JSW Energy, one of India’s biggest power generating companies, more than doubled its consolidated net profit during the June quarter on a strong growth in revenues and an exceptional item pertaining to reversal in loss.

The Mumbai-based company posted a consolidated net profit of ₹554.78 crore during the quarter ended June 30, a growth of 166 percent compared to ₹208.60 crore posted in the same quarter last year.

Consolidated revenue

Consolidated revenue from operations grew 75 percent to ₹3,026.27 crore during the reporting quarter as against ₹1,727.54 crore reported in the same quarter last year. There was as exceptional item of ₹120 crore representing reversal of loss allowance recognised in earlier years on loan given to a party.

The company’s overall generation stood higher by 14 percent on the back of strong merchant demand, better hydrology and capacity increase in renewable energy. Its total thermal generation was up 12 percent, driven by increased merchant market sales.

Long term sales

Long term sales during the quarter at 4,976 million units were at similar levels of Q1 FY22 (4,994 million units) as the higher sales at hydro business were offset by lower sales at thermal businesses. Short term sales during the quarter at 874 million units versus 147 million units in Q1 FY22 due to higher sales at both Vijayanagar and Ratnagiri plants.

India’s power demand increased by 18.6 percent in Q1 FY23, reflecting demand from northern states due to the extreme heatwave also supported by a low base of Q1 FY22. Further, the all India peak power demand touched high of 212 GW in June, up 11 percent. In line with demand, overall power generation increased by 16.8 percent Q1 FY23, led by renewable generation at 26 percent.

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