JSW Energy first quarter net profit declines 6% to Rs 201 crore

JSW Energy on Friday reported 5.6 per cent decline in consolidated net profit at Rs 201 crore for June quarter 2021-22.

"On a comparable basis, adjusting for one-time finance charges, Profit After Tax (PAT) stood at Rs 261 crore (in April-June 2021) compared to reported PAT of Rs 213 crore, in corresponding quarter of previous year. Reported PAT for the quarter stood at Rs 201 crore," a company statement said.

During the quarter, total revenue stood at Rs 1,860 crore as against Rs 1,887 crore in April-June 2020-21, primarily due to reduction attributable to the impact of job work at the standalone entity, partly offset by increase in long-term sales and other income.

The fuel cost in the quarter fell 11 per cent YoY (year-on-year) to Rs 812 crore, primarily attributable to impact of job work at standalone entity, partly offset by increase in long-term sales at standalone entity as well higher coal prices.

Reported Finance cost during the quarter increased 21 per cent YoY to Rs 290 crore from Rs 240 crore in the corresponding quarter of previous year.

This is primarily due to one-time expenses of Rs 92 crore during the quarter towards prepayment charges and write-off of unamortised other borrowing cost relating to repayment of rupee denominated loans of JSW Hydro Energy Ltd, it said.

The loans have been replaced with a dollar denominated green bond issued in the quarter, it added.

The consolidated net worth and consolidated net debt as on June 30, 2021 were Rs 15,939 crore and Rs 6,565 crore, respectively, resulting in a net debt to equity ratio of 0.41X.

Its power generation stood at 5,141 million units in June quarter compared to 4,930 million units in thge same period a year ago.

JSW Energy is pursuing a growth strategy to expand from the current capacity of 4.6 GW to 10 GW by 2024-25 and 20 GW by 2029-30, with the entire capacity addition being via renewables. About 2.5 GW of renewable energy capacity is under construction in full swing, it said.

The company's board at its meeting held on July 29, 2021 granted its in-principle approval for evaluating various options for re-organising the company's Green (Renewable) Business and Grey Business (Thermal).

A sub-committee has been constituted to examine and evaluate the pros and cons of various options in consultation with advisers.