Jaiprakash Power

Jaiprakash Power Ventures posted a net loss of Rs.196 crore with net sales dropping 38% (YoY) to Rs.750 crore. Its cost of operation and maintenance during the quarter rose by a whopping 219% (YoY) to Rs.147 crore, up from Rs.46 crore. Fuel and raw material cost was up 37%. Lower other expenses, depreciation and employee cost helped keep the total costs going through the roof, yet it remained 21% up. The company has said that lower  production and lower average sale price of merchant power – down from Rs.3.07/unit to Rs.2.83/unit (QoQ) pulled down the numbers. The company had a deferred tax write back of Rs.54 crore and to that extent the loss was shored up.

Operating profit was at Rs.186 crore, down 75%. Of course what really pushed the company into the red is the interest cost – it was at Rs.450 crore, down 39% (YoY). Though the burden has come, the debt continues to remain high. The consolidated debt of the JP Group stands at Rs.58,250 crore and that pf JP Power is at Rs.22,415 crore. The company currently has a total power capacity of 2200 MW of which 440 MW comes from Hydro and 1820 MW from thermal.