 "JSW Q3 net dips 16% to Rs 321 cr, below market estimates")
JSW Energy's consolidated net dipped by 16 per cent to Rs 321 crore for the quarter ended December 31, 2015 against Rs 380 crore in the corresponding quarter of the previous year. This was due to higher interest and depreciation, following acquisition of hydro assets and higher provision of taxes. Company's net was below Bloomberg estimates of Rs 343.5 crore.
Total income from operations increased to Rs 2,649 crore against Rs 2,381 crore, an increase of 11 per cent driven largely by generation from hydro assets acquired from the debt ridden Jaiprakash Power Ventures. EBIDTA before exceptional items for the quarter rose by 20 per cent to Rs 1,218 crore against Rs 1,012. This was primarily driven by lower fuel costs and additional generation from the hydro assets despite provision for truing up impact at Barmer power project. The company stock on BSE closed at Rs 69.60 down 6.45% per cent.
Fuel cost was down 11 per cent to Rs 1,100 crore due to decline in the international prices of coal, partly offset by depreciation of the rupee versus the dollar.
Company's consolidated net worth was reported at Rs 8,615 crore and net debt at Rs 15,506 crore resulting in a net debt to equity ratio of 1.8 times.
The company's joint managing director, Sanjay Sagar, said net generation rose to 6,052 million units from 5,366 million units. The thermal power plants have achieved an average deemed plant load factor of 90 per cent against 87 per cent. In the case of hydro power plants, 24 per cent PLF was achieved given the impact of seasonability and availability of water.
According to Sagar, the company is still in the midst of carrying out due diligence for the possible acquisition of a majority stake in the Monnet Power Company Ltd which is setting up a 1,050 Mw (2x525 Mw) coal-fired thermal power plant located at Malibrahmani, Angul, Odisha. "We will be able to inform you about some development in this regard next month," he said.
As far as 240 Mw Kutehr hydro project in Himachal Pradesh is concerned, the company's director (finance), Pramod Menon, said the company has commenced enabling works and awarded a letter of intent to the EPC contractor. The financial closure is expected by the end of the current fiscal. The project cost is estimated at Rs 2,900 crore and the cost incurred up to December 31, 2015 was Rs 254 crore.
Sagar added that the company will continue to explore opportunities for the acquisition of stressed assets from hydro and thermal sector. "The project availability will be the deciding factor," he said. He added that the company will also look into setting up solar power project considering the recent lower bids. However, he declined to give any timeline for the same.
Menon said that as on date the company has tied up 60 per cent of its operational capacity of 4,531 Mw under the long-term power purchase agreements (PPAs) while 35 per cent was under short-term arrangement. However, he said that the company aims to tie up 90 per cent of its operational capacity for the long term and 10 per cent for merchant sale in due course of time.
Total income from operations increased to Rs 2,649 crore against Rs 2,381 crore, an increase of 11 per cent driven largely by generation from hydro assets acquired from the debt ridden Jaiprakash Power Ventures. EBIDTA before exceptional items for the quarter rose by 20 per cent to Rs 1,218 crore against Rs 1,012. This was primarily driven by lower fuel costs and additional generation from the hydro assets despite provision for truing up impact at Barmer power project. The company stock on BSE closed at Rs 69.60 down 6.45% per cent.
Fuel cost was down 11 per cent to Rs 1,100 crore due to decline in the international prices of coal, partly offset by depreciation of the rupee versus the dollar.
Company's consolidated net worth was reported at Rs 8,615 crore and net debt at Rs 15,506 crore resulting in a net debt to equity ratio of 1.8 times.
The company's joint managing director, Sanjay Sagar, said net generation rose to 6,052 million units from 5,366 million units. The thermal power plants have achieved an average deemed plant load factor of 90 per cent against 87 per cent. In the case of hydro power plants, 24 per cent PLF was achieved given the impact of seasonability and availability of water.
According to Sagar, the company is still in the midst of carrying out due diligence for the possible acquisition of a majority stake in the Monnet Power Company Ltd which is setting up a 1,050 Mw (2x525 Mw) coal-fired thermal power plant located at Malibrahmani, Angul, Odisha. "We will be able to inform you about some development in this regard next month," he said.
As far as 240 Mw Kutehr hydro project in Himachal Pradesh is concerned, the company's director (finance), Pramod Menon, said the company has commenced enabling works and awarded a letter of intent to the EPC contractor. The financial closure is expected by the end of the current fiscal. The project cost is estimated at Rs 2,900 crore and the cost incurred up to December 31, 2015 was Rs 254 crore.
Sagar added that the company will continue to explore opportunities for the acquisition of stressed assets from hydro and thermal sector. "The project availability will be the deciding factor," he said. He added that the company will also look into setting up solar power project considering the recent lower bids. However, he declined to give any timeline for the same.
Menon said that as on date the company has tied up 60 per cent of its operational capacity of 4,531 Mw under the long-term power purchase agreements (PPAs) while 35 per cent was under short-term arrangement. However, he said that the company aims to tie up 90 per cent of its operational capacity for the long term and 10 per cent for merchant sale in due course of time.