JSW Energy Cracks After Second Quarter Profit Falls 59%
Lower realisations led to a weak Q2 for JSW Energy
JSW Energy Ltd.’s second quarter net profit fell 59 percent in the July to September quarter to Rs 217 crore from Rs 534 crore in the same quarter last year.
The total income was lower by 18 percent at Rs 2,047.02 crore compared to 2,499.66 crore in the previous year, the company said in a stock exchange filing.
Lower generation, lower realisation, coupled with higher fuel costs dragged earnings before interest, tax, depreciation and amortisation lower by 2.5 percent compared to the previous quarter. EBITDA came in at Rs 962.71 crore as against Rs 987.87 crore year-on-year.
The consolidated debt as of September 30, 2016 stood at Rs 13,378 crore, the company said in the filing, and expressed optimism on the demand outlook going ahead.
Government focus on reforms, infrastructure push and enhanced speed in development projects, should provide a boost to the investment cycle and energy demand.JSW Energy Statement
Weak generation across major plants, except the recently acquired hydro power plant led to the bottomline weakness, analysts said.
The consolidated topline de-grew 18 percent year-on-year to Rs 2,047 crore during the quarter on the back of weak generation across major plants (except recently acquired hydro power plant). EBITDA margins for consolidated business improved as fuel costs declined aided by lower thermal power generation. The company has delivered weak numbers and it expects generation to remain weak in the near term on the back of delays in power take off bids.Alok Deora, Associate Vice President – Research, IIFL Private Wealth
Shares of JSW Energy Ltd., fell as much as 4.95 percent in trade to Rs 66.55 per share.