JSW Energy Q1 net profit falls 15% to Rs277 crore
Total sales, or income from operations, for the quarter stood at Rs2,107 crore, down 17.6% from a year earlier
Mumbai: JSW Energy Ltd on Wednesday reported about a 15% fall in fiscal first-quarter profit from a year earlier, missing analysts’ expectations, on lower demand for power.
Net profit during the first quarter ended 30 June fell to ₹ 277 crore from ₹ 325 crore a year earlier, JSW Energy said in a BSE filing. A Bloomberg poll of 17 analysts had estimated net profit of ₹ 312 crore.
Total sales, or income from operations, for the quarter stood at ₹ 2,107 crore, down 17.6% from a year earlier, against the ₹ 2157.8 crore predicted in the Bloomberg poll of 16 analysts.
“Low industrial energy demand, unseasonal rains and poor financial health of the state discoms have resulted in overall demand contraction for power in India in Q1 FY16," JSW Energy said in a statement on Wednesday.
Even as fuel costs in the quarter fell by 17% to ₹ 974 crore in the quarter, earnings before interest, taxes, depreciation, and amortization (Ebitda) fell 6.5% to ₹ 886 crore due to lower generation and decline in average realization, JSW said.
Net power generation in the quarter was at 4.48 billion units, compared with 5.01 billion units in the year ago quarter.
The company, part of the $11-billion Sajjan Jindal-led JSW Group, has been aggressively pursuing acquisitions to strengthen its power business.
This month, JSW Energy signed an early agreement to acquire a majority stake in Monnet Power Co. Ltd, a subsidiary of Monnet Ispat and Energy Ltd. In November, JSW agreed to buy two hydro power projects from Jaiprakash Associates Ltd for about ₹ 9,700 crore.
In March, JSW Energy’s shareholders approved a proposal for the company to raise funds of up to ₹ 5,000 crore through sale of equity or debentures. Shareholders also gave the board consent to exercise its powers to invest in or acquire corporate securities up to an amount of ₹ 7,500 crore, the company had said in March.
Shares of JSW Energy rose 1.80% to ₹ 98.90 on BSE, while the benchmark Sensex gained 1.15% to 28,504.93 points.
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