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

JP Power, a leading power company, announced its financial results for the third quarter of the fiscal year. The company reported a net profit of Rs 172.90 crore, marking a significant increase from the previous quarter. This profit surge can be attributed to the company’s efforts in improving its operations and increasing sales.

The revenue for the quarter was up by an impressive 82.36%, reaching Rs 2,190 crore compared to the same quarter last year. The power segment revenue stood at Rs 1,530.53 crore, while coal segment revenue was Rs 235.37 crore and sands mining segment generated Rs 659.87 crore in revenue.

Investors showed their confidence in JP Power’s performance, as the stock price rose by 4.96% on the BSE ahead of the earnings announcement. The positive results indicate the company’s success in navigating through challenges and delivering strong financial performance.

One of the factors contributing to the fluctuation in power generation is the water availability at Vishnuprayag Hydro Electric Plant (VHEP). Typically, the water availability is higher in the first half of the financial year compared to the second half. As a result, a significant portion of the power generation occurs in the first two quarters, while the remaining is generated in the last two quarters.

JP Power also disclosed its corporate guarantee (CG) provided to State Bank of India (SBI) for loans granted to Jaiprakash Associates Limited (JAL). However, the fair valuation of this guarantee as of December 31, 2023, has not been done according to the applicable Ind-AS. The company is currently in discussion with SBI regarding the release of the guarantee.

The management believes that the fair valuation of the guarantee will not have a material impact on the financial results and, therefore, has not accounted for it. However, the auditors have drawn attention to this matter in their report on the financial results.