JSW Energy Profit Gets Hammered Due To Slackening In Sales
DSIJ Intelligence / 30 Apr 2014
JSW Energy a part of JSW Group has announced its quarterly result for the fiscal year 2014. On the financial performance, the company has posted a weak set of numbers during this quarter. Today (April 30, 2014) the scrip of the company opened at Rs 56.55 and closed at Rs 53.55, down by 5.6% on intraday trading.
JSW Energy a part of JSW Group has announced its quarterly result for the fiscal year 2014. The company is engaged in the business of power in the states like, Karnataka, Maharashtra, Rajasthan, Himachal Pradesh and Chhattisgarh. On the financial performance, the company has posted a weak set of numbers during this quarter.
JSW Energy posted a total revenue of Rs 2058.27 crore during Q4FY14, reporting a fall of 10.59% on yearly basis. The sales of the company have reduced due to low generation of power. It has reported a net generation of 3577 million units, down by 23.66% on a YoY basis in the March 2014 quarter. The operating performance was also weak during this quarter. The plant load factor (PLF) has reduced to 62% compared to 85.48% reported a year before. While on the sequential basis also the PLF has deteriorated. The PLF during the Q3FY14 was 63.95%. It’s per unit realisations increased by 17.18% to Rs 5.75 during the quarter on a YoY basis. On sequential basis too realisations have increased by 8%. Though, per unit realisation has increased but as the generation has subdued the total revenue of the company has reduced.
The EBITDA of the company has reduced by 13% YoY to Rs 746 crore during the last quarter of FY14. The EBITDA declined due to increase in cost of raw material as proportionate to sales. The cost of raw material was 47.57% of total sales during Q4FY14 as against 43.19% during Q4FY13.
As far as margin is concerned the EBITDA margin of the company has deteriorated by 103 basis points to 37.27% during the last quarter of fiscal year 2014. In addition to the increase in cost of raw material as proportioanate to sales the margin of the company reduced due to increase in depreciation (up by 14%) and other expense (up by 11%) on yearly basis.
The company has posted profit after tax (PAT) of Rs 174.6 crore for the quarter ended March 2014 as against Rs 335.69 crore during Q4FY13. Increase in finance cost (18%) and reduction in other income (11%) on yearly basis has added to fall in profit during this quarter.
The stock is currently trading at a P/E of 11.64x. The company has recommended a dividend of Rs 2 per share for FY14. Today (April 30, 2014) the scrip of the company opened at Rs 56.55 and closed at Rs 53.55, down by 5.6% on intraday trading.
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