JSW Energy reported a 13% year-on-year drop in its revenues at Rs 2,231.85 crore for the September quarter on lower industrial demand. The plant load factor (PLF) at two major plants in Vijaynagar and Barmer fell due to lower industrial demand. Revenues were also impacted by lower fuel cost during the quarter, which includes the variable cost of the two-part tariffs. Its net profit for the quarter, however, rose 15.79% year-on-year to Rs 353 crore due to lower expenses.
During the September quarter, PLF at Vijaynagar dropped to 40.1% against 51.8% in same quarter last year due to lower long term power sales, while at Barmer in Rajasthan, the average PLF dropped to 60% as against 71.5% due to back-down by discoms. The operating profit (Ebitda) for the company rose 8.5% year on year to `934 crore, as the fuel cost for the quarter dropped 26% year on year to `983 crore. The drop in fuel cost was primarily driven by moderation in the imported coal prices.
JSW Energy’s operating margins for the September quarter was higher by 372 basis points at 44.12% as lower sales realisations were mitigated by drop in fuel costs. The finance costs declined to Rs 272 crore from Rs308 crore in the corresponding quarter of last year due to proactive debt repayment and prepayment by the company.
The company, which has set a target of 10 GW of capacity addition in the next 3-5 years, said that the committee of creditors of Ind-Barath (Utkal) has approved the company’s resolution plan under the corporate insolvency resolution process for a 700-MW under-construction thermal power plant in Odisha. The closure of the transaction shall be subject to approval from NCLT. As a part of this, JSW will pay upfront Rs1,000 crore to lenders. The project construction has started and it will be finished in the next 12-24 months, as it is not an operating plant and requires clearances for part rail connectivity to source coal.
Australian asset manager Macquarie had moved the National Company Law Tribunal (NCLT) to start insolvency proceedings against Ind-Barath Energy (Utkal).
Source: Financial Express, November 2, 2019