Sajjan Jindal-backed JSW Energy is planning to add 5.5 GW in renewable energy in the next 3-5 years and said it continues to be interested in acquiring Ind Barath, which is still undergoing corporate insolvency resolution process. The company on Tuesday said its net profit remained flat in the September quarter.
Talking to BusinessLine , Prashant Jain, Joint MD and CEO, JSW Energy, said the company is looking to up its renewable energy (RE) play going forward. “Currently, of our total 4.6 GW capacity, 70 per cent is thermal and the remaining is a mix of RE and hydro electric. In the next 3-5 years, we have a target of achieving 10 GW capacity and would like to reverse that mix.”
In effect, this would mean that RE will contribute 6-7 GW in the medium term. In the second quarter, JSW Solar, a subsidiary of JSW Energy, received Letter of Awards for setting up a total blended wind capacity of 810 MW from the Solar Energy Corporation of India (SECI).
JSW Energy also said it continues to be interested in acquiring Ind Barath, which is still awaiting final NCLT approval. Earlier, JSW Energy had estimated that the acquisition will close by June-end but the case is still ongoing at the National Company Law Tribunal. “Lenders are still sorting out issues and it is very hard to put a precise timeline on it, considering the pandemic, too,” Jain said.
Q2 results
JSW Energy also announced its September quarter results. Its consolidated net profit remained flat at ₹352.12 crore compared with ₹352.98 crore in the same period last year. On a sequential basis, profit grew 65 per cent, compared with ₹213 crore posted in the June-ended quarter.
However, total revenues went down by 10 per cent to ₹2,000 crore in Q2 compared with the year-ago period when revenues were ₹2,232 crore. This was primarily to lower short-term sales and the reduction attributable to the impact of work at a standalone entity. Also, the fuel cost for the quarter decreased by 14 per cent on a yearly basis to ₹844 crore, primarily attributable to lower generation, Jain said. Revenues on a sequential basis went up 10.35 per cent.
Power demand declined in July and August to 4.2 per cent and 2.4 per cent, respectively, when compared on a yearly basis. In September, power demand grew 4 per cent, indicating a gradual recovery with easing of lockdowns and restrictions. The recovery continued in October, with a demand growth of 10 per cent, although with a low base effect, he added.
EBITDA for the quarter also decreased 6 per cent on a yearly basis to ₹985 crore compared with ₹1,048 crore in the same period last year.
Finance costs declined to ₹207 crore from ₹272 crore in the same period last year, which was attributed to proactive debt repayments. During the quarter, JSW Energy’s net debt got reduced by ₹822 crore and for the first half of this fiscal, it reduced debt by ₹1,274 crore. This takes its net debt to equity ratio to 0.59x.
Consolidated net debt as on September 30, excluding short-term working capital debt, was ₹7,671 crore.