BENGALURU (Reuters) – India’s JSW Energy reported a jump in third-quarter profit on Tuesday, helped by greater power demand and lower fuel costs.
India’s electricity generation rose 8.7% year-on-year in the December quarter, which analysts attributed to festive activities and strong industrial demand.
The country’s average peak demand during the quarter increased 13.8% year-on-year to 218 gigawatts (GW), analysts said.
This, combined with growing industrial output, helped JSW Energy report a consolidated net profit of 2.31 billion rupees ($27.8 million), up 28% from last year.
India’s industrial output grew at its fastest pace in 16 months in October, while electricity generation rose 20.4%, data from the Ministry of Statistics showed.
Industrial output rose 2.4 year-on-year in November, while data for December is due in February.
The company’s revenue from operations rose 13%, while fuel costs, which includes expenses for coal and is the company’s largest cost, fell nearly 20%.
Rapid urbanisation, government-led capital expenditure and a strong investment cycle are expected to boost overall power demand in the medium term, the company said in a statement.
JSW Energy, part of billionaire Sajjan Jindal-led JSW Group, has a total power generation capacity of 9.8 GW, of which the installed capacity is 6.8 GW. Under-construction capacity of 3 GW is expected to be commissioned by 2024.
($1 = 83.1210 Indian rupees)
(Reporting by Ashish Chandra and Varun Vyas in Bengaluru; Editing by Varun H K)
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