 "JSW Energy Q4 net drops 6% to Rs 305 cr")
JSW Energy’s net for the March quarter dipped six per cent to Rs 305 crore against Rs 325 crore during the corresponding quarter of the previous year due to higher interest and depreciation after the acquisition of hydro assets in Himachal Pradesh. Bloomberg had estimated the company’s fourth quarter net at Rs 308 crore.
The total income from operations rose by 22 per cent to Rs 2,681 crore, against Rs 2,190 crore, driven largely by increased generation from the thermal plants and supplemented by additional generation from the hydro plants. The company last year had acquired the 300-Mw Baspa-II and 1,091-Mw Karcham Wangtoo from the debt-ridden Jaiprakash Power Ventures Ltd in Himachal Pradesh, for Rs 9,700 crore. The company has an operational capacity of 4,531 Mw.
The net generation increased to 5,894 mn units against 4,698 mn units. The thermal plants have achieved an average deemed plant load factor (PLF) of 92 per cent against 84 per cent. However, the hydro power plants have achieved an average 14-per cent PLF, given the impact of seasonality of availability of water.
JSW stock on the BSE closed at Rs 67.90, down 0.44 per cent.
Earnings before interest, taxes, depreciation and amortisation (Ebidta) surged 26 per cent to Rs 1,162 crore, against Rs 921 crore due to increase in generation and lower fuel prices, partially offset by the truing up provisions for the Barmer plant.
The fuel cost increased to Rs 1,185 crore against Rs 1,046.69 crore, a 13 per cent rise due to higher generation, increase in lignite cost as the rates order delivered by the Rajasthan Electricity Regulatory Commission and the currency depreciation despite decline in the international coal prices.
The consolidated net worth was reported at Rs 8,536 crore and consolidated debt at Rs 15,098 crore as on March 31, 2016 resulting in a net debt to equity ratio of 1.77 times.
The board of directors at its meeting held today has recommended dividend payout of Rs 2 per share for FY2016 out of distributable profits. It has considered providing dividend higher than the threshold of 20 per cent of the distributed profits in the current year.
The company has commenced enabling works on the 240 MW Kutehr project in Himachal Pradesh and awarded letter of intent to the EPC contractor. The financial closure is expected during the next fiscal and the award of EPC contract will happen only after the financial closure. The project cost is estimated at Rs 2,900 crore and cost incurred on the project up to March 31 was Rs 262 crore.
In its outlook, the company said domestic coal availability has been improving and international coal prices have been range bound. However, lack of demand for long term power procurement, lack of clarity around auction of coal blocks, power network congestion and high transmission and distribution losses continue to persist. While the capacity addition has been robust through the conventional sources and policy thrust on renewables have led to encouraging capacity additions, the overall PLF has dropped. This has put pressure on margins and increase the stress on fiscal health of the generating companies.
According to the company, these factors provide a challenging environment for power generating companies and the margins and profitability of the sector are likely to remain under pressure till the industrial and economic growth show sustained and marked improvements.
