India’s JSW Energy Q2 profit jumps 83% on power demand surge

BENGALURU (Reuters) – Indian power producer JSW Energy on Friday reported a near 83% rise in second-quarter profit, boosted by a surge in power demand and fall in fuel costs.

The company, part of billionaire Sajjan Jindal-led JSW Group, saw its consolidated net profit rise to 8.50 billion rupees ($102.29 million) in the quarter ending Sept. 30, compared with 4.66 billion rupees a year ago.

Revenue from operations rose 36.5% to 32.59 billion rupees in the September quarter. Fuel cost, which forms 41% of the total expense fell nearly 17%.

India’s power demand has been growing rapidly after the pandemic, with strong economic growth boosting demand from factories and the summer heat increasing household consumption.

According to brokerage Elara Capital, peak power demand in India touched a high of 241 gigawatt (GW) during the quarter, with coal-based power generation, which makes up two-thirds of country’s total power output, growing 21% year-on-year.

Renewable energy generation rose 17% year-on-year.

JSW Energy said on Friday outlook for the power sector outlook was “healthy” in the medium term, as rapid urbanization and stabilization of various government schemes were expected to boost demand.

JSW Energy has a total power generation capacity of 9.8 GW, of which installed capacity is 6.8 GW. Under-construction capacity of 3 GW is expected to be commissioned by 2024.

Shares of JSW Energy closed 3.5% lower ahead of the results.

($1 = 83.0980 Indian rupees)

(Reporting by Ashish Chandra in Bengaluru; Editing by Mrigank Dhaniwala)