Sr.

No Ratio

Current Ratio
Reason: This ratio tells us if the firm's current assets are sufficient to meet its
short term liabilites.

1 Interpretation: Starting FY'18, the firm had a healthy current ratio of ~1.6
making it easy for the firm to meet its current liabilites. However, this has
declined over the next two years and come down to ~1 making it slighlty
concerning for shareholders.

Quick Ratio / Acid test ratio

Reason: Similar to current ratio, this ratio tells us the firm's ability to meet its
current liabilities by liquidating its current assets. However, this excludes
inventory from total current assets since inventory is something which might not
2 get sold easily in the event of liquidation and it is also prone to obsolesence

Interpretation: This ratio albiet <1 (which is not a very healthy sign), has showed
an upward trend in the last 3 years, showing that the firm has improved its
ability to meet its short term obligations without selling off its inventory

Debt to Equity Ratio

Reason: This ratio tells us how much is the debt (total liabilities) of the firm as a
proprtion of its equity, i.e. how leveraged is the firm. A ratio lower than 1 is
ideally healthy since it implies that the company has financed its assets more by
its own money as opposed to money that is owed to external parties. However,
firms which have a high fixed asset requirement (e.g. energy firms) are typically
3 highly leveraged.

Interpretation: The ratio for JSW has fallen over the last 3 years thereby
showing an improvement in its balance and showing that the company has
been paying off its obligations better.

Debt to Capital Ratio

Reason: Similar to Debt to Equity ratio, this tells us how much is the firm
leveraged. This makes it possible for us to asses the risk in investing in the
company since higher the ratio, more likely is the chance of shareholders not
4 getting their money back

Interpretation: The ratio for JSW has fallen over the last 3 years thereby
showing an improvement in its balance and showing that the company has
been paying off its obligations better.

Interest Coverage Ratio

Reason: The ratio tells us about the firm's ability to meet its interest expenses. It
is especially important to analyse this ratio in highly leveraged firms such as
JSW. The ratio shows how many times can the firm meet its interest expenses
5 using its profits

Interpretation: JSW has showed a healthy upward trend in this ratio making it
clear that the firm has been managing its debt really well and is becoming less
riskier for shareholders.
 Reason: The ratio tells us about the firm's ability to meet its interest expenses. It
is especially important to analyse this ratio in highly leveraged firms such as
JSW. The ratio shows how many times can the firm meet its interest expenses
5 using its profits

Interpretation: JSW has showed a healthy upward trend in this ratio making it
clear that the firm has been managing its debt really well and is becoming less
riskier for shareholders.

Net Profit Margin

Reason: This ratio has been chosen to assess the percentage of revenues the
firm is being able to convert into net profits. Profits are ultimately what the
shareholders desire, hence, it is important for a firm to consistently deliver a
6 higher margin on its revenues

Interpretation: JSW has increased its profit margin from 1% in 2018 to 13% in
2020, which is commendable and shows that the firm is focusing a lot on
reducing its expenses and delivering profits.

Operating Profit Margin / EBIT Margin

Reason: The ratio has been chosen to asses the operating efficiency of JSW.
This ratio tells us how efficient the firm is in manging its operating costs and
shows how much operating profit it is earning for every rupee of revenue.
7
Interpretation: JSW has increased its operating profit margin from 20% in 2018
to 24% in 2020, which is commendable and shows that the firm is focusing a lot
on reducing its operational expenses and delivering profits.

Return on Equity

Reason: The ratio tells us how much return is being generated by the equity
capital employed in the firm. It can be used as an indicator of the company's
share performance.
8
Interpretation: While we will not be able to comment on the absolute percentage
ROE in isolation, the 3 year trend for JSW shows a healthy upward trend in
ROE implying that JSW has been generating consistently better returns for its
shareholders.

Fixed Asset Turnover Ratio (only Plant, Property & Equipment and Capital WIP
haas been chosen in the formula since those are the only fixed assets directly
being used to generate sales)

Reason: This ratio tells us how efficiently the fixed assets of the firm are being
managed to generate revenue.
9
Interpretation: Although JSW has shown an upward trend in this ratio from 2018
to 2020, the trend has not been consistent since the ratio has falled from 2019
to 2020. Hence, a longer time period needs to be evaluated to make further
comments.
 Inventory Turnover Ratio

Reason: This ratio has been chosen to analyze the number of times the firm
has sold its inventory over the year. This is seen as an indicator of how fast is
the inventory generating sales for the firm.
10
Interpretation: Over the previous 3 years, this ratio has increased for JSW
impying that its ability to generate sales using its inventory is increasing.
However, we see a decline from 2019 (10.98) to 2020 (8.22) indicating that
JSW's ability to generate sales might be reducing.

Days of inventory in Hand

Reason: This metric tells us how many days, on an average, it takes for the firm
to sell its inventory.
11 Interpretation: Over the previous 3 years, this metric has fallen marinally for
JSW indicating that it is being able to sell its inventory faster. However, there is
a sharp increase from 2019 (33.25 days) to 2020 (44.40 days) indicating that
JSW is taking much longer to sell its inventory.

Receivables Turnover Ratio

Reason: This ratio helps us asses how efficiently is the firm being able to collect
its debtor balances.

12 Interpretation: Overall, the ratio has declined from 2018 to 2020 (with a healthy
increase in 2019), impying that JSW might be taking longer to collect its
receivables thereby putting a strain on its working capital. Even revenue has
dropped from 2019 to 2020, showing that the drop in receivables turnover is not
owed to more favourable credit terms

Days of Sales Outstanding

Reason: This is used to see how many days is the firm taking to collect its
receivable balances
13
Interpretation: JSW saw a healthy drop in the time taken to collect its debtor
balances from 2018 to 2019. However, that figure has again increased to ~75
days in 2020 indicating that firm is tying up a lot of its capital in receivables
without getting a corresponding benefit in its revenue.

Payables Turnover Ratio

Reason: This ratio has been chosen to analyze how many times in the year is
JSW paying off its creditors. It helps us deicde the efficiency in paying off
creditors.
14
Interpretation: The metric for JSW has been increasing which means that JSW
is paying off its creditors at an increasing frequency over the last three years.
This could mean that either JSW has more cash available to pay its creditors or
it is not being able to negotiate favourable terms with its creditors
 Days of payables

Reason: This metric helps us analyse how many days, on an average, did the
firm take to pay off its creditors over the year. It will help us decide if the
company is releasing its cash in hand too soon or not.
15
Interpretation: This ratio has declined from 183 days in 2018 to 140 days in
2020 indicating that JSW is paying off its creditors faster and as a result not
investing its cash in hand back into the business and rather using it to pay its
creditors.

Cash conversion cycle

Reason: This metric tells us about the working capital journey of the firm. It has
been chosen to analyse how long JSW takes to convert its cash into inventory
and then to sales and eventually to cash again.
16
Interpretation: The numbers show an increasing trend in JSW's Cash
Conversion Cycle which means that the firm's working capital is deteriorating.
However, it is still -20 in 2020 which means that firm is doing well in its CCC on
an absolute basis.
 Formula Mar-20 Mar 20 Ratios Mar-19

Total Current Liabilities

4543.25 1.0 4361.56

Total Current Assets 4502.20 3108.21

Total Current Liabilities

4543.25 0.85 4361.56

Total Current Assets (excl. inventory) 3,862.62 2,653.48

Total Liabilities

13,490.07 1.16 14,115.87

Total Equity 11,621.78 11,810.21

Total Liabilities

13,490.07 0.54 14,115.87

Total Capital
25,111.85 25,926.08

EBIT

2,096.29 2.13 1,980.58

 Interest expense

982.07 1,083.65

Net Income

1,081.18 13% 684.49

Revenue 8,559.69 9,505.56

EBIT

2,096.29 24% 1,980.58

Revenue

8,559.69 9,505.56

Net Income

1,081.18 9.2% 684.49

Average Total Equity 11,716.00 11,457.99

Revenue

8,559.69 0.53 9,505.56

Average Fixed Assets (PP&E + Capital WIP)

16149.18 17140.22
 Average Inventory

547.155 8.22 495.135

Cost of Goods Sold

4,498.26 5,434.72

365 365

44.40 365
Inventory Turnover Ratio

8.22 10.98

Revenue

8,559.69 4.85 9,505.56

Average Trade Receivables

1,765.48 1,289.49

365

365 75.28 365

Receivables Turnover Ratio

4.85 7.37

Purchases

4,498.26 2.61 5,434.72

Average Trade Payables

1,721.20 2,083.33
 365

365 139.66 365

Payables Turnover Ratio

2.61 2.61

Days of inventory in hand

44.40 -19.98 33.25

Days of sales outstanding 75.28 49.51
Days of payables outstanding 139.66 139.92
Mar 19 Ratios Mar-18 Mar 18 Ratios

1.4 4259.49 1.6

2710.52

0.61 4259.49 0.51

2,174.98

1.20 15,615.17 1.41

11,105.76

0.54 15,615.17 0.58

26,720.93

1.83 1,684.46 1.25

 1,346.32

7% 84.91 1%
8,513.98

21% 1,684.46 20%

8,513.98

6.0% 84.91 0.8%

10,738.30

0.55 8,513.98 0.47

17998.875
10.98 564.22 7.82

4,413.45

33.25 365 46.66

7.82

7.37 8,513.98 5.11

1,666.99

49.51 365 71.46

5.11

2.61 4,413.45 1.99

2,222.93
139.92 365 183.84

1.99

-57.15 46.66 -65.71

71.46
183.84
CONSOLIDATED BALANCE SHEET
Mar-20 Mar-19 Mar-18
OF JSW ENERGY (in Rs. Cr.)
12 mths 12 mths 12 mths
EQUITIES AND LIABILITIES
SHAREHOLDER'S FUNDS
Equity Share Capital 1,641.90 1,640.87 1,640.05
Other equity 10,003.72 10,181.37 9,469.65
Non controlling interest -23.84 -12.03 -3.94
Total Equity 11,621.78 11,810.21 11,105.76
NON-CURRENT LIABILITIES
Long Term Borrowings 8,280.74 9,240.35 10,821.00
Other Financial Liabilities 26.76 0.17 0.26
Deferred Tax Liabilities [Net] 370.48 380.44 427.96
Other Long Term Liabilities 186.45 63.33 6.62
Long Term Provisions 82.39 70.02 99.84
TOTAL NON-CURRENT LIABILITIES 8,946.82 9,754.31 11,355.68
CURRENT LIABILITIES
Trade Payables 1,602.87 1,839.52 2,327.13
Other financial liabilities 2,842.65 2,366.19 1,802.41
Short Term Borrowings 0 0 8.19
Other Current Liabilities 48.99 84.47 55.04
Short Term Provisions 11.85 31.33 31.44
Current tax liabilities (net) 36.89 40.05 35.28
TOTAL CURRENT LIABILITIES 4543.25 4361.56 4259.49
TOTAL LIABILITIES 13,490.07 14,115.87 15,615.17

TOTAL CAPITAL AND LIABILITIES 25,111.85 25,926.08 26,720.93

ASSETS
NON-CURRENT ASSETS
Property, plant and equipment 15,217.11 16,289.96 17,296.98
Capital work-in-progress 391.32 399.97 293.53
Goodwill 639.82 639.82 639.82
Other intangible assets 855.82 894.76 940.59
Investments in an associate and a joint
10.53 - -
venture
Financial assets 3,004.58 4,015.91 4,258.79
(i) Investments 1,098.95 2,108.26 2,078.17
(ii) Loans 664.96 720.59 571.41
(iii) Other financial assets 1,240.67 1,187.06 1,609.21
Income tax assets (net) 123.85 64.15 38.09
Deferred tax assets (net) 180.54 - -
Other non-current assets 186.08 513.30 542.61
TOTAL NON-CURRENT ASSETS 20,609.65 22,817.87 24,010.41
CURRENT ASSETS
Inventories 639.58 454.73 535.54
Financial assets 3743.56 2576.73 2097.48
 (i) Investments 744.07 342.27 336.83
(ii) Trade receivables 2,103.20 1,427.75 1,151.22
(iii) Cash and cash equivalents 151.69 132.16 224.27
(iv) Bank balances other than (iii)
49.04 71.41 86.76
above
(v) Loans 250.84 178.42 178.34
(vi) Other financial assets 444.72 424.72 120.06
Other current assets 119.06 76.75 77.5
TOTAL CURRENT ASSETS 4,502.20 3,108.21 2,710.52
TOTAL ASSETS 25,111.85 25,926.08 26,720.93

Check 0 0 0
 JSW ENERGY
Consolidated Statement of Cash Flows
Mar '20 Mar '19 Mar '18

12 mths 12 mths 12 mths

Cash flow from operating activities
Net Income 1,081.18 684.49 84.91
Taxes -71.14 207.10 269.50
Deferred tax adjustable in future tariff 104.18 5.34 -16.27
Profit before taxes 1,114.22 896.93 338.14
Add: Depreciation and Amortization 1,168.05 1,163.69 966.08
Finance cost 1,051.07 1,192.40 1,455.91
Interest income earned on financial assets that
-184.12 -180.95 -279
are not designated as at FVTPL
Interest income earned on other assets -1.71 -41.79 -47.95
Dividend income from investments designated
-28.72 -22.41 -15.76
as at FVTOCI
Share of profit of joint venture -28.04 -31.93 49.49
Net gain arising on financial instruments
-0.6 -2.43 -9.99
designated as at FVTPL
Writeback of provisions no longer required -0.17 -35.76 -5.89
Share-based payments 4.12 3.43 2.78
(Profit) / Loss on disposal of property, plant and
-2.85 1.87 0.35
equipment
Inventory written off 0.29 - 24.85
Impairment loss recognised on loans / trade
0.41 5.43 2.04
receivables
Unrealised foreign exchange (gain) / loss (net) -11.29 9.02 4.22

Allowance for impairment of Leasehold land 2.18 - 5.65

Allowance for impairment of advances 10.04 - -
Allowance for impairment of goodwill 5.21
Allowance for impairment of intangible assets 6.27
Allowance for expected credit loss on interest
- 32.69
receivable
Contingent consideration payable written back -177.48 - -172.71

Loan written off 116.02 - 574.19

Operating profit before working capital changes 3,031.42 2,990.19 2,903.88
Adjustments for movement in working capital:
Increase in trade receivables -676.92 -278.82 1,031.11
(Increase) / Decrease in inventories -185.14 80.81 57.37
(Increase) / Decrease in current and non current
-72.77 86.48 45.69
assets
Increase / (Decrease) in trade payables and
160.56 -186.64 51.36
other liabilities
Cash flow from operations 2,257.15 2,692.02 4,089.41
Income taxes paid (net) -175.11 -200.68 -155.6
NET CASH GENERATED FROM OPERATING
2,082.04 2,491.34 3,933.81
ACTIVITIES
 Cash Flow from Investing Activities
Purchase of property, plant and equipments
-120.97 -233.47 -120.76
(including CWIP and capital advances)
Proceeds from sale of property, plant and
27.61 15.47 1.99
equipments
Loans given -9 -150.68 -1,208.49
Loans repaid 145.74 0.74 728.14
Advances given - - -130.9
Advances repaid 0.07 50 122.77
Interest received 210.08 233.81 270.12
Dividend income from investments designated
28.72 22.41 15.76
as at FVTOCI
Investments in government securities -1.47 -1.39 -1.53
Bank balances other than cash & cash
20.51 8.61 108.08
equivalents
NET CASH GENERATED FROM / (USED IN) INVESTING 301.29 -54.5 -214.82
ACTIVITIES

CASH FLOW FROM FINANCING ACTIVITIES

Proceed from fresh issue of equity shares under
ESOP Plan 6.96 5.15 0
Proceed from transfer of treasury shares under ESOP
Plan -1.57 -0.01 73.34
Proceed from non-current borrowings 750 200 5,058.27
Repayment of non-current borrowings -1,457.01 -1,550.27 -7,548.91
Interest paid -1,062.14 -1,173.74 -1,431.75
Dividend paid (including corporate dividend tax)
-197.86 -4.31 -118.54
Net Cash Used in Financing Activities -1961.62 -2523.18 -3967.59

NET INCREASE / (DECREASE) IN CASH AND CASH

EQUIVALENTS 421.71 -86.34 -248.60

Cash and Cash Equivalents - at the Beginning of the

Year 474.43 561.1 809.61
Fair value gain on liquid investments 0.48 1.51 0
Effect of exchange rate changes on cash and cash
equivalents -0.86 -1.84 0.09

Cash and Cash Equivalents - at the end of the Year 895.76 474.43 561.10
Investment in liquid mutual funds 744.07 342.27 336.83
Reported Cash and Cash Equivalents - at the end of
the Year 151.69 132.16 224.27

Check 0.00 0.00 0.00

 JSW Energy
Consolidated Profit & Loss account ------------------- in Rs. Cr. -------------------
Mar 20 Mar 19 Mar 18
12 mths 12 mths 12 mths
INCOME
Revenue from operations 8,272.71 9,137.59 8,048.96
Other income 286.98 367.97 465.02
Total Income 8,559.69 9,505.56 8,513.98

EXPENSES
Fuel cost 4,460.51 5,356.22 4,338.87
Purchase of power 37.75 78.5 74.58
Employee benefits expense 242.96 243.58 215.09
Finance costs 1,051.07 1,192.40 1,455.91
Depreciation and amortisation expense 1,168.05 1,163.69 966.08
Other expenses 574.63 606.17 657.88
Total Expenses 7,534.97 8,640.56 7,708.41

Share of profit of joint venture and an associate 28.04 31.93 -49.49

Profit before exceptional items, tax and deferred

tax adjustable in future tariff 1,052.76 896.93 756.08

Exceptional Items -61.46 0.00 417.94

Profit before tax and deferred tax adjustable in

future tariff 1,114.22 896.93 338.14

Tax expense -71.14 207.10 269.50

Current tax 111.91 179.39 210.76
Deferred tax -183.05 27.71 58.74
Deferred tax adjustable in future tariff 104.18 5.34 -16.27

Profit for the year 1,081.18 684.49 84.91

EARNINGS PER SHARE
Basic EPS (Rs.) 6.7 4.24 0.48
Diluted EPS (Rs.) 6.7 4.24 0.48

Finance Costs 1,051.07 1,192.40 1,455.91

Interest expense 982.07 1,083.65 1,346.32
Other Borrowing costs 69.00 108.75 109.59