OREANDA-NEWS. January 24, 2013. The Board of JSW Energy Ltd., at its meeting held at Mumbai, approved the results for the quarter and nine months ended December 31, 2012.

Key highlights for Q3’ FY 13 (Consolidated):

• PLF at 91.34% as against 82.30% in the corresponding quarter of the previous year

• Net generation of 4,770 million units, up 20% over corresponding quarter of the previous year

• Total Income from operations 2,365 crores, up 34% over corresponding quarter of the previous year

• EBITDA of 867 crores, up 129% over corresponding quarter of the previous year

• PAT of 311 crores, as against a Net loss of 83 crores during corresponding quarter of the previous year

Key highlights for 9 months’ FY 13 (Consolidated):

• PLF at 90.19% as against 70.79% in the corresponding period of the previous year

• Net generation of 14,094 million units, up 57% over corresponding period of the previous year

• Total Income from operations 6,633 crores, up 64 % over corresponding period of the previous year

• EBITDA of 2,149 crores, up 119% over corresponding period of the previous year

• PAT of 568 crores, as against a net loss of 55 crores during corresponding period of the previous year

Operational Performance (Consolidated)

The operational performance during the quarter saw improvement on the back of improved operations of the Barmer unit while the Vijayanagar & Ratnagiri plants continued to maintain high availability. The Company achieved the highest Quarterly net generation of 4770 MU’s, despite intermittent backing down of some units during the quarter.

The Plant Load Factor (PLF) of all the three plants, achieved during Q3 2012-13 were as under:

• Vijayanagar: The plant achieved average PLF of 102% as against 85% in the corresponding quarter of the previous year

• Ratnagiri: The plant operated at an average PLF of 88%, against an average PLF of 83% in the corresponding quarter of the previous year

• Barmer - The four operational units achieved an average PLF of 81% as against an average PLF of 74% in the corresponding quarter of the previous year.

The net generation from the different units were as under:

(figures in million units)

Location

Q3, FY 12-13

Q3, FY 11-12

Vijayanagar

1,789

1,486

Ratnagiri

2,132

1,921

Barmer

849

558

Total

4,770

3,965

During the Quarter the Company sold net 110 million units banked in the previous Quarters.

The merchant sales during the quarter were 2,616 million units (54%) and the sales under Long Term PPA were 2,043 million units (42%). The Company has also generated 221 million units (4%) under the Conversion Agreement during the quarter.

Fuel

Imported thermal coal prices remained range bound during the quarter with the API 4 index moving between USD 83 ~ 89 per tonne. However, the rupee continued to remain under pressure against the USD, containing the gains due to fall in international coal prices. The Company continues its efforts to optimise the blending mix of different categories of coal as well as identify new sources of coal aimed at reducing the fuel costs.

The fuel cost during the quarter was 1,047 crore, a decrease of 2% over the corresponding quarter of the previous year.

South African Coal Mining Holding (Pty) Ltd (SACMH):

During the quarter, SACMH mined 30,939 tonnes of ROM Coal from the underground mine in South Africa. SACMH also bought 43,734 tonnes of ROM Coal for washing and blending with its product. The entire coal extraction has been completed in the existing mining lease area and requisite licences are awaited for the new Mining Area (Voorslag). Accordingly, SACMH has suspended its operations and retrenched most of its staff at the present moment for containing its costs. SACMH is now exploring various alternative business options to effectively utilise the assets and concessions.

Financial Performance (Consolidated)

During the quarter, the Company has achieved a Total Income from operations of 2,365 crores and EBITDA of 867 crores, an increase of 34% and 129% respectively over the corresponding quarter of the previous year. The increase in profitability is primarily due to increase in generation, improved tariff and relatively lower fuel cost. The Company has earned a Profit after tax of 311 crores during the current quarter as against Net Loss of 83 crores in the corresponding quarter of the previous year. The depreciation of the Indian Rupee against the US dollar resulted in an exceptional net foreign exchange loss of 61 crores during the quarter.

The Consolidated net worth and consolidated debt as at December 31, 2012 was 6,269 crores and 10,158 crores respectively resulting in a debt equity ratio of 1.62 times.

Projects Update:

a) Status of projects under Construction and Implementation 1,200 MW - at Ratnagiri

The FGD for 2 units were commissioned in Q3’ 2013 while another FGD was further commissioned in January 2013. The last FGD is expected to be completed by end February 2013.

1,080 MW - at Barmer

During the quarter, Unit 7 and Unit 8 of 135 MW each at Barmer have been synchronised. The Company expects to start the generation from Unit no 5 to 8, during the last quarter of FY 2012-13, as envisaged earlier. Approvals are awaited for enhancement of lignite mining for the balance units. The project cost is estimated at 7,223 crores and project expenditure incurred upto December 31, 2012 is 6,740 crores.

240 MW - at Kutehr, Himachal Pradesh (HP)

The 2nd stage EC has been received for this project on January 11, 2013 and with this the company has received all the requisite environmental approvals for the project. The land acquisition process for the project is progressing satisfactorily. Project expenditure spent till December 31, 2012 is 214 crores.

Barmer Lignite Mining Co. Ltd (BLMCL)

During the quarter, BLMCL has supplied 942,363 tonnes of lignite to RWPL. The possession of land for Jalipa mines is in progress and the Company has initiated the process for transfer of Jalipa Lignite Mining lease, as well as efforts for enhancing the production from the Kapurdi Mines. The project cost is estimated at 1,800 crore (comprising of both Kapurdi & Jalipa mines) and cost incurred till December 31, 2012 is 1,304 crores.

(b) Projects under Development

1320 MW Chhattisgarh Project

The land acquisition for the project, initiated by Chhattisgarh State Industrial Development Corporation (CSIDC) is progressing steadily and 32% of land for the projects has been acquired. Other clearances in terms of forest and environmental approvals are awaited. Project expenditure incurred till December 31, 2012 is 108 crore.

Outlook

Global economic outlook continues to remain weak with the major developed economies taking measures to stave off recessionary trends. Policy measures adopted by the governments and the central bankers in USA and Europe have brought in certain stability to an otherwise turbulent financial market.

The domestic economic outlook seems set to improve on the back of the recent policy measures adopted by the government to contain fiscal deficit. The inflation has shown signs of easing and is expected to provide impetus to the Central Bank to undertake shift in policy towards growth. The power sector has had mixed bag - while retail tariff revision has been initiated by most of the discoms, the critical issues plaguing the sectors in terms of fuel availability, modifications to standard bidding documents and procurement of long term power are yet to be resolved. The imported coal prices are expected to remain under pressure till the global economic outlook improves. The merchant prices are also expected to be under pressure with the addition of new generation capacities and as issues on the availability of raw materials to these units get addressed.