JSW EnergyNSE 1.13 % reported a 162% surge in its net profit for the third quarter at Rs 324 crore on the back of higher revenues. The consolidated net profit of the company was Rs 124 crore in the corresponding quarter a year ago.
Its joint managing director and chief executive officer Prashant Jain said the company is soon expected to announce its first green hydrogen project.
During the quarter, the company’s total revenue increased by 20% to Rs 1,984 crore from Rs 1,659 crore of the corresponding period of last year. Jain said the company witnessed an increase in short-term sales and realisation in the third quarter.
“We could increase our short-term sales in October and we made the highest EBIDTA in any quarter in the last five years. Our O&M costs have been under control and our interest costs have been lower because we have been consistently deleveraging our balance sheet,” Jain said.
He said the company managed to reduce receivables from power distribution companies year-on-year by 20%.
Ahead of the Union Budget and the polls season, Jain said electricity should be brought under GST and states announcing power tariffs concessions should make direct subsidy payments to target consumers. “Presently it is through budgetary allocations to discoms and delay causes cash flow mismatch.”
Jain also said that the central government should bring a legislation to bar states like Andhra Pradesh and Punjab from revoking executed power purchase contracts. “Reneging of contracts is a big setback to investors and lenders and the long-term growth of the sector,” he said.
JSW Energy targets to reach 20 Gw of power generation capacity by 2030, with about 85% of this capacity via renewable energy.
The company’s board approved re-organisation of the company’s renewable and thermal businesses in November last year. All the existing and upcoming renewable energy businesses will be housed under JSW Energy Neo Ltd, a wholly owned subsidiary of the company.
Also the company in July last year announced entering into a framework agreement with Australian Fortescue Future Industries to collaborate on green hydrogen production.
Source : Economic Times
