Sajjan Jindal-led JSW Energy Thursday reported a consolidated net profit of Rs 3.87 crore for the quarter ended March 31, 2019 against a loss of Rs 483.07 crore recorded in the same period last fiscal.
The compay's revenue during the quarter under review increased 7.4 per cent to Rs 2,018.16 crore from Rs 1,879.01 crore a year ago, mainly on the back of better realisation.
For fiscal 2018-19, consolidated net profit stood at Rs 695.13 crore as against Rs 77.97 crore in 2017-18.
Revenue increased to Rs 9,505.56 crore from Rs 8,513.98 crore in 2017-18.
During January-March quarter, total generation from power plants in four locations declined to 4,216 million units from 4,355 million units in the corresponding period last fiscal.
"The demand for power was tepid at 1.6 per cent as against 7.5 per cent in Q4 2017-18, primarily due to extended winters as well as lower IIP. Our power generation also declined by 3 per cent during the period mainly because of lower merchant sales," company's joint managing director and CEO Prashant Jain told reporters here.
The merchant power prices also moderated, averaging Rs 3.18 per unit for the quarter, which was nine per cent lower on a Y-o-Y basis and 26 per cent lower on Q-o-Q basis.
He further said the generation from thermal units was higher as compared to 2017-18, while it was lower from hydro projects in Himachal Pradesh mainly because of non-availability of water.
"We at JSW have decided to focus on power and other related businesses and have shelved our plans to enter the electric vehicles business given the higher than anticipated uncertainties associated with the sector. We have decided not to pursue this business," Jain said.
"As we continue to focus on our core business, we continue to look at opportunities for organic and inorganic expansion. There are nearly 28 GW of stressed power assets and we are constantly evaluating the opportunities as we are looking for consolidation. We are also planning to revive our 240 MW Kutehr hydro power project in Himachal Pradesh at a cost of Rs 2,500 crore," he said.
The hydro plant, conceived in 2007, was put on hold as the company could not have a long-term power purchase agreement (PPA) with the buyers.
Jain further said the company has continued with its plans of de-risking the business with significant portion of open capacity now being tied-up under short-term power supply contracts in 2019-20.
He said the focus on strengthening the balance sheet continues as the company managed to reduce its net debt by Rs 636 crore during the quarter and Rs 1,228 crore during the year, through prepayment/scheduled repayments.
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