JP Power reports Q3 profit of Rs 172.90 crore, sales surge 82%

JP Power, a leading Indian power company, 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 year’s profit of Rs 68.66 crore. This comes after a loss of Rs 217.97 crore in the same quarter last year.

The company’s revenue for the quarter also saw a remarkable growth, with a surge of 82.36% to reach Rs 2,190 crore, compared to Rs 1,201.05 crore in the corresponding period of the previous year. The power segment revenue stood at Rs 1,530.53 crore, while the coal segment and sands mining recorded revenues of Rs 235.37 crore and Rs 659.87 crore, respectively.

Prior to the announcement, JP Power’s shares witnessed a 4.96% increase, closing at Rs 16.93 on the Bombay Stock Exchange (BSE).

In regards to the Vishnuprayag Hydro Electric Plant (VHEP), the company highlighted that power generation is traditionally higher in the first half of the financial year compared to the second half. Thus, the first two quarters typically account for 70-75% of the annual power generation, while the last two quarters contribute the remaining 30-25%.

The company also disclosed its corporate guarantee (CG) 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, has not been carried out according to the applicable Ind-AS. Discussions between JP Power and SBI are currently underway to release the guarantee, with no expected material impact on the company’s financial results, as stated by the Management.

In their report on the financial results, the Auditors drew attention to the fair valuation of the guarantee. However, the Management deemed it unnecessary to provide for any material impact in their financial results and stated that there will be no such impact.