Weak rupee pulls JSW Energy's net loss to Rs 109cr in Q2

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Weak rupee pulls JSW Energy's net loss to Rs 109cr in Q2

JSW Energy has reported a net loss of Rs 109 crore for the July-September quarter versus Rs 185 crore net profit posted in the same quarter last financial year.

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Moneycontrol Team

JSW Energy has reported a net loss of Rs 109 crore for the July-September quarter versus Rs 185 crore net profit posted in the same quarter last financial year.

The company attributed the poor financial performance to Forex losses and high interest and depreciation charges. However, the company's total income grew 18% at Rs 996 crore.

Commenting on the result, LK Gupta, joint managing director and CEO of the company said, "During the quarter under preview, there was prolonged monsoon, which resulted in deferment of power procurement by the distribution company. Also, the rupee depreciated over 10%, due to which there was a Forex loss of Rs 76 crore."

He further said, during the quarter the prices of imported coal remained firm while other commodities have witnessed significant downward correction. Also, fuel costs rose 65% to Rs 762 crore, on a year on year basis (YoY). Going forward, there factors are likely to add pressure on the margins of the present fiscal.

However, providing an update on the existing plants, Gupta said, the Ratnagiri plant operated at 74% plant load factor (PLF) as against to 62% YoY. The operations were affected due to heavy monsoon, resulting to lower efficiency.

The company's Vijaynagar plant also saw their PLF decline to 72%, compared to 91% in the same quarter last year. This was primarily due to restrictions imposed on scheduling of deferment of power procurement by the distribution company and unscheduled plant maintenance.

The company's Barmer plant continued to remain shut during the quarter due to the pending tariff approval by Rajasthan Electricity Regulatory Commission.

Shaheen Mansuri

Shaheen.Mansuri@network18online.com