JSW Energy Q1 net profit dives 40% to Rs217 crore
New Delhi: JSW Energy on Friday reported a 40% decline in its consolidated net profit to Rs217.18 crore in the first quarter ended 30 June, mainly on account of higher fuel costs and dip in revenues. The company also announced that its board has approved the proposal to enter into electric vehicles, energy storage systems and associated business, directly or through one or more subsidiaries.
On the investment in this segment, it said the expected capex (capital expenditure) to be incurred over the next three years will be in the range of Rs3,500 to Rs4,000 crore. The company’s consolidated net profit was Rs364.89 crore in the April-June quarter last fiscal, JSW Energy said in a BSE filing.
During the quarter, total income from operations slipped 9% to Rs2,232 crore as against Rs2,450 crore in the corresponding quarter of the previous year, due to lower generation from the coal fired plants and subdued merchant realisations, the company said.
The fuel cost for the quarter increased by 8 per cent year-on-year to Rs1,120 crore following rise in international prices of coal. It said EBIDTA (earning) for the quarter declined by 16% to Rs971 crore as against Rs1,159 crore in the corresponding quarter of the previous year, due to decline in revenues and increase in coal costs, however, it was partly offset by savings in operation and maintenance costs. The finance costs have declined to Rs396 crore from Rs429 crore as interest rate reductions achieved through refinancing arrangements as well as by prepayment of borrowings.
The consolidated net worth and consolidated net debt as on 30 June, 2017 stood at Rs10,696 crore and Rs13,686 crore, respectively, resulting in a net debt to equity ratio of 1.28 times. During the quarter consolidated deemed PLF (plant load factor or capacity utilisation) was 76% as against 78% in the corresponding quarter of the previous year.
The merchant sales during the quarter were at 1,834 million units and the sales under long term power purchase agreement were 4,301 million units. The board also approved appointment of CFO Jyoti Kumar Agarwal as an Additional and Whole-Time Director for a period of 5 years, subject to the approval of the members of the company.
About its decision to venture into new segment it said that the Indian automobile industry is at an inflection point in terms of growth in overall market size and a level playing field has been made available to new entrants due to disruption by electric vehicle technology.
JSW Energy seeks to participate in this revolutionary market opportunity and is planning to launch its own electric vehicle by 2020 with a vision of “Make in India and Make for India,” it added.
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