JSW Energy Q3 profit jumps 87 pct to Rs 380.19 crore

By: | Published: February 2, 2015 9:21 PM

JSW Energy, an arm of JSW Group, today reported an 87 per cent increase in consolidated net profit at Rs 380.19 crore...

Jaiprakash Power Ventures, JPVL, convertible bonds, power projects, Sajjan JindalJSW Energy posted a net profit of Rs 203.27 crore in the corresponding quarter last fiscal. (Reuters)

JSW Energy, an arm of JSW Group, today reported an 87 per cent increase in consolidated net profit at Rs 380.19 crore for the quarter ended December last year, mainly on the back of improved operational performance and higher generation.

It had posted a net profit of Rs 203.27 crore in the corresponding quarter last fiscal.

Total income during the period under review grew 10.7 per cent to Rs 2,380.83 crore as against Rs 2,150.56 crore in the year-ago period.

“The impressive operational performance is primarily due to stabilisation of operations of Barmer unit and correspondingly improved efficiencies in operating parameters,” the company said in a release.

During the quarter, JSW Energy achieved a net generation of 5,366 million units with the average deemed plant load factor (PLF) of 86 per cent.

“While there have been intermittent back downs during the non-peaks hours, the company was able to schedule power and achieve higher PLF for its Vijayanagar and Ratnagiri units compared to the corresponding quarter of previous year,” it said.

While the Vijayanagar plant achieved average PLF of 100 per cent, Ratnagiri operated at PLF of 84 per cent and Barmer at 77 per cent.

During the quarter, the merchant sales were 2,496 million units, while the sales under long term PPA stood at 2,870 million units resulting in a mix of 53 per cent long term and 47 per cent merchant.

The fuel cost for the quarter increased 16 per cent to Rs 1,236 crore compared to the corresponding quarter of the previous year, primarily due to increased generation. It was partly offset by a decline in the international prices of coal and fairly stable exchange rate, the company said.

JSW Energy’s consolidated net debt as on December 31, 2014 stood at Rs 8,803 crore.

“The international coal prices have declined in line with a steep correction in energy and commodity prices globally primarily due to a slowdown in China, continued weakness of Europe and fragility of the emerging economies.

The benign outlook of international coal prices, coupled with improving domestic economic growth prospects, on the back of policy initiatives, are expected to have a favourable impact on the power sector in India going ahead,” the company said.

It further said the government’s intent to create a favourable investment climate with major policy initiatives, aimed at generating employment and inclusive growth, provides a platform for a sustainable economic growth over the medium to long term.

“The issues confronting the power sector like fuel availability, transmission corridor congestion, distribution reforms are also expected to ease with these policy initiatives.

“These measures are likely to kick start economic growth and result in improvement of power demand and generation. This growth visibility is expected to facilitate consolidation in the power sector,” it added.

Shares of the company closed at Rs 124.30 a piece on BSE, up 2.68 per cent from the previous close.

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