OREANDA-NEWS. The Board of JSW Energy Limited, at its meeting held today at Mumbai, approved the results for the Quarter ended September 30, 2014 ("2QFY15" or the "Quarter").

Consolidated Operational Performance:

During the quarter, the Company achieved a net generation of 5,236 million units with the average deemed PLF of 87%. The PLF has improved primarily due to pick up in demand in the quarter.

PLF achieved during 2QFY15 at the respective locations was as under -

Vijayanagar achieved average PLF of 92% as against 78% in the corresponding quarter of the previous year.

Ratnagiri operated at an average PLF of 82% as against an average PLF of 74% in the corresponding quarter of the previous year.

Barmer achieved an average deemed PLF of 88% as against an average deemed PLF of 78% in the corresponding quarter of the previous year.

The merchant sales during the quarter were of 1,947 million units; the sales under Long Term PPA were of 3,289 million units.

Fuel Cost:

The fuel cost for the quarter is at 1,224 crore, higher by 19% compared to the corresponding quarter of the previous year primarily due to increased generation which was partly offset by lower coal prices.

Consolidated Financial Performance:

During the current quarter, the Total Income from operations is 2,251 crore as against 2,025 crore in the corresponding quarter of the previous year. EBITDA (before exceptional items) for the quarter is 969 crore as against 893 crore in the corresponding quarter of the previous year, higher by 9% primarily due to higher volumes and settlement of claims with project creditors during the current quarter. The Company earned a Profit after tax (PAT) of 319 crore for the current quarter as against 163 crore, up by 96% as compared to the corresponding Quarter of the previous year.

The Consolidated Net Worth and Consolidated Debt as at September 30, 2014 were 7,207 crore and 9,644 crore respectively resulting in a debt equity ratio of 1.34 times.

Projects Update:

240 MW - at Kutehr, Himachal Pradesh (HP) -

The process of selection of an EPC contractor for the project has commenced, while all the requisite environmental clearances for the project have been received. The cost incurred on the project up to September 30, 2014 is 233 crore.

Barmer Lignite Mining Co. Ltd (BLMCL) -

During the quarter BLMCL has despatched 1.70 MTPA of Lignite. Ministry of Environment and Forest (MoEF) has accorded the approval for enhancement of mining capacity at Kapurdi Lignite Mines to 7 MTPA for a period of 4 years. MoC has approved Mine Lease Transfer of Jalipa mine lease and the possession of land for Jalipa mines is in progress. The project cost is estimated at 1,800 crore (comprising both Kapurdi & Jalipa mines) and cost incurred till September 30, 2014 is 1,583 crore.

Outlook:

The policy measures being undertaken by the government and the central bank to untangle approval processes, revive the investment cycle, and boost liquidity have renewed confidence in the market and bode well for the revival of economic growth in India. The IMF as well as the World Bank now forecast India's economic growth to rise to 5.6% in FY15, and further to 6.4% in FY16.

During 2QFY15, a modest uptick in activity levels, delayed monsoon and elections related demand primarily led to all India demand for power improving by 10.9% YoY. However, international thermal coal prices continue to remain soft amidst weakened global recovery, including lower economic growth in China, coupled with a well-supplied coal market - and are likely to remain range bound.

Meanwhile, the issues related to inadequate fuel availability, lack of clarity around new bidding norms for long-term PPAs, transmission corridor issues, high T&D losses and weak financial condition of the Discoms need to be addressed in a meaningful manner for a sustainable growth of the Indian power sector. The government has demonstrated a resolve to address the structural issues impacting the power sector, and the progress so far is satisfactory.

On the back of initiatives taken by the government to jump start the economy, and benign commodity and energy prices, we believe that a revival of economic and investment cycle is likely, which, in turn, will drive power demand in the country going ahead.