JP Power Reports Impressive Q3 Results with Profit of Rs 172.90 Crore

JP Power, a leading power company in India, has announced its financial results for the third quarter of the fiscal year. The company recorded a net profit of Rs 172.90 crore, a significant increase compared to the previous quarter’s profit of Rs 68.66 crore. This also marks a substantial improvement from the loss of Rs 217.97 crore reported in the same period last year.

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The company’s total revenue for the quarter stood at Rs 2,190 crore, demonstrating a remarkable growth rate of 82.36% compared to Rs 1,201.05 crore in the same period last year. The power segment revenue accounted for Rs 1,530.53 crore, followed by the coal segment with Rs 235.37 crore and sands mining with Rs 659.87 crore.

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Prior to the earnings announcement, JP Power’s stock price rose by 4.96% to close at Rs 16.93 on the Bombay Stock Exchange (BSE), indicating positive investor sentiment.

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In relation to the Vishnuprayag Hydro Electric Plant (VHEP), the company explained that water availability traditionally decreases during the second half of the financial year. Consequently, approximately 25-30% of the annual power generation occurs in the last two quarters, while the remaining 70-75% is generated in the first two quarters.

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JP Power clarified that it had provided a corporate guarantee (CG) of $150 million to the State Bank of India (SBI) for loans granted to Jaiprakash Associates Limited (JAL). The fair valuation of this guarantee, as of December 31, 2023, is still pending as per the applicable Ind-AS regulations.

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The company is currently engaged in discussions with SBI regarding the release of the guarantee, as it believes that the fair valuation will not have a material impact on the financial results. The auditors have also acknowledged this in their report on the financial results.

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Overall, JP Power’s Q3 results indicate strong performance and a positive outlook for the company within the power sector.