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JSW Energy Q3 profit trebles to Rs 146 crore; company eyes stressed assets

For JSW Energy, PLF of operational capacities improved to 60% from 58%.

, ET Bureau|
Jan 30, 2019, 08.47 PM IST
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For JSW Energy, PLF of operational capacities improved to 60% from 58%.
Mumbai: JSW Energy’s consolidated net profit trebled in the third quarter, driven by better realisation on electricity sold both on the short-term market and through power-purchase agreements.

The Sajjan Jindal-led power producer posted a profit of Rs 146 crore in the quarter through December, compared with Rs 47 crore a year earlier. Consolidated revenue rose 20% to Rs 2,492 crore.

The company posted a comprehensive loss, a loss due to non-operational items, of Rs 330 crore for the quarter, against a Rs 189 crore profit a year earlier, as it took a mark-to-market loss of Rs 524 crore due to a decline in the value of shares it holds in group company JSW Steel.

“This kind of power demand growth, we have seen after a long time and it has also reflected in the higher plant load factor (PLF) for the industry; the thermal PLF for the industry has gone up 2% year-on-year,” chief executive Prashant Jain told reporters.

For JSW Energy, PLF of operational capacities improved to 60% from 58%.

The company is also upbeat on its acquisition plans and a proposed entry into electric vehicles.

“We expect more deals to happen for resolution of stressed assets in the next 12 months than in the last 12 months. The time has come when consolidation has to happen and we are keen to participate,” Jain, also the company’s joint managing director, said.

“Given the size of our balance sheet, we have a huge appetite for acquisitions but it does not mean we will only invest in that. We also have plans for electric vehicles,” Jain said.

He said the company would likely announce details of its products and plant for the electric vehicle business in the ongoing quarter. But the plan has undergone some changes so as to focus only on passenger vehicles, dropping that to look at commercial vehicles, battery storage and charging infrastructure. However, the initial planned investment of Rs 6,500 crore remains unchanged.

“We are not commenting on the earlier target of 2020 for electric vehicles; we may still be able to launch it by then. But we expect three-four years of time for the investments to be rolled out,” Jain said.

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