Lights turn dimmer at JSW Energy

Lower utilisation at Vijaynagar leads to uncertainty on earnings

The JSW Energy stock has given up most of the 19 per cent gains it saw from the March low, following a weak March quarter (Q4) performance and worry over a surge in capital expenditure (capex).
 
Earlier, a spurt in merchant power demand and rates had boosted sentiment on the power producer, which sells a large chunk of its output in the short-term market. In Q4, as rising energy costs affected profit, low utilisation (plant load factor or PLF) has brought back focus on unused capacity. This is leading to uncertainty on earnings, and keeping analysts bearish on the