JSW Energy Q3 profit may decline to Rs 353 cr on finance cost

JSW Energy's third quarter consolidated profit is seen falling to Rs 353 crore from Rs 380 crore in a year-ago period, according to analysts polled by CNBC-TV18. It is likely to be impacted by higher interest and depreciation cost. Earnings will be announced on December 20.

Revenue may increase 9.3 percent to Rs 2,601 crore in quarter ended December 2015 compared to Rs 2,381 crore in same quarter last fiscal.

Analysts say earnings could be negatively impacted by softness in merchant power demand (40-45 percent of company's offtake is merchant power). Merchant rates were low in December quarter due to low demand and hence, realisations can drop 5 percent Y-o-Y.

They say they expect incremental revenue from hydro assets (as it is the first quarter of full operations) but generation from Hydo assets is seasonally lower in Q3FY16.

Operating profit (earnings before interest, tax, depreciation and amortisation) is likely to increase 8.8 percent year-on-year to Rs 1,060 crore but margin may contract 20 basis points to 40.7 percent in quarter gone by.

Margin on sequential basis is likely to expand marginally given the fall seen in imported coal prices.

Analysts expect generation of around 6.4 billion units in Q3FY16 against 5.6 billion units in Q2 and 5.4 billion units in a year-ago period. Generation Growth may be mainly led by acquired hydro assets but coal volumes may remain flattish.

They expect low generation at Vijaynagar plant.