JSW Energy, part of the Sajjan Jindal-led JSW Group, has posted a 6 per cent growth in net profit for the quarter ended June 2018 at ₹229 crore, against ₹217 crore in the previous year period. Its revenue during the quarter was up 4 per cent at ₹2,428 crore (₹2,334 crore).
The company said the moderate growth as well as 14 per cent decline in Ebitda were due to lower generation at its 300 MW Baspa hydro power plant in Himachal Pradesh and a 24 per rise in fuel cost. Higher prices of imported fuel offset the higher earnings from the sale of power at the merchant market, where the tariff averaged ₹4.13 per unit during the quarter.
JSW Energy has tweaked its strategy for the electric vehicles (EV) business, which it entered last year, deciding to focus on passenger vehicles rather than commercial vehicles. However, though the company had earlier approved a ₹6,500-crore capex plan for the business, it is yet to finalise a business model for it.
“The company is still deciding between partnering with OEMs and developing our own platform for EVs with technology support from one of the industry leaders,” JSW Energy CFO Jyoti Kumar Agarwal told the media here.
New facilities
He added that the company is negotiating compensation packages with several States where JSW might set up manufacturing facilities. Earlier this year, it signed deals to set up plants in Maharashtra and Gujarat.
The company had earlier this year also proposed a ₹1,200-crore capex plan for the renewable energy business for FY19. However, given the change in China’s internal policies, which is expected to bring down the prices of solar PV models, JSW Energy has put its plan to make solar modules on hold, said Sharad Mahendra, Executive Vice-President.