Jaiprakash Power

Once again, interest costs have pushed the company into the red, bringing forth the glaring reality that high debt is the root cause of all ails of JP Power. The company’s net revenue was down 5% at Rs.682 crore. It has a power generation capacity of 4200 MW of which Hydro is at 400 MW and Thermal is at 3800 MW. 70% of the power is generated in the first half of any fiscal and balance 30% comes in the second half – this could be the reason for the lower revenue.

The company made profit at EBITDA level at Rs.158 crore, down 28% but then came the gargantuan interest outgo of Rs.424 crore – this is 62% of the net revenue earned. JP Power ended the quarter with a net loss at Rs.230 crore, up from Rs.173 crore in Q3 but down from Rs.336 crore loss of Q4FY16.

JP Power ended FY17 with a consolidated net loss of Rs.1233 crore, up from Rs.255 crore loss of FY16. Interest outgo for the fiscal as up 11% at Rs.2750 crore. Borrowings for the year stood at Rs.21,098 crore.

The SDR was invoked in the company in July 2016 after which it allotted 305.80 crore equity shares @ Rs.10/share to banks/institutions upon conversion of part of outstanding loans/interest  towards implementation of SDR. Accordingly, its equity capital has risen from Rs.2938 crore to Rs.5996 crore and the lenders shareholding is at 51%.