JSW Energy - March 2013 Results Preview - Motilal Oswal

- We expect JSW Energy (JSWEL) to report consolidated PAT of INR3.6b (up 114.6% YoY) in 4QFY13E.

- Company generated 3.3BUs during Jan/Feb-13, including coal and lignite capacity. We expect a 3% decline in standalone generation in 4QFY13E led by lower PLF in Vijaynagar (on relative basis). We expect overall generation (including Rajwest) to grow by 22% at 5BU.

- We have assumed short term realization of INR4.6/unit, flat QoQ. We expect fuel cost to be ~INR2.5/unit (coal based) as international coal prices were muted during the quarter at USD85.8/t (till March 20, 2013) v/s USD85.5/t QoQ.

- Rajwest has commissioned all the remaining 4 units, thus taking its total capacity to 1,080MW. The clearance to enhance Kaprudi lignite mine's capacity is still pending.

- We expect JSWEL to report consolidated PAT of INR10.9b in FY13E (up 228% YoY) and INR10.7b in FY14E (down 1.7% YoY). Stock trades at reported P/E of 8.2x FY15E.

Source : Equity Bulls

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