JSW Energy reports 9% rise in Q4 consol profit

MUMBAI: JSW Energy on Monday reported a modest 9% year-on-year growth in net profit in the fourth quarter of 2011-12 at Rs 225.32 crore, as gains from higher generation in the quarter was partly offset by high interest and depreciation cost.

The Sajjan Jindal-led power company's total income rose 44% to Rs 2,081.23 crore. The company also booked a one-time gain of Rs 62 crores "due to the unusual and sharp movement in the value of the Indian rupee against US Dollar," the company said in a statement.

During the quarter, its arm South African Coal Mining Holding extracted 193,786 tonnes of raw coal from the existing block and sold 125,086 tonnes. "High stripping ratio, transportation bottlenecks and increased logistics costs have continued to compress the margins," the company said.

"The enhancement in power generation capacity and strain on the fiscal position of the utilities are expected to exert pressure on the merchant (power) rates and have consequential impact on margins of generating companies," JSW Energy said.

The power utility's cost of fuel soared almost 33% to Rs 1,119.91 crore. "While the imported coal prices have slightly moderated due to weak global demand for thermal coal, the continued depreciation of the rupee threatens to negate the benefit," JSW Energy said.

"The waiver of custom duty and reduction in the counter-vailing duty on imported coal as announced in the last Union Budget is expected to rationalise the fuel cost in the FY 2012-13," the company said.

In the quarter ended March, JSW Energy clocked its highest quarterly net generation of 4,618 million units, up 53% on year. The company has the operational capacity of 2,600 mw, apart from 540 mw of generating capacity under construction.

JSW Energy said it concluded the sale of its 74% holding in the joint venture company JSW Energy Bengal to its partner JSW Bengal Steel.