JSW Energy, which today reported 18.7 per cent increase in consolidated net income at Rs 366.53 crore for the June quarter, is planning to acquire around Rs 5,000 crore worth of stressed assets.
“We have been evaluating interesting opportunities for inorganic growth. With significant assets in the sector being stressed, a meaningful engagement with the lenders will be essential to evaluate and conclude deals.
“We are planning to acquire nearly Rs 4,000-5,000 crore worth of assets in the future,” JSW Energy Chairman Sajjan Jindal told reporters on the sidelines of the company’s AGM.
The company has acquired assets worth Rs 12,000-13,000 crore in the last 2-3 years and it is currently evaluating 8-9 projects, he added.
JSW Energy, which has bought two hydel power projects of the debt-ridden Jaiprakash Power Ventures in Himachal Pradesh, including the 300-mw Baspa-II and 1,091-mw Karcham Wangtoo, for Rs 9,700 crore, is looking at expanding its hydel portfolio through acquisitions.
“Currently, our focus will be on growing our hydel portfolio. We will also consider opportunities in the wind and solar sector, but that will be at a later stage,” he said.
During the first quarter ended June 30, net generation rose 48 per cent, primarily due to generation from hydel plants acquired in 2015-16 and improved performance of the Ratnagiri plant.
But these gains were partly offset by maintenance shutdowns at Vijayanagar and Barmer plants and low scheduling since June.
The 300-mw Baspa-II project achieved its highest-ever generation in the June quarter since its commissioning. The plant had a gross generation of 454 million units.
Merchant sales in the quarter were 2,397 million units, while sales under long-term PPAs were 4,019 MUs.
On the industry outlook, Jindal said: “More states have joined the Uday scheme (meant for revival of debt-laden discoms) and this should help in gradually improving their operations and capacity to buy more power in the near future.
“Weak merchant power prices and recent hardening of international coal prices are expected to put pressure on margins. We expect the merchant demand and prices to remain benign unless pick-up in economic activity drives significant demand improvement,” he said.