Companies

JSW Energy net down 25 pc on higher coal prices

Our Bureau Mumbai | Updated on January 26, 2011 Published on January 24, 2011

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JSW Energy has posted a 25 per cent drop in net profit at Rs 153 crore for the quarter ended December 31, 2010, as against Rs 205 crore logged in the same period last year, primarily on account of higher coal prices and interest cost. This is despite a 53 per cent jump in the total income at Rs 1,077 crore.

Mr Pramod Menon, CFO, said spot coal prices had gone up by about 50 per cent to $90 a tonne during the quarter. Interest cost for the quarter went up 61 per cent to Rs 142 crore (Rs 88 crore). The total debt stood at Rs 9,438 crore. During the quarter, Rs 1,769 crore had been refinanced, resulting in savings of 1.59 per cent per annum.

This apart, the State power utilities were not buying electricity though it was available and the way forward was for more private sector participation in distribution, said Mr Nirmal Jain, Vice-Chairman, JSW Energy.

During the quarter, the installed capacity rose to 1,730 MW as a second unit of 135 MW became operational at Barmer and a 300-MW facility came on stream at Ratnagiri. The total generation was up at 2,396 million units.

Looking forward, Mr Jain said while the overall optimism of consumption-led growth continued, a spurt in inflation besides a rise in fuel prices had subdued the growth momentum as monetary tightening was anticipated. Though the short-term prices of power remain under pressure, due primarily to fiscal related issues, prices were expected to move up. With an improvement in the weather in Australia, coal prices were expected to correct.

On Thursday, the JSW Energy scrip closed marginally up on the BSE at Rs 88.25.

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Published on January 24, 2011
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