JSW Energy Q1 net profit up 5.7% at Rs 229.5cr on better sales

Sajjan Jindal-led JSW Energy today reported a 5.7 per cent increase in consolidated net profit for the quarter ended June 30 Rs 229.5 crore mainly due of improvement in sales.

The company had clocked a net profit of Rs 217 crore in the corresponding quarter last fiscal.

Its consolidated income during April-June increased to Rs 2,427.8 crore over Rs 2,334 crore in Q1 of 2017-18.

"There has been an improvement in merchant tariffs and thus the improvement in realisations. However, its impact has been offset because of the increase in coal prices in the international market. Domestic coal prices have also increased by 17-18 per cent as compared to last year," company's executive vice-president Sharad Mahendra told reporters here.

The fuel cost for the quarter increased by 24 per cent to Rs 1,389 crore as compared to last fiscal, primarily due to increase in international prices of coal, further exacerbated by weakening of rupee.

"The merchant power markets continue to be robust. The average monthly merchant prices at the exchange peaked in May, 2018 at Rs 4.67 per unit and averaged at Rs 4.13 for the quarter," he said.

During the quarter the company's short term sales were 1,147 million units as compared to 1,834 million units in Q1 FY18, a decline of 37 per cent on account of increase in long term PPA proportion to 100 per cent at Karcham Wangtoo plant, and lower contracted power with Karnataka discoms at Vijayanagar plant.

The company's consolidated deemed plant load factor was 69.8 per cent as against 76.3 per cent in the corresponding quarter of the previous year.

Speaking about the company's solar power initiatives, Mahendra said, "the prices at which the tenders are being bid, we have a doubt whether those prices are sustainable. So we are waiting for the right time to enter into the sector in a big way though we have made a small beginning by commissioning 12.1 MW rooftop and ground mounter solar capacity within the JSW Group."