JSW Energy has reported a 15 per cent decline in net profit for the quarter ending June 30 due to weak demand for electricity and a planned shutdown of its units.

The company reported a net profit of ₹277 crore, against ₹325 crore in the year ago period. Net generation of electricity was at 4,480 million units during the quarter (5,006 million units).

Net sales for the quarter declined 18 per cent to ₹2,069 crore (₹2,521 crore).

JSW Energy achieved an average deemed plant load factor (PLF) of 75 per cent during the quarter (84 per cent). PLF is an indicator of the ability of a unit to produce power given the fuel supply, health of the machinery and market demand.

The company said in a statement that the country’s economic recovery looks promising with subdued commodity prices providing support for increased fiscal spending.

However, low industrial energy demand, unseasonal rains and poor financial health of State-controlled power distribution companies has resulted in overall demand contraction for power in India in Q1 FY2016. Meanwhile, new capacities are getting commissioned, resulting in lower PLF and reduction in the spot tariff rates, the statement said.

The EBITDA for the quarter was ₹886 crore (₹948 crore).

Company Chairman Sajjan Jindal, addressing media persons after the AGM, said that given the market conditions the company is not considering setting up any greenfield project but is looking for stressed assets of other power firms for further expansion.

Declares dividend

The company declared a dividend of ₹2 (20 per cent) per equity share on 164 crore equity shares of ₹10 each for the year ended March 31, 2015 — at the same level as last year.

At the closing of market hours on the BSE the stock was traded at ₹98.90, an increase of 1.80 per cent over the previous close.

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