WebSify
Follow us on
Mail
Print

JSW Energy swings to profits

Source : BUSINESS_STANDARD
Last Updated: Wed, Jan 23, 2013 20:10 hrs

Improved rates, lower fuel costs and increased power generation helped JSW Energy move to profits in the third quarter. It posted a consolidated net profit of Rs 311 crore for the quarter compared with a net loss of Rs 83 crore in the corresponding quarter last year. Total income from operations also went up 34 per cent to Rs 2,365 crore, from Rs 1,771 crore in the corresponding quarter last year.

“The increase in profitability is primarily due to increase in generation, improved tariff (rate) and relatively lower fuel cost,” the company said in a press release.

The company claims that its operational performance saw an improvement in the quarter, on the back of improved operations of its Barmer unit, while the Vijayanagar and Ratnagiri plants continued to maintain high availability. The company has a total operating capacity of 2,600 megawatts.

The company had an average plant load factor or PLF of 91.3 per cent for the quarter. “The company achieved the highest quarterly net generation of 4770 million units,” JSW Energy said. The net generation for the quarter grew by 20 per cent as compared to the corresponding quarter, last year.

Increased fuel costs have been eating away the company’s profits, as it was exposed to international coal prices from imports, in the last few quarter. The fuel costs reduced by a marginal two per cent on an annual comparison.

“Imported thermal coal prices remained range bound during the quarter. However, the Rupee continued to remain under pressure against the Dollar, containing the gains due to fall in international coal prices,” JSW Energy said. The company said it is going to continue its efforts to optimise the blending mix of different categories of coal, and identify new sources of coal aimed at reducing the fuel costs.

JSW Energy’s South African Coal Mining Holding (SAMCH) has completed complete coal extraction in its existing mining lease and is awaiting licences in new mining area. “Accordingly, SACMH has suspended its operations and retrenched most of its staff at the present moment for containing its costs. SACMH is now exploring various alternative business options to effectively utilise the assets and concessions,” the company said.

JSW Energy’s stock went up by around three per cent in on Wednesday’s trade to close at Rs 73.5 per share, as per data available on the Bombay Stock Exchange.



blog comments powered by Disqus
most popular on facebook
talking point on sify finance