JSW Energy Q2 profit rises 37% to Rs297 crore
Mumbai: JSW Energy Ltd Monday said consolidated net profit rose 37% to Rs297 crore in the September quarter from Rs217 crore a year ago.
Total income from operations rose 6% to Rs2,220 crore against Rs2,099 crore in the corresponding quarter of the previous year, largely on account of better merchant realisations, higher other income and savings in operation and maintenance costs, the company said in a press statement.
Earnings before interest, tax, depreciation and amortisation (Ebitda) was up 4% at Rs1,053 crore against Rs1,014 crore a year ago. However, fuel cost for the quarter increased by 8% on year to Rs936 crore, primarily due to increase in international prices of coal.
“Overcapacity concerns in thermal power plants are receding and we are seeing a strong latent power demand. Also, we are working to switch to domestic coal in coming quarters. The company will also secure domestic coal mines in upcoming coal block options,” Prashant Jain, joint managing director and chief executive officer (CEO) said at a press briefing.
The board of JSW Energy also approved a capital expenditure for setting up new thermal generation capacity of 36 megawatt (MW) for JSW Cement, part of the JSW group, under a long-term power purchase agreement.
The company has also secured a Rs600 crore line of credit from State Bank of India (SBI) in partnership with World Bank for funding rooftop solar power projects.
“The company is working towards developing capability in the renewable energy space and plans to set up 7MW solar power units consisting of 6MW capacity for JSW Cement under long term power purchase agreement and 1MW capacity for JSW Energy’s captive consumption,” JSWEL said.
Finance costs declined to Rs391 crore from Rs436 crore a year ago due to lower interest rates achieved through refinancing arrangements as well as prepayment/repayment of borrowings.
Consolidated net worth and consolidated net debt as on 30 September stood at Rs11,259 crore and Rs12,679 crore respectively, resulting in a low net debt to equity ratio of 1.13 times, said Jyoti Kumar Agarwal, director finance, JSW Energy.
During the quarter, the company signed a memorandum of understanding with the Gujarat government for setting up facilities for manufacturing electric cars and storage batteries.
The company is in the process of developing its product and technology strategies, business partnerships for technology and engineering as well as building organisational set-up and core capabilities.
A suitable special purpose vehicle for the project is also being planned, the company added.
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