JSW Energy Annual Report 2019

Performance by Capitals

Financial Capitals

Delivering Consistent Value on the Back of a Robust Financial Performance

At JSW Energy, the robustness of our financial capital is essential to our operational success. Over the years, we have leveraged our strong financial capital to invest in business expansion to sustain market leadership. To create sustainable value for all stakeholders, we manage our financial capital in an astute, optimum and diligent manner, thereby harnessing opportunities for long-term value creation. We are among the few power-generating companies in India with strong revenue growth that bolsters our future growth strategies. We have been able to demonstrate a progressive financial performance over the years.

Our financial capital inputs are majorly to fund our capacity expansion, operational expenses, repayment of principal and interest on debts and strategic acquisitions.

Performance Snapshot
Our stable financial performance is the result of the business decisions we have taken over the last few years and our operational efficiency. Our consolidated Net Debt to Equity ratio substantially improved over the years from 1.29x in FY2017 to 0.85x at the close of FY2019. This was achieved through proactive prepayments, scheduled repayments and intensive working capital management.

Our debtor days slightly increased by six days over the previous year’s level of 50 days and the receivables level increased by `276.53 Crore. Owing to increase in Marginal Cost of Funds based Lending Rate (MCLR) by the Reserve Bank of India (RBI), there was a general increase in interest rates due to which our weighted average cost of debt slightly increased by 4 bps during the reporting year.

Key Performance (Consolidated) Highlights and Outcomes

Revenue (` in Crore)

9,506

During the last two financial years, JSW Energy recorded 5.87% CAGR in revenue, which has been majorly driven by revenue from sales of power.

Revenue from sale of power increased from `7,711 Crore in FY2018 to `8,794 Crore in FY2019, with y-o-y increase of 14.05%.

Revenue from sales of services increased from `163.23 Crore in FY2018 to `169.58 Crore in FY2019, with y-o-y increase of 3.89%.

Our focus for the next year is to continue the growth momentum in our core business and investments in diversified portfolio for sustainable growth.

CAPEX (` in Crore)

233

There has been an y-o-y increase of 93.33% on cash outflows in capital expenditure (capex) for upgrading our facilities in the areas of technology, automation, safety, environment and systems.

With an aim of diversifying into cleaner energy, we expanded our portfolio in the RE segment in FY2019, with an investment of `43.81 Crore for setting up solar power systems.