JP Power Q3FY14 Performance Disappoints, Registers a Net Loss of Rs. 153 Crore

The net sales of the company increased by 23.36% to reach Rs. 492.42 crore in the current quarter as compared to Rs. 399.17 crore in the corresponding quarter of previous year. The cost of operation and maintenance stood at Rs. 23.51 crore in Q3FY14 as against Rs. 18.21 crore in Q3FY13, up 29.10%. The cost of fuel also showed a slight increase to reach Rs. 110.82 crore in the current quarter from Rs. 101.65 crore in the same quarter last fiscal. Other expenses of the company increased by 26.76% to Rs. 323.39 crore in this quarter as compared to Rs. 255.12 crore in the same quarter last year. Overall, the company has posted a net loss of Rs. 153.05 crore in the quarter ended 31 December, 2013 as against a net loss of Rs. 97.58 crore in the corresponding quarter last year.

For the nine-month period ended 31 December, 2013, the net sales of the company was registered at Rs. 2247.16 crore as compared to Rs. 1839.68 crore in the previous year, up 22.15%. The total expenses came in at Rs. 946.26 crore as against Rs. 549.60 crore last year. Net profit for the period stood at Rs. 191.71 crore as compared to Rs. 451.41 crore last year, showing a decline of 57.53%.

In respect of Hydro Power Projects, the water availability in the first half of the financial year is higher as compared to the second half. As such, the power generation in the first two quarters is about 70% of the annual power generation, while balance 30% is generated in third and fourth quarter.

The results under review are in respect of 300 MW Jaypee Baspa II H.E. Plant, 400 MW Jaypee Vishnuprayag H.E. Plant, 1000 MW Jaypee Karcham Wangtoo H.E. Plant and 500 MW Jaypee Bina Thermal Power Plant. The corresponding figures of the quarter/period in the previous year are only for 300 MW Baspa II H.E. Plant, 400 MW Jaypee Vishnuprayag H.E. Plant and 1000 MW Jaypee Karcham Wangtoo H.E. Plant and 250 MW Jaypee Bina Thermal Power Plant and hence not comparable.