JSW Energy's Q1 net zooms multi-fold on lower fuel cost

Moneycontrol Bureau

JSW Energy has reported multi-fold jump in June quarter profit which came in at Rs 214. The firm said its profit rose from Rs 3 crore year-on-year due to higher power generation and lower fuel cost which dcelined arond 8 percent to Rs 1062 crore. This partly negated forex loss of Rs 187 crore, which the firm incurred due to a weak rupee.

The company said going forward, it plans to hedge import bill exposure as it imports a significant amount of coal for its plants.

Sales rose around 9 percent Y-o-Y to Rs 2431 crore on improved demand. EBITDA also rose around 47 percent to Rs 968 crore. Its net generation was also up 7.75 percent to 5097 million units Y-o-Y.

On company and sector outloo, JSW said:

With inflation tapering down and policy measures adopted by the government to contain rupee volatility, attract FDI and address twin deficits, we believe India is poised for a recovery in the near term.

The government has come out with policy measures for the financial restructuring package for DISCOMS – which quite a few large states have already implemented – however, policy clarity related to certain other key issues related to standard bidding guidelines, fuel availability and long term power procurements are yet to be addressed.

Shares of the company declined around a percent to Rs 44 post earnings announcement.

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