Sajjan Jindal-controlled power producer JSW Energy’s net profit plunged 36% to Rs 162.6 crore for the second quarter ended September, from Rs 254 crore in the year-ago period, as a weaker rupee and slackness in power demand from discoms more than offset gains from better realisations and lower fuel costs.
Total income from operations fell to Rs 2,025 crore, from Rs 2,077 crore in the corresponding quarter last year, hurt by lower net generation even as the company added capacity at its Barmer plant. Plant load factor (PLF), a measure of average capacity utilisation, fell to 69.38% in Q2 FY14 from 88% last year, hit by back downs due to a heavy monsoon, lower demand from discoms and annual overhauling and maintenance shutdowns.
Joint MD and CEO Sanjay Sagar said that while the PLF should rebound somewhat in the current quarter, power demand remained subdued. The weak rupee resulted in a forex loss of Rs 167.5 crore in the quarter, but officials said the hedging strategy will help shield it from further losses.