JSW Energy quarterly profit soars to Rs 214 crore

Private power utility JSW Energy today posted a higher net profit of Rs 214.26 crore in the three months ended June 2013, primarily driven by higher income.

 

The Sajjan Jindal-led company had a net profit of Rs 3.41 crore in the year-ago period.

 

The figures are after taking into account taxes, minority interest and share of profit/loss of associates.

 

In a statement, JSW Energy said its total income from operations in the latest quarter rose to Rs 2,471.96 crore. In the 2012 June quarter, the same stood at Rs 2,191.54 crore.

 

"The fuel cost during the quarter was Rs 1,062 crore, a decrease of 8% over corresponding quarter of the previous year," it said.

 

However, the company said the steep currency depreciation during the month of June 2013 is expected to negate benefit of lower imported coal prices in the forthcoming quarter.

 

At the end of June 2013 quarter, the firm's consolidated net worth touched Rs 6,432 crore while overall debt reached Rs 10,625 crore.

 

About the power sector, JSW Energy said that policy clarity related to key issues such as standard bidding guidelines, fuel availability and long term power procurements are yet to be addressed.

 

"The imported coal prices are expected to remain benign due to subdued global demand and depreciation of currencies of the coal exporting countries against the US dollar.

 

"We expect the merchant prices to be under pressure with commissioning of additional generation capacities and slowdown in demand growth, while the congestion in transmission corridor is likely to keep prices relatively higher in southern region compared to other parts," the statement said.

 

The utility has an installed generation capacity of more than 3,140 MW.

 

JSW Energy said it has received all requisite environmental approvals and land acquisition is progressing satisfactorily for the 240 MW hydro power project at Kutehr, Himachal Pradesh. The bidding process has also been initiated, it added.

 

Addressing shareholders yesterday, Jindal had said that in the last fiscal, pending clarity on policy and regulatory issues, the company "put most of its expansion projects, with the exception of the Kutehr hydro project, on hold".

 

Shares of the company today ended at Rs 44 apiece, 0.90% lower compared to previous day close value.