JSW Energy takes Rs 109 cr hit in Q2 on forex losses

MUMBAI: JSW Energy reported a loss of Rs109 crore in the second quarter ended September 30, 2011, but the company hopes to return to profits in the current quarter as it expects coal prices to fall and tariffs to rise.

JSW Energy’s bottomline plummeted from a profit of Rs184.5 crore in the July-September quarter a year ago as its Rajasthan unit remained idle.

Besides, there was a fall in the price of power sold in short-term market and a forex loss on overseas liabilities. “Due to the euro zone crisis, the rupee appreciated almost 10% in the last quarter. This has resulted in a foreign exchange loss of Rs78.8 crore,” Lalit Kumar Gupta, joint MD and CEO said.

Net sales rose to Rs965.5 crore in the quarter from Rs774.6 crore a year ago. The company’s Rajasthan power project remained shut for the entire quarter due to pending tariff approval by Rajasthan Elecrtricity Regulatory Commission.

The Rajasthan regulator okayed the tariff hike in an interim order this September. The company said that the output was lower from other plants due to heavy monsoon and delays by distribution companies in procuring power.

“We had expected that following the Eurozone crisis, coal prices would see a correction but it did not happen in the second quarter. But in the last one month we have seen some correction, around 5%, and hope to see some more correction,” Lalit Kumar Gupta, joint managing director and chief executive officer said.