JSW Energy Q3 net down 93% to Rs 21 crore

 It posted a net profit after taxes, minority interest and share of profit of associates of Rs 21.39 crore for the quarter ended December 31, 2016, as against Rs 309.25 crore a year ago, the company said in a BSE filing. | JSW Energy Q3 net down 93% to Rs 21 crore JSW Energy today reported a 93 percent fall in its consolidated net profit at Rs 21.39 crore for the third quarter of this fiscal due to lower power generation. It posted a net profit after taxes, minority interest and share of profit of associates of Rs 21.39 crore for the quarter ended December 31, 2016, as against Rs 309.25 crore a year ago, the company said in a BSE filing. Total income was Rs 1,954.83 crore, down from Rs 2,627.04 crore in the same period a year ago due to the decrease in turnover, primarily on account of lower generation coupled with lower tariff.

 It said during the quarter, net (power) generation was down by 23 per cent compared to the corresponding quarter of the previous year primarily on account of poor power demand across all thermal plants, besides shutdown of one unit of 300 MW at Ratnagiri due to turbine vibrations. Its net power generation was 4,644 million units in the third quarter as against 6,052 million units in same quarter of the previous year. The merchant sales during the quarter were 699 million units (15 per cent of volume), while the sales under long term power purchase agreements were 3,863 million units (85 per cent of volume). Consolidated net worth and consolidated net debt as of December 31, 2016 were Rs 10,205 crore and Rs 14,134 crore respectively, resulting in a net debt to equity ratio of 1.38 times. On the outlook for the industry, the company said that the gauge of industrial activities is appearing to show an uptick, although the consistency of growth is critical in the backdrop of demonetisation and weak PMI. Continued low inflation and softening interest rates are expected to provide necessary impetus to economic activities in the coming quarters.

 Focus on strong public spending on infrastructure and development projects in the forthcoming budget should boost the investment cycle and consequently, the energy demand, it said. In a separate filing, the company told the BSE that its board has decided raise Rs 1,000 crore through issuance of redeemable non-convertible debentures on private placement. The company also said that its Director-Finance and Chief Financial Officer Pramod Menon has put in his papers and will relinquish office on January 31, 2017. It said that the board in its meeting today appointed Jyoti Kumar Aggarwal as Chief Financial Officer from February 1, 2017. The company has also said that Karcham Wangtoo Hydro project of Himachal Baspa Power Company Ltd, a wholly owned subsidiary, has filed petition for determination of final tariff with Central Electricity Regulatory Commission (CERC) and pending the receipt of final tariff order, the revenue from sale of power under long term power purchase agreements are being recognised in terms of expected tariff as per the available guideline in this regard. The hydro projects were acquired during September 2015. Hence, figures for the corresponding nine months ended of the previous year are not comparable, it added.

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