JP Power Reports Strong Q3 Profits and Sales Growth

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 172.85 crore, a significant increase compared to the previous quarter and a turnaround from the same period last year when it incurred a loss. The company’s revenue also experienced robust growth, with a YoY increase of 82.36% to reach Rs 2,190 crore.

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JP Power’s revenue was driven by strong performance in its power segment, which contributed Rs 1,530.53 crore, followed by the coal segment with Rs 235.37 crore and sands mining with Rs 659.87 crore. The company’s shares surged ahead of the earnings announcement, closing 4.96% higher at Rs 16.93 on the BSE.

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Regarding the Vishnuprayag Hydro Electric Plant (VHEP), JP Power highlighted that water availability typically decreases in the second half of the financial year, leading to a lower power generation during that period. The company explained that approximately 70-75% of the annual power generation occurs in the first two quarters, while the remaining 30-25% is generated in the last two quarters.

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JP Power also mentioned that it had provided a corporate guarantee (CG) of $150 million to the State Bank of India (SBI) on loans granted to Jaiprakash Associates Limited (JAL). However, the fair valuation of this guarantee as of December 31, 2023, has not been conducted according to the applicable Ind-AS. The company is currently in discussions with SBI regarding the release of this guarantee, and management believes that there will be no material impact on the financial results.

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The auditors have drawn attention to the fair valuation of the guarantee in their report on the financial results. However, the management believes that it is not necessary to provide for any potential impact on the financial results. JP Power remains confident in the positive outlook for the company.