India's JSW Energy Q4 profit slumps as expenses surge
BENGALURU (Reuters) - Indian power producer JSW Energy Ltd reported a slump in fourth-quarter profit on Tuesday, as a surge in fuel costs offset higher electricity generation amid strong demand.
Consolidated net profit was 2.72 billion rupees ($33.26 million) in the quarter ended March. The company said the number was not comparable to the 8.64 billion rupees profit it reported a year earlier which included a one-time gain of 4.92 billion rupees from a regulatory adjustment.
On an adjusted basis, profit fell about 27% as fuel costs surged 55% to 15.37 billion rupees. Total expenses were up 45% at 24.49 billion rupees.
The jump in costs outweighed the 9% increase in consolidated revenue from operations to 26.70 billion rupees.
Power demand in India spiked this year with the early onset of summer.
Demand in the first two months of 2023 jumped 10% year-on-year, while power generation grew at the fastest pace in 33 years, a Reuters analysis of government data showed.
In March, the Indian government directed power generators, especially coal-based ones, to expand output to meet the peak demand.
JSW generates power through both coal and renewable sources like hydro and solar.
Revenue from its mainstay thermal segment rose about 40% compared to the March quarter last year, while its renewables wing posted a 64% fall.
The company said that overall net power generation in the quarter rose 16% year-on-year at 5.1 billion units (BU), driven by renewable energy capacity addition and strong long-term and merchant volumes.
The board of directors of the company also declared a dividend of 2 rupees per share held and approved the reappointment of Sajjan Jindal as its chairman and managing director.
Shares of JSW Energy closed up 1.22% ahead of results on Tuesday.
($1 = 81.7800 Indian rupees)
(Reporting by Hritam Mukherjee in Bengaluru; editing by Eileen Soreng)