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JSW ENERGY Balance Sheet Analysis

• The company's current liabilities during FY24 down at Rs 73 billion as compared to Rs 89 billion in FY23, thereby witnessing an decrease of -18.7%.
• Long-term debt stood at Rs 277 billion as compared to Rs 192 billion during FY23, a growth of 44.4%.
• Current assets fell 9% and stood at Rs 87 billion, while fixed assets rose 26% and stood at Rs 522 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 609 billion as against Rs 510 billion during FY23, thereby witnessing a growth of 19%.

JSW ENERGY Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	185,637	207,421	11.7
Current Liabilities	Rs m	89,377	72,694	-18.7
Long-term Debt	Rs m	192,079	277,312	44.4
Total Liabilities	Rs m	510,318	609,093	19.4
Current assets	Rs m	95,225	86,648	-9.0
Fixed Assets	Rs m	414,077	522,445	26.2
Total Assets	Rs m	510,318	609,093	19.4

JSW ENERGY Cash Flow Statement Analysis

• JSW ENERGY's cash flow from operating activities (CFO) during FY24 stood at Rs 62 billion, an improvement of 199.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -83 billion, an improvement of 18.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 17 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -3 billion from the Rs 26 billion net cash flows seen during FY23.

JSW ENERGY Cash Flow Statement 2023-24

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-23	Mar-24
Cash Flow from Operating Activities	Rs m	20,843	62,336	199.1%
Cash Flow from Investing Activities	Rs m	-70,095	-83,177	-
Cash Flow from Financing Activities	Rs m	73,275	16,748	-77.1%
Net Cash Flow	Rs m	26,336	-2,887	-

Current Valuations for JSW ENERGY

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 10.5, an improvement from the EPS of Rs 9.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 696.6, stands at 71.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.9 times, while the price to sales ratio stands at 10.0 times.
• The company's price to cash flow (P/CF) ratio stood at 19.0 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Sales per share (Unadj.)	Rs	63.0	70.0
TTM Earnings per share	Rs	9.0	10.5
Diluted earnings per share	Rs	8.5	9.9
Price to Cash Flow	x	15.9	19.0
TTM P/E ratio	x	28.8	71.3
Price / Book Value ratio	x	2.4	3.1
Market Cap	Rs m	451,968	638,349
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 1.2x during FY24, from 1.1x during FY23. 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 2.1x during FY24, from 3.3x during FY23. 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 improved and stood at 8.3% during FY24, from 8.0% during FY24. 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 improved and stood at 8.7% during FY24, from 7.4% during FY23. 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 improved and stood at 6.2% during FY24, from 4.6% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Current ratio	x	1.1	1.2
Debtors’ Days	Days	5	3
Interest coverage	x	3.3	2.1
Debt to equity ratio	x	1.0	1.3
Return on assets	%	4.6	6.2
Return on equity	%	8.0	8.3
Return on capital employed	%	7.4	8.7

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 256.9 to Rs 696.6, registering a gain of Rs 439.7 or around 171.2%.

Meanwhile, the S&P BSE POWER Index is trading at Rs 7,973.8 (up 0.9%). Over the last one year it has moved up from 3,998.6 to 7,973.8, a gain of 3,975 points (up 99.4%).

Overall, the S&P BSE SENSEX is up 22.0% over the year.

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