JSW Energy Q1 FY18 Net Down 41%; Weak Demand, High Fuel Cost Impact Performance
EBITDA saw a decline of 16 per cent from Rs 1159 crore in the June quarter last year to Rs 971 crore, attributed to the decline in the revenues and increase in coal costs which offset the savings in operations and maintenance costs
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Sajjan Jindal promoted JSW Energy on Friday (11 August) reported a steep drop of around 41 per cent in its consolidated net profit from a year ago at Rs 217 crore for the June quarter, largely due to lower power generation from coal fired plants and subdued merchant realisations.
Consolidated net profit in the same quarter a year earlier was Rs 367 crore, JSW Energy said in a BSE statement. EBITDA saw a decline of 16 per cent from Rs 1159 crore in the June quarter last year to Rs 971 crore, attributed to the decline in the revenues and increase in coal costs which offset the savings in operations and maintenance costs, as added by the statement.
Total income from operations came down to Rs 2232 crore, from Rs 2450 crore in the corresponding period of the previous fiscal, a decrease of 9 per cent.
The company's consolidated deemed PLF (plant load factor or capacity utilisation of power plants) was 76 per cent as against 78 per cent a year ago. The Vijaynagar and Ratnagiri plant achieved an average PLF of 69 per cent and 71 per cent, down from 74 per cent and 86 per cent, respectively compared the previous year.
JSW Energy's net generation was 6400 million units (MUs) in the June quarter, down from 6648 MUs in the previous year. The fuel cost for the quarter increased by 8 per cent year on year to Rs 1120 crore, due to increase in the prices of international coal.
The consolidated net worth of the company as at June 30, 2017, stands at Rs 10,697 crore and a Net Debt of Rs 13,689 crore.
"Electricity demand in India continues to be outpaced by growth in supply. Muted industrial activity coupled with excess supply has led to the lack of PPAs and consequently weak PLF, besides softening of merchant electricity prices", says the company statement.
The Board of Directors in the meeting have approved the company's entry into the business of electric vehicles, electrical battery, energy storage systems and charging infrastructure directly by setting up one or more subsidiaries.