Q3 Results 2023: IEX, Ramkrishna Forgings, JSW Energy announce December quarter results - HIGHLIGHTS

Q3 Results 2023: Several listed companies announce their October-December quarterly on Friday. Among them were IEX, JSW Energy and Ramkrishna Forgings who declared their december quarter earnings. Earlier today, Reliance Industries reported a 15 per cent drop in its Q3 net profit to Rs to Rs 15,792 crore.     

IEX Q3 Results: Net profit dips over 4% to Rs 77 crore

Indian Energy Exchange (IEX) on Friday reported an over 4 per cent decline in its consolidated net profit to Rs 77.21 crore in the December quarter.

The consolidated net profit of the company stood at Rs 80.73 crore in the year-ago period, according to a regulatory filing.

Total income also fell to Rs 117.34 crore in the October-December quarter from Rs 130.77 crore in the corresponding period a year ago.

An IEX statement said that in the third quarter of 2022-23, it achieved electricity trade volumes of 23 BU (billion units) which is a growth of 9 per cent quarter-on-quarter.

However, the electricity trade volumes declined 2 per cent in the December quarter on year on year basis. The electricity trade volume was 21.2 BU in July-September 2022 and 23.5 BU in October-December 2021.

The trade volumes were impacted largely due to supply-side constraints, led by high prices of e-auction coal.

REC (renewable energy certificates) volumes at 1.2 BU during the third quarter of FY2022-23 witnessed a de-growth of 68 per cent on a YoY basis as the year-ago period had exceptionally high REC volumes to fulfil the pent-up demand caused by stay on REC trading by APTEL for a period of 16 months, it stated.

In the quarter, the price of e-auction coal continued to be high. While the quarterly average price premium declined from 293 per cent in the second quarter of FY2023 to 242 per cent in the third, it was considerably higher as compared to 35 per cent for the special forward e-auction price for the power sector in FY2022. As a result of this, input cost for gencos continued to be high.

Continuing high spot e-auction coal prices led to the average clearing price in the Day-ahead market at Rs 4.56 in Q3 FY2023, while lower from Rs 5.40 in the previous quarter, but still high to provide optimization potential for Discoms and Open Access consumers, it stated.

Improving coal inventory and further reduction in e-auction coal prices are expected to result in a decline in power prices on the Exchange and provide further cost optimisation opportunities to Discoms and Open Access consumers. This is expected to result in higher volumes on the Exchange.

On the Gas market front, IGX traded a total volume of 24.42 million MMBtu during the December quarter, which was a 568 per cent YoY increase. This growth was largely on the back of participation from major domestic gas producers and an increase in the number of participants.

JSW Energy Q3 Results: Net profit falls 45% to Rs 180 crore in Q3

JSW Energy on Friday reported a 45 per cent decline in its consolidated net profit to Rs 180 crore for the December 2022 quarter.
"(consolidated) Profit After Tax (PAT or net profit) stood at Rs 180 crore (in the quarter ended on December 31, 2022), which is lower YoY (year-on-year) compared to a PAT of Rs 324 crore in the corresponding period of the previous year," a company statement said.

The company stated that during the quarter (October-December 2022), its total revenue increased by 18 per cent to Rs 2,350 crore from Rs 1,984 crore a year ago, due to higher realisation (as higher fuel costs are passed through in nature for LT PPAs (long term power purchase agreements).

The EBITDA for the quarter was 18 per cent lower at Rs 727 crore vis-a-vis Rs 882 crore in the corresponding period of the previous year.

It explained that the decrease is primarily due to lower short-term sales YoY, partly offset by the contribution from Vijayanagar Solar and higher other income in the quarter.

Finance costs during the quarter increased by 9 per cent to Rs 214 crore due to additional borrowings (for ongoing growth capex) and an increase in weighted average cost of debt to 8.29 per cent with the rising rates cycle.

The consolidated net worth and consolidated net debt as on December 31, 2022, were Rs 18,392 crore and Rs 9,840 crore, respectively, resulting in a Net Debt to Equity ratio of 0.54x.\The receivables days' declined to 69 days on December 31, 2022, from 75 days year-on-year.

Liquidity continues to be strong with cash balances at Rs 3,029 crore as of December 31, 2022. The company has one of the strongest balance sheets among its peers with a large headroom to pursue value accretive growth opportunities, it stated.

Its long-term sales during the quarter stands at 4,179 MUs (million units), flat YoY as incremental generation from Vijayanagar Solar (225 MW) and SECI X (27MW) was offset by lower Hydro generation (due to weaker hydrology YoY).

Short-term sales during the quarter came at 95 MUs versus 323 MUs in Q3 FY22 due to lower merchant market sales, it stated.

Ramkrishna Forgings Q3 Results: Net profit grows 35% to Rs 61 crore

Ramkrishna Forgings on Friday posted a 35 per cent rise in its December quarter consolidated net profit to Rs 61.04 crore, mainly on account of higher revenues.

The firm had clocked a net profit of Rs 45.35 crore in the year-ago period, it said in a regulatory filing.

The company's revenue from operations rose 30 per cent to Rs 777.48 crore in the October-December quarter of the ongoing fiscal from Rs 601.32 crore a year ago.

Naresh Jalan, MD of Ramkrishna Forgings Limited, said, "Our diverse and robust business model has led to a sustained growth momentum, primarily driven by our strategic decision to enhance product offering coupled with high customer demand. Our global geographical outreach helped us to secure new orders and further strengthen the order book".

In the first nine months of FY23, the company won contracts worth Rs 774.70 crore spanning across various geographies, including North America and Europe, and reduced gross debt by 23 per cent to Rs 1,286.89 crore, he said, adding the focus will remain on making the company a debt-free entity by FY25.

According to the statement, during the December 2022 quarter, the company entered into a share purchase agreement to acquire 51 per cent shares of EV maker TSUYO Manufacturing Private Limited.

The company is also in the process to become an auto component manufacturer by acquiring JMT Auto.

"The Resolution plan to acquire JMT Auto has been approved by the Committee of Creditors. This acquisition is subject to obtaining necessary approval from the Principal Bench of the National Company Law Tribunal, New Delhi," it said.

The company also declared an interim dividend of Rs 0.50 per share for FY23. January 31, 2023, has been fixed as the record date for payment of the third interim dividend to eligible shareholders.

Kolkata-based Ramkrishna Forgings is a manufacturer and supplier of closed die forgings of carbon and alloy steel, micro-alloy steel and stainless steel forgings.

Inputs from PTI