JSW Energy has reported a 30 per drop in net profit at Rs 220 crore for the quarter ended March 31, 2011 as against Rs 315 crore logged in the same period a year ago.
High coal prices impacted the margins, despite a 52 per cent rise in total income, due to higher generation, at Rs 1,225 crore (Rs 802 crore).
Mr L.K. Gupta, Joint Managing Director, said the rise in imported coal increased the cost of generation.
JSW Energy, to insulate its business from the rising prices enhanced the consumption of Indonesian coal, was testing blends of varieties of coal. It was also holding negotiations for long-term coal contracts with some coal miners.
CIC Energy
Mr Gupta said the proposed acquisition of CIC Energy Corp depended on the fulfilment of several conditions. CIC had to renew a portion of the mining area covering 300 million tonnes reserve with the Botswana Government, which he said was one among other conditions stipulated. Total reserve of CIC is estimated at 2.7 billion tonnes. The deal closure date has been extended to May 31.
JSW Energy achieved its highest quarterly consolidated net generation of 3,012 million units with net sales of Rs 1,459 crore. The average price per unit realised was Rs 4.71.
Ratnagiri project
On reports of Ispat Industries picking up a 26 per cent stake in JSW Energy's Ratnagiri project, he said it would be plant specific and the requirement of Ispat was in range of 200-250 MW. Mr Gupta declined to reveal the tariff rate of power supply made to Ispat.
On Thursday, JSW Energy scrip closed 4.33 per cent lower at Rs 75.15, on the BSE.