Private power producer JSW Energy reported a marginal rise in its profit before tax at Rs 212.65 crore on the back of higher exceptional income. Revenue and power generation for the company took a hit owing to lower power demand.
For the October to December 2019 period, profit before tax and deferred tax for the company was higher by one per cent at Rs 212.65 crore. The company’s PBT was helped by an exceptional gain of Rs 61.46 crore. Net profit for the company at the consolidated level was at Rs 404.31 crore, more than twice the figure of Rs 147.08 crore reported in the same period a year ago. Benefits on current and deferred tax helped the company’s net profit numbers.
Revenue for JSW Energy in the quarter under review dipped by 19 per cent year-on-year to Rs 2,016 crore, from Rs 2,492 crore in the same period a year back. “The dip was primarily due to lower short term sales and decline in fuel cost,” the company said.
Prashant Jain, joint managing director and chief executive officer for JSW Energy said,” It was a poor quarter in terms of power demand. However, during January up to the 22nd, power demand was up 1.7 per cent.” Net generation for JSW Energy in the December 2019 quarter was lower at 4,580 million units, against 5,116 million units a year ago. The company's Short-term sales were also lower at 541 million units, against 1,112 million units a year ago.
In October, the company said it is in exclusive talks to buy GMR Energy’s subsidiary GMR Kamalanga for an undisclosed amount. The management said on Tuesday that it will sign an agreement for the deal in the next few weeks. For its ongoing acquisition of the Ind-Barath Energy, the company expects to close the deal by the end of the June 2020 quarter.
The company added it is in the process to acquire land parcels on either lease on outright sale model to expand its solar power capacity. The management expects the recent tax cut for new power generating companies will help JSW Energy fast-track its renewable energy capacity additions plans. In addition to renewable energy, Jain added the company will look at opportunities in the commercial coal mining space when they come up for bidding.