JSW Energy today reported a 38.31 per cent increase in the net profit for the quarter ended September 30 at Rs 297.23 crore on the back of better merchant realisations, increase in other income and lower finance cost.
The company had reported a net profit of Rs 214.9 crore in the corresponding quarter last fiscal.
Its total income for the July-September quarter increased to Rs 2,219.58 crore from Rs 2,098.64 crore a year-ago.
"The total income for the quarter has increased by six per cent largely due to better merchant realisations and increase in other income," JSW Energy Joint Managing Director Prashant Jain told reporters here.
The fuel cost for the quarter increased by eight per cent to Rs 936 crore, primarily due to increase in international prices of coal.
"However, we have managed to bring down our finance costs, which has declined to Rs 391 crore from Rs 436 crore in Q2 FY2017 primarily due to interest rate reductions achieved through refinancing arrangements as well as repayment and repayment of borrowings," he said.
Jain further said the company plans to reduce its dependence on imported coal and shift to domestic. Nearly 2,000 MW of capacity requires imported coal.
The merchant sales during the quarter were 1,182 million units.
So far this year, the company has refinanced around Rs 6,000 crore worth of debt and plans to reduce interest burden further, Jain added.
During the quarter, the company signed an MoU with the Gujarat government for setting up facilities for manufacturing of electric car and storage battery.
"We are in the process of developing its product and technology strategies, business partnerships for technology and engineering as well as building the organisational set-up and core capabilities. A suitable SPV for the project is also being planned," Jain said.
He further said the company's Board has approved a capex budget for setting up new thermal generation capacity of 36MW for JSW Cement under long term PPA.
"We are working towards developing capability in the renewable energy space and plans to set up 7 MW solar power units consisting of 6 MW capacity for JSW Cement under long term PPA and 1 MW capacity for our captive consumption," Jain said.
The company is also pleased to announce securing a Rs 600 crore line of credit at attractive interest rate from SBI in partnership with World Bank for funding rooftop solar power projects, he said.
During the quarter, the consolidated deemed PLF was 72 per cent as against 77 per cent in the corresponding quarter of the previous year.
"With the capacity growth reversing its trajectory, supply side pressures abated to some extent for the sector. Merchant volumes and tariff showed healthy upward movement. In the longer term, due to the various initiatives taken by the government, power demand is expected to grow steadily," Jain said.
He further added that with capacity addition head-winds receding, a better demand-supply scenario is expected in the medium term for the power sector.
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