10 Companies to Gain from the Budget 2012
JSW ENERGY
JSW Energy will be the major recipient of the budget among utilities. Total exemption from customs duty on imported coal and a concessional CVD of 1 percent will make the coal cheaper by up to 8 percent. This decrease in fuel cost will have an important impact on the company's profitability as JSW Energy is entirely dependent on imported coal till 2015.
Entire fuel cost is around 60-65 percent of sales. The company sells majority of its power on a merchant basis and most of its operations are in South, where tariffs are high in contrast to other states. Moreover, the company, which has important debt on its balance sheet, will also benefit from access to foreign loans to part finance rupee debt.
