JSW Energy profits dips about 15% to Rs 277 cr

Mumbai: JSW Energy today reported 14.75 per cent decline in consolidated net profit to Rs 277.45 crore for the June quarter on lower generation and marginal fall in average realisation. The company had reported net profit of Rs 325.47 crore in the April-June quarter of last fiscal, 2014-15.

Its total income for the first quarter of 2015-16 was Rs 2,106.99 crore, as against Rs 2,558.32 crore in the year-ago period – down 17.64 per cent. "The decline in profit is primarily due to lower generation and a marginal decline in average realisation," JSW said in a statement.

During the quarter, the net generation declined to 4,480 million units (MU), as against 5,006 MU in the previous year. The company achieved an average deemed plant load factor (PLF) of 75 per cent as against 84 per cent in the first quarter of last fiscal.

"The lower PLF was due to planned maintenance shutdown of identified units at Ratnagiri and Vijayanagar and weak demand leading to frequent back down," the company said.

The merchant sales during the quarter were 1,990 MU and the sales under long term PPA stood at 2,490 MU.

While Vijayanagar achieved a PLF of 81 per cent, Ratnagiri unit operated at a PLF of 66 per cent and Barmer at 80 per cent, against a PLF of 98 per cent, 68 per cent and 92 per cent, respectively in same quarter last fiscal.

The fuel cost for the quarter declined by 17 per cent year-on-year to Rs 974 crore, primarily due to lower landed cost of imported coal, which in turn was driven by a fall in the international coal prices, partly offset by currency depreciation.

JSW Energy Chairman Sajjan Jindal today said the company will complete the acquisition of the 300-MW Baspa-II and 1,091-MW Karcham Wangtoo hydroelectric projects from Jaiprakash Power Ventures by this fiscal end.

"This transformational deal will make the company the largest private sector hydro power generator in the country and the aggregate operational power generation capacity post this acquisition will enhance to 4,531 MW," he told reporters on the sidelines of company's AGM here.

He added the company will continue to focus on brownfield expansion in the future.

"There are a number of stressed assets which we are exploring for acquisition. We have decided to expand our portfolio through such acquisitions and not through greenfield mode," Jindal said, adding that the company does not have any acquisition plans on board.

On the acquisition of a majority stake in Monnet Power Company which is setting up a 1,050-MW coal fired project in Odisha, Jindal said, "We have recently signed a non-binding memorandum of understanding and are in the process of completing the due diligence."

The company has commenced enabling works for the 240-MW projects in Himachal Pradesh and expects the award of EPC contracts to be completed by the second quarter of 2015-16.

The cost incurred on the project up to June 30 is Rs 239 crore.

During the quarter, Barmer Ignite Mining Company has dispatched 1.44 MT of lignite to feed the company's power plant in Balmer. The tendering process for selection of mine development and operator for Kapurdi and Jalipa lignite mines by EIL has commenced and the evaluation of tenders is under process. The project cost incurred till June 30 is Rs 1,837 crore.