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Sajjan Jindal-led JSW Energy today reported a 40 per cent drop in consolidated net profit to Rs 217.18 crore in the first quarter ended June 30, mainly on account of decline in revenues and higher fuel costs.
The company's consolidated net profit was Rs 364.89 crore in the April-June quarter last fiscal.
During the first quarter under review, total income from operations slipped 9 per cent to Rs 2,232 crore as against Rs 2,450 crore in the corresponding quarter of the previous year.
"The decline is revenues is primarily on the back of lower generation from the coal-fired plants and subdued merchants prices which reduced to Rs 4 per unit.
"However, the total impact of the fall in the revenues was offset by our efforts to improve efficiency, reduce operational and finance costs," JSW Energy Joint Managing Director Prashant Jain told reporters here.
The fuel cost for the quarter increased by 8 per cent year-on-year to Rs 1,120 crore following a rise in international prices of coal.
The finance costs declined to Rs 396 crore from Rs 429 crore as interest rate reductions were achieved through refinancing arrangements as well as prepayment of borrowings.
The consolidated net worth and consolidated net debt as on June 30, 2017 stood at Rs 10,696 crore and Rs 13,686 crore, respectively, resulting in a net debt to equity ratio of 1.28 times.
During the quarter, consolidated deemed PLF (plant load factor or capacity utilisation) was 76 per cent as against 78 per cent in the corresponding quarter of the previous year.
The merchant sales during the quarter were at 1,834 million units and the sales under long term power purchase agreement were 4,301 million units.
During Q1, JSW Energy's 1,200 MW plant in Ratnagiri operated at an average deemed PLF of 71 as against an average deemed PLF of 86 per cent in the corresponding quarter of the previous year, while the Karcham Wangtoo and Baspa II Hydro plants achieved highest ever generation.
"We hope we will be able to sign long term power purchase agreement for the hydro plants and also expect to enlarge our portfolio for the Ratnagiri plant. By this fiscal end, we hope the three-fourth of our capacity will be tied-up for long term PPA," Jain said.
Asked about the company's proposals to acquire assets of Jaiprakash Power Ventures and Monnet Ispat & Energy, Jain said, "There are certain issues that need to be addressed in these deals and it seems difficult. However, we will continue to look at opportunities to consolidate our power business. We are looking at assets close to coal mines."
Meanwhile, the board has approved appointment of CFO Jyoti Kumar Agarwal as an Additional and Whole-Time Director for a period of five years, subject to the approval of the members of the company.