JSW Energy net nearly halves to Rs 175cr on high interest cost

JSW Energy today said its net profit for the January-March quarter plunged by 48 per cent to Rs 175 crore due to higher interest costs and depreciation on capitalisation units.
Income from operations declined 10.5 per cent to Rs 2,058 crore during the last quarter of FY14 as against Rs 2,301 crore reported in the same period last year.
Operating profit before exceptional items stood at Rs 746 crore against Rs 858 crore a year ago.
Joint managing director and chief executive Sanjay Sagar attributed the fall in numbers to the "subdued demand environment".
"The shutdown of the Barmer plant for about 45 days due to non-availability of lignite, impacted the profit numbers ... The operations at the Barmer plant is normalised now," he added.

Its average deemed plant load factor (PLF) stood at 62 per cent in the fourth quarter while net generation stood at 3,577 million units on an installed capacity of 3,140 MW.

Fuel cost for the quarter was down 2 per cent to Rs 979 crore compared to the corresponding quarter of previous year, but was whittled down by the steep rupee fall, Sagar said.
For the whole fiscal, the company had a net profit of Rs 755 crore, down 16.5 per cent due to exceptional losses and higher charge of interest and depreciation on capitalisation units.
During the last fiscal, the company had received environmental clearance for the expansion of Kapurdi mines from 3 million tonne per annum to 3.75 million tonne per annum.

"Further, the coal ministry has approved a 7-mt per annum mining plan and the forests ministry has issued the terms of reference for considering the enhancement in mining from Kapurdi to 7 million tonne," he said, adding the public hearing for this is expected to be held in first week of June.
On the outlook, he said merchant prices are expected to be under pressure primarily due to low demand.