JSW Energy turns profitable in Q4 as operating margins rise

By: |
Published: May 17, 2019 12:12:40 AM

JSW Energy, which on Thursday announced its consolidated earnings for the January-March quarter of 2019, missed Bloomberg consensus estimates for both net profit and revenues.

JSW Energy turns profitable in Q4 as operating margins riseJSW Energy turns profitable in Q4 as operating margins rise

JSW Energy, which on Thursday announced its consolidated earnings for the January-March quarter of 2019, missed Bloomberg consensus estimates for both net profit and revenues. The company reported a net profit of `5.79 crore compared to a loss of `480 core a year ago, while revenues rose 7% on year to `2,018 crore.

Bloomberg had estimated a net profit of `30 crore during the quarter and a revenue of `2,041 crore.

“The total revenues rose year-on-year primarily on account of better realisations on the long-term power purchase agreements,” Prashant Jain, joint managing director & CEO of JSW Energy, told reporters.

READ ALSO | Tata Global Beverages on lookout for talent; MD says will need people to expand business

Operating margins rose around 104 basis points to 24.77% on account of better realisation on sales.

Total generation fell 3% on year to 4,216 million units as the company reported lower merchant sales. Merchant or spot sales fell to 567 million units from 848 million units a year ago.

Consolidated earnings before interest tax depreciation and amortisation (Ebitda) for the Q4FY19 rose 13.12% on year as revenues rose more than 7%.

During the March quarter, consolidated deemed PLF (plant load factor) was 54% against 51.9% a year ago, the company said. Vijaynagar plant achieved a PLF of 37.4% against 50% a year ago on account of lower short-term sales. At Ratnagiri plant, the PLF rose to 80% compared with 64.4% last year due to healthy offtake from both short-term and long-term customers. The Barmer plant PLF stood at 86.1% compared with 85.2% last year.

The company is optimistic of growth in the core power sector after it exited from the electric vehicle business and plans to acquire few stressed assets in NCLT. “We are hopeful of the IBC process and expect a lot more cases in the power sector to be resolved in the next 12-24 months, where we are evaluating few projects,” Jain said.

The company also wants to revive its 240 MW Kuther hydro power project in Himachal Pradesh, as the company believes the new government will give shape to the hydro policy after the elections.

As of December 31, JSW Energy’s net debt came down by `636 crore in Q4FY19 to `10,050 crore, while debt to equity was 0.85 times.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Switch to Hindi Edition