JSW Energy’s first-quarter profit slumped by more than a third as the company’s fuel cost rose and it incurred a loss due to depreciation of the rupee against the dollar.
On a standalone basis, JSW Energy reported a net profit of about Rs 57 crore against Rs 190 crore, a year ago. Total income rose 36 per cent to about Rs 1,606 crore (Rs 1,180.76 crore a year ago).
Fuel costs rose 53 per cent to about Rs 1,054 crore (Rs 688.16 crore a year ago).
“Imported thermal coal prices corrected sharply during the quarter due to weak global economy and spurt in thermal coal exports from the US. However, reductions in the imported thermal coal prices have largely been offset due to steep depreciation in the Indian rupee against the US dollar during the quarter,” the company said in a statement.
Power deficit
The company incurred a loss of about Rs 226 crore on account of the rupee depreciation. Rupee depreciated about 9 per cent in the April-June quarter.
“The power sector has witnessed a lopsided and half-baked approach to the reforms which has impacted investments in the sector. Even after significant ramp-up in generation capacity, the country is facing a double-digit peak power deficit,” Mr Sajjan Jindal, Chairman & Managing Director, said at the company’s Annual General Meeting. The country faces a peak deficit of 11 per cent, the company said in its annual report for the year ended March 2012.
CONSOLIDATED FIGURES
The company, which is engaged in power generation, transmission, power trading, mining and equipment manufacturing segments, reported a sharp decline in consolidated net profit in the first quarter at Rs 3.41 crore against Rs 136.31 crore, a year ago.
Total income grew 72 per cent to about Rs 2,192 crore (about Rs 1,274 crore a year ago).
The company’s shares closed down 0.19 per cent at Rs 53.10 on the BSE.