JSW Energy Q1 net dips to Rs 3.41 cr on forex loss

JSW Energy posted a sharp decline in its June quarter profits to Rs 3.41 crore as against Rs 225.32 crore, year-on-year.as it incurred a forex loss of Rs 232 crore. However, the company’s sales grew 76% to Rs 2155.6 crore on the back of highest quarterly net generation of 4,731 million units, growth of 95%, YoY. The company said it stabilized operations at its Vijayanagar, Ratnagiri and Barmer plants with a 101%, 92% and 75% plant load factors.

While explaining why the company could not reap benefits of lower coal prices, it stated, "Imported thermal coal prices corrected sharply during the course of the quarter due to weak global economy and spurt in thermal coal exports from US.  However, the reductions in the imported thermal coal prices have largely been off-set due to steep depreciation in the Indian Rupee against US Dollar during the quarter." It further said that the benefits of the reduction in coal prices have only marginally been realised, as inventory at the beginning of the quarter have been fully consumed during the quarter, said the company in a statement.