JSW Energy Q2 net profit up 6.3% to Rs 316 crore
JSW Energy on Friday posted a 6.3 per cent increase in consolidated net profit to about Rs 316 crore in the quarter ended September 30, 2018.
The company had posted a profit of Rs 297 crore in the same period a year ago.
JSW Energy said that the average price of Indian basket of crude has surged from USD 68 per barrel since April 2018 to USD 78 per barrel in September 2018 which resulted in firming up of input cost pressures for the manufacturing firms, thereby denting their profit margins.
"The fuel cost for the quarter increased by 42 per cent YoY to Rs 1,329 crore, primarily due to an increase in international prices of coal further exacerbated by the weakening of rupee," the company said.
The consolidated revenue from operations of JSW Energy increased 18.6 per cent to Rs 2,430.76 crore during the reported quarter from Rs 2049.04 crore in the same period of 2017-18.
JSW said that long-term power purchase agreement (PPA) proportion improved to 80.4 per from 75 per cent on quarter-on-quarter basis after securing additional 230 megawatts (MW) and 6.5 MW PPAs within the JSW Group at Vijayanagar and Ratnagiri plants respectively "The Company achieved higher plant load factor (PLF) in the second quarter of the financial year 2019 across all locations on a year-on-year basis, accompanied by better merchant realisations," the statement said.
JSW Energy's reported decline in net debt to equity to 0.9 times with reduction of net debt by Rs 400 crore, through prepayment and scheduled repayments.
Talking about the business environment, JSW Energy said that the sector is also likely to see increased consolidation which will further aid the demand-supply balancing.
"However, higher imported coal prices and low domestic coal availability especially for private sector power plants, continue to remain key concerns for the sector," the statement said.
It added that the power sector outlook over next 3 to 5 years has improved as power demand grows steadily considering the various measures undertaken by the government such as UDAY Scheme, Power for All by 2019 initiative, SHAKTI scheme etc.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
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