OREANDA-NEWS. August 8, 2011. The Board of JSW Energy Ltd at its meeting held today at Mumbai approved the Results for the first quarter of the fiscal year 2011-12, ended on June 30, 2011.

Key highlights for Q1' FY 2011-12 (consolidated)

•           Achieved COD for 3rd unit of 300 MW at Ratnagiri.

•           Net Generation at 2422 MU's (1827 MU's in Q1, FY 2011)

•           Total Income at Rs.1294 crores (Rs. 963 crores in Q1, FY 2011)

•           EBITDA at Rs. 415 crores (Rs. 483 crores in Q1, FY 2011)

•           Refinanced debt aggregating to Rs. 554 crores in the Company resulting in reduction in interest rate by 0.73%

•           Environment Clearance received for 240 MW Kutehr Hydro Project.

Operational Performance

The operational performance during the quarter was impacted mainly due to deferment of planned power procurement by distribution licensees, on-set of early monsoon and prolonged hearing on matter related to tariff fixation.

The Plant Load Factor (PLF) achieved during Q1, FY 2011-12 were as under:

•           Vijavanagar:-

The units have achieved average PLF of 79.92% as against 99.44% in the corresponding quarter in the previous year. The lower PLF was due to shutdown taken in one unit of 300 MW, besides lower tie-up of power due to sudden decision of distribution companies in deferring the planned procurement of power with the on-set of early monsoon.

•           Ratnagiri:-

The units operated at an average PLF of 64.73% during the quarter. The PLF was lower due to planned shutdown of 1st unit of 300 MW during May 2011, for about 20 days and reduced schedule from distribution companies despite having PPA / firm tie up. The heavy rains especially in Ratnagiri region also affected the operations adversely.

•           Barmer:-

Two units of 135 MW operated intermittently upto 24th April 2011 on imported coal. However, in the absence of provisional tariff approval as also the provisional transfer price for supply of lignite by Barmer Lignite Mining Company Limited (BLMCL) to RajWest Power Limited (RWPL) by Rajasthan Electricity Regulatory Commission (RERC), the operations in the units remained suspended. The hearings on the aforesaid tariff petitions have concluded on July 12, 2011 and the order to RERC is expected shortly.

The Company achieved merchant sales of 1,750 million units during the quarter ended June 30, 2011. The merchant sale works out to 72% of Consolidated Net Generation as against 69% in the corresponding previous quarter. The increase is due to sale of additional power generated by the two new units of 300 MW each commissioned at Ratnagiri on merchant basis. The balance 672 million units were sold under long term PPAs.

The net generation from the different units were as under:

figures in million units)

 

Q1, FY 11-12

Q1 FY 2010-11

Vijayanagar

1,385

1,728

Ratnagiri

988

NA

Barmer

49

99

Total

2,422

1,827

Financial Performance

During the quarter, the company achieved a Total Income of Rs. 1,294 crores, EBITDA of Rs. 415 crores and Profit after Tax of Rs. 136 crores. The increase in the costs of fuel has impacted the margins during the quarter compared to the corresponding quarter of the previous year.

During the quarter the company has refinanced Rs. 554 crore of long term rupee debt at 10.50% p.a. against existing rate of 11.23% p.a. With the initiative taken by the Company, the average rate of interest has fallen down from 10.20% to 10.12% on standalone debt aggregating to Rs. 5,354 crores.

The consolidated net worth and consolidated debt as at June 30, 2011 was Rs. 5,805 crores and Rs. 9,722 crores respectively resulting in a consolidated debt equity ratio of 1:1.67

Fuel

During the quarter, the fuel cost was at Rs.708 crores, an increase of 65% primarily due to increase in volume of generation, firm up of prices of imported coal and lower efficiency due to lower generation. We expect various measures adopted by the company to mitigate the rise in imported coal prices & reduce fuel costs to materialise upon stabilised operations in the coming quarters.

The Company has during the Quarter ended June 30, 2011 further acquired (through its wholly owned overseas step down subsidiary) an additional stake of 4.42 % in South African Coal Mining Holdings Limited (SACMH) which has resulted in its direct stake in SACMH going up to 34.79%. The company currently controls, directly and indirectly, 61.71% in SACMH as on June 30, 2011.

During the quarter, SACMH has sold 100,754 MT's of Coal at an average realisation of USD 118 per tonne.

The Company continues to evaluate various opportunities to secure the fuel requirements by acquiring coal mines overseas.

Projects Update:

a) Status of projects under Construction and Implementation

(4 X 300) 1,200 MW - at Ratnagiri, Maharashtra :-

Unit 3 achieved commercial operations from May 9, 2011 while the Unit 4 is at an advanced stage of commissioning and expected to be synchronised shortly, upon which the entire 1,200 MW capacity at Ratnagiri will become fully operational. The total Project Cost including FGD is estimated at Rs. 5,700 crores and project expenditure incurred till June 30, 2011 is Rs. 5,002 crores.

(8 X 135) 1.080 MW - at Barmer. Raiasthan :-

The 3rd & 4th Units have been successfully synchronised and are expected to be commissioned in Quarter 2, FY 2012. The remaining 4 Units are targeted to be commissioned in stages during FY 2012. The company has incurred project expenditure of Rs. 5,311 crores as of June 30, 2011 against an estimated cost of Rs. 6,085 crores.

The Government of Rajasthan has since granted their in-principle consent for the proposed expansion project of 270 MW (2 x 135 MW) at Barmer.

(3 X 80) 240 MW - at Kutehr. Himachal Pradesh (HP):-

The Company has received the Environmental Clearance alongwith first stage forest clearance for this project. The process of land acquisition is underway. The negotiations for placement of orders are progressing.