JSW Energy is looking to increase its stake in South African Coal Mining Holding (SACMH) to 75 per cent. Currently, it indirectly holds 59.4 per cent stake in the mining company, after it bought into Royal Bafokeng Capital, last year.
"We can further enhance our stake by the way of open offer and we are trying to do that," said Pramod Menon, chief financial officer. This quarter, the company commenced production and mined 140,069 tonnes of raw coal from the existing coal block of SACMH. It has also commenced work on opening up the second block.
JSW Energy on Thursday also said it plans to sell 26 per cent stake in its 300 Mw unit of its Ratnagiri power plant, to Ispat Industries. This deal will be done as a part of the power off take agreement between both the companies. Ispat, in which JSW Steel acquired 49 per cent stake, plans to buy as much as 200-250 Mw for its steel plant in Dolvi, Maharashtra.
"There have been several rounds of discussions on giving power to Ispat. It is profitable for us too as we need long-term power buyers as well. Once the formalities are done, we will decide on the price," said L K Gupta, chief executive officer.
JSW Energy on Thursday reported a 25 per cent drop in net profit to Rs 205.7 crore in the fourth quarter, as compared to same quarter last year. This is in spite of a 73 per cent increase in revenues to Rs 1,459 crore from the corresponding quarter. Increase in spot coal prices have contracted the company's profit margins. The company's stock went down by 4.3 per cent in on Thursday's trade, to close at Rs 75 per share.
