JSW Energy Q1 net up 3.37 pct on improved realisations, margins

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Mumbai | Published: August 7, 2019 4:31:47 AM

The improvement in net profit was positively impacted by lower finance cost, which went down to `270 crore from `313 crore a year ago, led by repayment and prepayment of debt.

JSW Energy net profit, JSW Energy rating, JSW Energy annual report, JSW Energy earnings metrics, market news, JSW Energy stocks, JSW Energy shares, JSW Energy buy shares,The earnings before interest taxes depreciation and amortisation (Ebitda) were higher by 4.25% on-year at `809.25 crore. The operating margins were higher by 0.66 basis points from the year-ago period at 33.54% on reduced fuel cost.

JSW Energy, the Sajjan Jindal-led firm, reported a 3.59% year-on-year decline in total power generation for the April-June quarter of 2019 as the major power plants reported decline in plant load factor (PLF) on account of short-term power sales during the quarter. The total PLF for the June quarter stood at 69% as against 69.8% a year ago.

However, the consolidated net profit for the June quarter was higher by 3.37% on-year at `237 crore on better realisations on sale of power and marginal increase in operating margins. But, the profit numbers missed the Bloomberg estimate of `271 crore.

The improvement in net profit was positively impacted by lower finance cost, which went down to `270 crore from `313 crore a year ago, led by repayment and prepayment of debt. The consolidated net debt as of June 30 stood at `10,221 crore, while net debt to equity was at 0.86 times. Total income for the quarter rose 1.4% on year to `2,464 crore.

The earnings before interest taxes depreciation and amortisation (Ebitda) were higher by 4.25% on-year at `809.25 crore. The operating margins were higher by 0.66 basis points from the year-ago period at 33.54% on reduced fuel cost.

The fuel cost for the period was lower by 1.64% on-year to `1,366 crore as the landed price of imported coal dropped during the April-June quarter. The company is majorly importing its coal requirement from South Africa, Mozambique, Colombia and Indonesia. Off late, the company has shifted its focus to high gross calorific value e from South Africa and Mozambique compared with Indonesia earlier, said Sharad Mahendra, chief operating officer, JSW Energy.

The landed price of imported coal has dropped to $75/tonne compared with $110 per tonne a year ago.

Company’s Vijayanagar thermal power plant in Q1FY20 produced 662 million units against 960 million units a year ago. The Ratnagiri plant produced 1,954 million units compared with 2,032 million units, while Barmer plant produced 1,379 million units compared with 1,651 million units a year ago.

The net power generation for the quarter ended June 31 was low at 5,867 million units against 6,086 million units a year ago. The company’s short-term sales during the quarter were lower at 722 million units compared to 1,147 million units a year ago, primarily due to lower short term sales at both Vijayanagar and Ratnagiri power plants.

The company also plans to revive its plants to enter the solar generation segment as the company believes the time is ripe and the aggression on part of developers during bidding phase has come down. The power generator will participate in both SECI-NTPC and state-based tenders, going ahead. The company has also submitted its expression of interest invited by Ind-Bharat for its 700 MW power project in Odisha.

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