JSW Energy Q2 net profit up 54% to Rs 492 crore

Total income rose to Rs 2,513 crore

JSW Energy today beat the street estimate to post 54% rise in its consolidated net to Rs 491.9 crore for the quarter ended September 30, 2015 compared to Rs 318.6 crore.

Total income from operations grew by 12% to Rs 2,513 crore against Rs 2,251 crore. EBITDA before exceptional items was reported at Rs 1,088 crore against Rs 973 crore.

The improved performance is due to increase in generation to 5,637 million units against 5,236 million units and also following the 13% reduction in the fuel cost to Rs 1,070.81 crore from Rs 1,223.79 crore.

The share price of the company was down by 3.62% at Rs 87.85 on the Bombay Stock Exchange.

This is due to lower thermal generation and decline in the FOB cost of imported coal driven by lower international prices, partly offset by depreciation in the Indian rupee versus the US dollar. The merchant sales during the quarter were 2,477 million units and the sales under long term power purchase agreement were 3,080 million units.

During the quarter, the company achieved an average deemed plant load factor (PLF) of 83% against 87% in the corresponding quarter of previous year. The PLFM was lower primarily due to scheduled major overhauling at one unit of Vijayanagar plant. However, the average deemed PLF improved to 83% from 75% due to improved off take.

However, the purchase of power has risen to Rs 209.08 crore against Rs 18.13 crore.

The company has concluded the acquisition of 100% stake in Himachal Baspa Power Company Limited (HBPCL) which has 300 MW Baspa II and 1091 MW Karcham Wangtoo hydroelectric projects both located at Himachal Pradesh for an asset value of Rs 9,275 crore from Jaiprakash Power Ventures Limited (JPVL). Consequently, HBPCL has become a 100% subsidiary of the Company effective September 08, 2015.

The company refinanced Rs 2,979 crore of term debt from banks, financial institutions at Himachal Baspa Power Company Limited with extended repayment terms and at lower interest rate.

Further, Karcham Wangtoo plant of HBPCL has filed petition for determination of final tariff with Central Electricity Regulatory Commission (CERC) and pending the receipt of final tariff order, the revenue from sale of power under long term power purchase agreements are being recognised as per the tariff petition filed with CERC. The compensation of Rs. 150 crore received by HBPCL, as per the terms of the Share Purchase Agreement, has been disclosed as an exceptional item.

The company said that the uncertainties over long term procurement of power by the discoms, congestion in interstate power transmission and high transmission and distribution losses and current poor health of the discoms continue to impact the sector.

However, the company in its outlook said despite challenges the government's efforts to revitalise the economy and focus on manufacturing and infrastructure growth should gradually boost power demand in the coming quarters.