On the back of better price realisations from its customers,  JSW Energy has reported a good year, and is carrying the momentum to the next fiscal with plans of reviving its hydro power project in Himachal Pradesh.

JSW Energy, a part of the JSW Group, has reported net profit of ₹4 crore in the March-ended quarter, a significant turnaround from the year-ago period, when it posted losses of ₹483 crore.

Similarly, for fiscal 2019, profits were ₹684 crore, a 700 per cent increase compared with ther 2018 fiscal when it had posted profits of ₹84 crore.

Revenues for the March ended quarter came in at ₹2,018 crore (₹2,491 crore), down by almost 19 per cent. This, the management said was due to low power demand for the fourth quarter due to prolonged winter, load shedding by distribution companies, and unimpressive industrial activity. For fiscal 2019, revenues were ₹9,505 crore, a 11.6 per cent increase compared to the ₹8,513 crore it posted in the 2018 fiscal.

JSW’s optimism comes from a combination of factors. The first macro factor, according to Prashant Jain, Joint MD and CEO, JSW Energy, is that power demand in the next 3-5 years is expected to improve, backed by various government schemes.

JSW Energy has also decided to resume the construction and development of its 240 MW hydro electric power at Kutehr in Himachal Pradesh.

The company's board on Thursday recommended a dividend of ₹1 per equity share of ₹10 each for the year ended March 31, 2019.

Future plans

JSW said it has decided not to pursue the electric vehicle business because of various uncertainties associated with it. “We would rather maintain capital cushion for growth opportunities in power and other related businesses,” said Jain. The company is also pursuing a strategy of continued de-risking of its business. During the quarter, JSW Energy reduced its net debt by ₹636 crore through repayments.

The depreciating rupee resulted in a higher fuel cost for JSW during the quarter. EBITDA for the quarter was ₹570 crore (₹525 crore), a 9 per cent increase.

JSW has also commissioned two thermal capacity plants of 18MW each at Salboni and Nandyal, expected to come up in Q1 FY20 with a long-term Power Purchase Agreement (PPA) tied up. The Vijayanagar plant also secured PPA for 300 MW from the Telangana government.

The board has also approved the appointment of Sharad Mahendra as an additional, whole-time director of the company for five years.

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