JSW Energy posted a net profit of Rs 380 crore for the third quarter ended December 31 versus the Bloomberg estimate of Rs 338 crore. The year-on-year increase of 87% was mainly due to improvement in the operational performance of the company that has a presence in power, mining and industrial gas.
Revenue increased from Rs 211.6 crore in Q3FY14 to Rs 234.7 crore in Q3FY15. JSW Energy’s plant load factor improved from 83% in the corresponding period last year to 86% in Q3FY15 as the “company was able to schedule higher PLF for its Vijayanagar and Ratnagiri units” compared to the same period last year. Thanks to enhanced efficiency in the overall operating matrix and stabilisation of operations at the Barmer unit, JSW Energy achieved a net generation of 5,336 million units.
Total income from operations stood at Rs 2,381 crore, an 11% rise from the corresponding period last year. Higher volumes and a reduction in fuel costs helped it improve its earnings before interest, tax, depreciation and ammortisation (ebitda) by 19% to Rs 1,012 crore. The overall net debt-equity ratio stood at 1.16, with a consolidated net debt of Rs 8,803 crore.
Following the approval of board members, JSW Energy is looking to raise Rs 5,000 crore through a combination of equity instruments in the domestic and international market for “organic and inorganic growth opportunities, long term working capital, capital expenditure requirements and other general corporate purposes.” Also on the cards is the “demerger of the power trading business from JSW Power Trading Company (JSWPTC) into JSW Green Energy and merger of residual JSWPTC into the company with the objective of creating a focussed power trading business and consolidating all the investments in the company.”
The improving economic outlook, coupled with falling commodity prices globally, the company said, “are expected to have a favourable impact on the power sector in India going ahead.”
JSW Energy shares inched up 2.68% to close at Rs 124.30/share on the BSE. The Sensex lost 0.21% to end at 29122.27 on Monday.