Sajjan Jindal promoted JSW Energy Ltd reported a 59% decline in its net profit for the July-September 2016 period due to lower generation and realisations at some of its thermal power plants.
The company reported a net profit of Rs 217.39 crore for the September 2016 ended quarter, 59% lower from the Rs 533.77 crore reported in the same period a year back. Net sales of the power producer also fell 18% to Rs 2,008.24 crore in this quarter against Rs 2,463.12 crore reported a year back.
In a Bloomberg poll, 12 analysts estimated a net profit of Rs 311.5 crore and 14 analysts estimated revenue of Rs.2369 crore for the September quarter. The company did not meet both the profit and revenue estimates.
In its statement to BSE, JSW Energy said, the decrease in turnover is primarily on account of lower generation and realisation at Vijaynagar and Ratnagiri. This was partly offset by increased generation at its recently acquired hydro power plants in Himachal Pradesh.
Plant load factor (PLF) for the Vijaynagar plant fell to 31% from 81% a year back. PLF for the Ratnagiri plant fell to 82% from 86% compared to the corresponding quarter last year. PLF is an indicator of the utilisation of the available power generating capacity.
JSW Energy has acquired two hydro assets from Jaiprakash Power Ventures in September 2015, plant load factor for both these assets increased to 94% in the September 2016 quarter from 72% reported a year back.
For the September quarter, Earnings before interest, depreciation, tax and amortisation (Ebitda) was lower at Rs 1,014 crore against Rs 1,239 crore reported in the same period a year back. Ebitda was lower due to lower generation and realisation coupled with higher fuel costs.
"JSW Energy's net profit was impacted by lower realisation, higher interest & depreciation costs despite higher generation which down by 26.5% in line with our expectations," according to a Reliance Securities report.
The consolidated net debt as on September 2016 was at Rs 13,738 crore and a net debt to equity ratio of 1.34 times.
Net power generation for the company was higher at 6,276 million units against 5,637 million units generated a year back.
"Electricity demand grew at tepid rate in the last quarter, largely due to seasonal factors. Increase in power supply has outpaced the growth in demand and has resulted in reducing demand-supply gap across the country," the company said in its statement.