JSW Energy net nearly halves to Rs 174.62 cr on higher interest cost

May 01 2014, 22:21 IST
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SummaryDepreciation on capitalisation of units also ate into bottomline

The Sajjan Jindal-led JSW Energy’s fourth-quarter sales missed analyst estimates on lower generation of electricity. The company achieved a deemed plant load factor (PLF) of 62% in the quarter mainly due to shutdown of its Barmer plant for part of the period due to non-availability of lignite and schedule for certain units.

The company reported Q4FY14 net sales of R2,018.49 crore, below R2,073.6 crore according to Bloomberg estimates. Sales fell about 11% year-on-year (y-o-y). Net profit for the quarter ended December was R174.62 crore, a fall of 48% y-o-y. The company said a higher charge of interest and depreciation on capitalisation of units ate into its bottomline.

“The recent decisions of the regulatory bodies indicate a trend for grant of compensatory tariffs of projects rendered unviable. However, the sector continues to reel under the low off-take, falling tariff and fuel uncertainty. Accordingly, the merchant prices are expected to be under pressure primarily due to low demand and no signs of a pick-up in the economic growth outlook in near term,” a company statement said.

JSW Energy’s debt equity ratio as on December 31 stands at 1.54 times.

In terms of generation, the company’s Vijaynagar unit had a PLF of 101% while the Ratnagiri project had an average PLF of 60% and Barmer had a deemed PLF of 34%.

The fuel cost for the quarter was R979 crore, down 2% y-o-y and 8.2% quarter-on-quarter. “The fuel costs were impacted by a correction in the international coal prices but were adversely impacted due to the steep depreciation of the currency,” JSW Energy said.

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