 "JSW Energy net up 49%")
Total income went up by 10.6 per cent to Rs 2,301 crore, as compared to Rs 2,365 crore in the corresponding quarter last year. Operational capacity increased to 3,140 Mw during the quarter as four units of its lignite-based power plants in Barmer in Rajasthan, came on stream.
The company's capacity utilisation or plant load factors (PLFs) were at an average of 85.4 per cent for the quarter.
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The company said that the board has recommended a dividend of Rs 2 per share. “We have been showing good performance for the last three quarters, but the results are not visible on the stock exchanges,” lamented N K Jain, vice-chariman of JSW Energy. This, he attributed to the difficult times that the sector is passing through like availability of coal and prices of fuel.
“JSW Energy has stood out as one of the power companies which made a reasonable profit,” said Sanjay Sagar, the chief executive officer of the company. He also said that they would able to sustain their current financial performance if the fuel prices remain at the current level, and if Rupee remains range-bound. The fuel cost during the quarter came down by 11% to Rs 994 crore, as compared to the last year.
Merchant power prices, however, are not expected to move ahead much even as an election year is ahead. “They will remain under pressure in the current financial year,” said Pramod Menon, director finance of the company. Around 53% of JSW Energy's sales are based on a merchant basis. The company believes that there is a slowdown in industrial productivity which is impacting merchant power sales.
JSW believes that merchant rates might sustain in the Southern parts of the country, though in Western region it might be a challenge for them to sustain. “This is due to addition of new generation capacity,” said Sagar. The company hopes falling fuel prices might provide a cushion.
The company said that it would remain cautious in taking up more new projects fired by coal, due to 'severe policy drought'. JSW Energy is however working on its 240 megawatt hydro power project in Kutehr, Himachal Pradesh.
Jain also hopes that clarity could come into the sector after the government finishes work on standard bid document. Many state governments, he says, are not signing long-term power purchase agreements, as they are awaiting clarity on bid documents. “Fuel prices should be passed on and fixed cost is what a power generator should take a call on. Generators can take the risk of project cost and how fast can it be constructed, but not fuel risk,” suggested Jain.