JSW Energy reports Rs480 crore loss in March quarter

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Mumbai: JSW Energy on Thursday reported consolidated net loss of Rs480.05 crore in the January-March quarter of this fiscal, compared to a net profit of Rs24.76 crore in the year-ago period.

The company made a one-time provisions of Rs815 crore, writing down values of a series of investments. The biggest among these was a net write-off of Rs417.94 crore in the March quarter to an outstanding loan of Rs752 crore made to Jaiprakash Power Ventures Ltd. for a proposed acquisition of its 500MW Bina thermal power plant.

“JPVL has been a stressed asset for its lenders. The company is in discussion with its lenders and vendors to recover loans,” Prashant Jain, joint MD and CEO, JSW Energy, said. “If this isn’t solved through negotiations, we will not hesitate to take the company to the bankruptcy court to recover our dues.”

JSW Energy’s electric vehicle business will hit the markets in 2020 with commercial vehicles—buses and light pick-up trucks—and not with the earlier strategy of passenger vehicles. With its widened scope, the total capital expenditure for the EV business has been expanded to Rs6,500 crore over the next 3-4 years, from the previously stated figure of Rs4,000 crore.

Of this, Rs1,000 crore will be spent in FY19. The company is looking for partnerships for its EV platform and storage battery technology, Jain said.

The company has signed MoUs with the Gujarat and Maharashtra governments to set up production plants. Passenger vehicles, now part of the second phase of plans, are expected to hit the market in 2021-22.

JSW Energy has also written down the value of its thermal power equipment manufacturing JV with Toshiba to zero. The company is looking for a buyer for the business, Jain added.

The company also has an outstanding loan or Rs500 crore to Jindal Steel and Power, owned by Naveen Jindal, younger brother to JSW group chairman Sajjan Jindal. On the status of this loan, Jyoti Kumar Agarwal, director finance, JSW Energy said: “JSPL is not facing the same kind of stress as Jaiprakash. The loan is being serviced. We have just received a request from JSPL to extend the payment date. We’re hoping to find a resolution.”

The company reduced its net debt by Rs3,106 crore in FY18 to Rs11,278 crore. Consolidated net profit for FY18 was Rs84.91 crore, 86% down year-on-year.

For the March quarter, total income was Rs1,879 crore, down from Rs1,935 crore in the year-ago period. Fuel costs rose 11% over the period, primarily due to the increase in international coal prices. The company’s net power generation was 4,355 million units (MUs) for Q4, against 4,063MUs in the year-ago period.

The plant load-factor at its Vijayanagar unit was 50%, compared to 77% in the previous year. The Ratnagiri plant reported PLF of 47% and Himachal Pradesh of 14%. The company has installed power generation capacity—thermal and hydel—of roughly 4,500MW.

The company is also spending Rs1,200 crore for its expanding capacity in solar power generation by 200MW in FY19. The company is putting its focus on rooftop solar installations, starting with 50-60MW in its existing plants. Initial plans include rooftop and floating plants at Vijayanagar (32MW) and Salem (4MW). It is also setting up a 1000MW solar panel manufacturing and cell-and-wafer manufacturing plant at Vijayanagar this year. It currently has installed solar capacity of 17MW.livemint