JSW Energy clocks Rs 367 cr in Q1

Sajjan Jindal led JSW Energy's net for quarter ended June 30 rose by 19% to Rs 367 crore against Rs 309 crore for the corresponding quarter last year. The company has missed the Bloomberg estimate of Rs 402 crore.

Its consolidated turnover was up 15% at Rs 2,492 crore against Rs 2,167 crore. It was primarily due to the addition of hydro units acquired during the second quarter of the previous year, partly offset by lower realisation during the quarter.

Meanwhile, JSW Energy said it has withdrawn from the acquisition process of Monnet Power. The lenders to the Monnet Power have rejected an offer to buy out majority stake.

The company had entered into an agreement with Monnet Ispat & Energy in July 2015 to acquire a majority stake in its subsidiary Monnet Power. However, two companies had not disclosed a deal size.

The net generation was up 48% at 6,648 million units (MUs) against 4,480 MUs due to generation from hydro power plants acquired during FY2016 and improved performance of Ratnagiri plant. However, the merchant sales were 2,397 MUs (37% of the volume) while the sales under long term power purchase agreement were 4,019 MUs (63% of volume). The company stock on BSE closed at Rs 79.75 down 4.55%.
 

The total income from operations was Rs 2,450 crore against Rs 2,095 crore and EBIDA was Rs 1,159 crore against Rs 887 crore. It was higher due to overall higher generation and decline in the fuel cost. The total comprehensive income increased by 76% at Rs 497 crore against Rs 283 crore. This was due to profit on fair valuation of investments routed through other comprehensive income.

The consolidated net worth was at Rs 10,232 crore and consolidated net debt at Rs 13,836 crore resulting in a net debt to equity ratio of 1.35 times.

The fuel cost increased to Rs 1,041 crore against Rs 983 crore, up 6% due to increase in thermal power generation, rise in the transfer price of lignite at Barmer and currently depreciation. It was partly offset by the decrease in the landed cost of imported coal principally due to a softening of the international prices.

The company in its outlook said the government's resolve to provide uninterrupted power to all on a 24x7 basis will drive a robust energy growth in the coming years.

However, weak merchant power prices and recent hardening of international coal prices are expected to put pressure on margins. The company expects the merchant demand and prices to remain benign unless pick up in economic activity drives significant demand improvement.