JSW Group company JSW Energy is expected to report weak set of earnings on lower sales volume. Profit is seen falling 70 percent year-on-year to Rs 97 crore and revenue may fall 24 percent to Rs 2,009 crore.
Analysts say low demand and subdued pricing for merchant power, a high cost of imported coal and continued delay in the Karnataka power purchase agreement (PPA) may hurt earnings.
According to average of estimates of analysts polled by CNBC-TV18, operating profit during the quarter may fall 35 percent to Rs 768 crore and margin may shrink 580 basis points to 38.2 percent compared with year-ago period.
Sales volume is likely to decline 22 percent YoY to 4,747 MUs, driven largely by the Vijaynagar plant that may fall 45 percent to 932 MUs.
Sales volume at Ratnagiri is also expected to decline 27 percent YoY to 1,428 MUs while Barmer and hydro assets may remain flat YoY.
Fuel cost is expected to increase to Rs 2.75 per unit in Q3FY17 against Rs 2.31 in Q3FY16 as both South African and Indonesian coal prices have remained at an elevated level.
Total plant load factor is expected to be at 53 percent against 67 percent but ex-hydro plant load factor may be little better total plant load factor, at 64 percent against 86 percent.
Seasonally low hydro generation in December quarter may be depressing merchant unit sales from Karcham-Wangtoo project.
Factors to watch out for would be performance at Vijaynagar plant, update on Tamnar and Bina acquisition, realisation rate and comment on any PLFs and merchant rates.
