JSW Energy today reported 59 per cent decline in its consolidated net profit at Rs 217.39 crore for the September quarter as against a year ago due to lower power output and higher fuel costs.
“The group has posted a net profit after taxes, minority interest and share of profit of associates of Rs 217.39 crore for the quarter ended September 30, 2016 whereas the same was at Rs 533.77 crore for the quarter ended September 2015,” JSW Energy said in a BSE filing today.
Its earnings before interest, taxes and amortisation (EBITA) were lower due to reduced generation and realisation, coupled with higher fuel costs.
EBITA stood at Rs 1,014 crore in the second quarter, compared with Rs 1,239 crore in the same period a year ago.
According to the statement, total income is Rs 2,098.64 crore for the quarter under review as against Rs 2,750.98 crore a year earlier.
The company said its Karcham Wangtoo plant of Himachal Baspa Power Company has filed petition for determination of final tariff with the CentraI Electricity Regulatory Commission (CERC) and pending the receipt of final tariff order, the revenue from sale of power under long-term power purchase agreements are being recognised in terms of expected tariff as per the available guidelines.
It further said the hydro projects were acquired in September 2015. Hence, figures for the corresponding quarter and half-year of the previous year are not comparable.
The company’s net power generation rose 11 per cent to 6,276 million units in the September quarter compared with 5,637 units a year ago due to increased output from hydro power plants acquired in September 2015 despite low generation at other units.
The merchant sales during the quarter were 1,321 million units (22% of volume) while the sale under long-term PPA was 4,635 million units (78% of volume).
On power sector outlook, the company said the electricity demand grew at a tepid rate in the last quarter, largely due to seasonal factors.
It further said increase in power supply has outpaced growth in demand and has resulted in reducing demand-supply gap across the country.
JSW Energy expects margins to remain under pressure as international coal prices have seen a sharp uptick in recent months along with low merchant prices and weaker utilisation of plants.
“Moreover, delays and lack of progress on conclusion of recent power take-off bids are expected to impact the generation volumes for the year,” the power firm said.
The company has an operational capacity of 4,531 MW and has entered into definitive agreements to acquire additional 1,500 MW of operating coal-based thermal plants.