JSW Energy drops after poor Q2 results

JSW Energy lost 2.49% to Rs 45.05 at 9:54 IST on BSE after net profit fell 35.82% to Rs 163 crore on 2.5% decline in total income from operations to Rs 2025 crore in Q2 September 2013 over Q2 September 2012.

The Q2 result was announced on Saturday, 26 October 2013.

Meanwhile, the S&P BSE Sensex was up 54.85 points or 0.27% at 20,738.37.

On BSE, 1.10 lakh shares were traded in the counter as against average daily volume of 3.34 lakh shares in the past one quarter.

The stock hit a high of Rs 45.65 and a low of Rs 44.50 so far during the day. The stock hit a record low of Rs 33.80 on 6 August 2013. The stock had hit a 52-week high of Rs 75 on 22 January 2013.

The stock had underperformed the market over the past one month till 25 October 2013, gaining 3.7% compared with the Sensex's 4.17% rise. The scrip had also underperformed the market in past one quarter, advancing 4.05% as against Sensex's 4.44% rise.

The mid-cap company has equity capital of Rs 1640.05 crore. Face value per share is Rs 10.

The consolidated profit after tax (PAT) of Rs 163 crore in Q2 September 2013 was after taking into account a foreign exchange (forex) loss of Rs 168 crore which has been considered as an exceptional item during the quarter due to continued and steep depreciation of the rupee against the dollar in Q2 September 2013.

EBITDA (earnings before interest, taxation, depreciation and amortization) surged 43% to Rs 893 crore in Q2 September 2013 over Q2 September 2012, primarily due to improved realisation and reduced fuel cost.

JSW Energy achieved an average plant load factor (PLF) of 69.38% in Q2 September 2013 and a net generation of 4,352 million units during the quarter on an installed capacity of 3,140 megawatts (MW). PLF during the quarter was significantly lower primarily due to frequent back down by the load dispatch centre mainly due to heavy monsoon, slackness in power procurement by utilities and annual overhauling & maintenance shutdowns of units, the company said in a statement.

The merchant sales in Q2 September 2013 were 1,507 million units, the sales under long term PPA were 2,268 million units and the balance units were banked during the quarter, JSW Energy said.

JSW Energy's total net worth and net debt as on 30 September 2013 were Rs 6598 crore and Rs 10335 crore respectively resulting in a debt equity ratio of 1.57.

On project updates, JSW Energy said that all the requisite environmental approvals for the 240 MW power project at Kutehr, Himachal Pradesh (HP), have been received. The land acquisition process for the project is progressing satisfactorily and the tendering process for the project construction has been initiated. The cost incurred till 30 September 2013 was Rs 231 crore, the company said in a statement.

The possession of land for Jalipa mines and transfer to lessee is awaited, JSW Energy said. The project cost is estimated at Rs 1800 crore (comprising both Kapurdi & Jalipa mines) and cost incurred till 30 September 2013 was Rs 1457 crore, the company said in a statement.

With regard to future business outlook, JSW Energy said that with sharp depreciation of rupee in the current fiscal and imported coal prices beginning to firm up sharply, the fuel costs are expected to go up. In the event weak demand for power persists with an anticipated increase in fuel costs, margins are expected to be under pressure, JSW Energy said in a statement.

JSW Energy is a full-spectrum integrated power company with presence across the power value chain of power generation, power transmission, mining, power plant equipment manufacturing and power trading.

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