JSW Energy Shares Tumble On Q3 Profit Miss

The company's net profit fell 59.11% to Rs 186.7 crore on lower sales compared with Bloomberg's estimate of Rs 300.2 crore.

<div class="paragraphs"><p>JSW Energy's plant in Vijayanagara, Karnataka. (Source: Company website)</p></div>
JSW Energy's plant in Vijayanagara, Karnataka. (Source: Company website)

Shares of JSW Energy Ltd. declined the most in 13 weeks since Oct. 21, 2022, after third-quarter profit miss.

The company's net profit fell 59.11% to Rs 186.7 crore on lower sales. Analysts polled by Bloomberg estimated a net profit of Rs 300.2 crore

The Sajjan Jindal-led power firm's merchant sales in Q3 FY23 dropped to 95 million (9.5 crore) units compared with 323 million (32.3 crore) units a year earlier, largely on weak merchant demand, JSW Energy said.

JSW Energy Q3 Results: Profit Falls 59% Sequentially On Lower Sales

JSW Energy Q3FY23 (Consolidated, QoQ)

  • Revenue down 5.82% at Rs 2248.1 crore (Bloomberg estimate: Rs 2,049.2 crore)

  • Ebitda down 29.72% at Rs 624.9 crore (Bloomberg estimate: Rs 777 crore)

  • Ebitda margin at 27.8% versus 37.2% (Bloomberg estimate: 37.92%)

  • Net Profit down 59.11% at Rs 186.7 crore (Bloomberg estimate: Rs 300.2 crore)

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Shares of the company fell 4.84% to rs 249.65 apiece, while the benchmark Nifty 50 gained 0.66%. Total traded volume stood at 3.3 times its 30-day average.

Out of the 11 analysts tracking the company, one maintains a 'buy' rating, two recommend a 'hold' and eight suggest to 'sell' the stock, according to Bloomberg data. The 12-month consensus price target implies an upside of 12.3%.

Citi Research On JSW Energy

  • Maintains 'sell' with a target price of Rs 206, due to expensive valuations despite good execution and healthy balance sheet.

  • JSW Energy Ltd. reported weaker than expected Q3FY23 results due to lower merchant sales and higher than expected fuel costs.

  • Execution on renewable and green energy foray continued well.

  • JSW Renew Energy Five, a subsidiary of, JSW Energy received order for 500MW standalone battery storage system from Solar Energy Corporation of India.

  • Better than expected power demand growth and improvement in visibility on long term renewable capacity pipeline are the key upside risks that could cause the shares to deviate from the brokerage's target price.