JP Power Reports Strong Q3 Results with Increased Profit and Sales

JP Power, a leading power generation company, has announced its financial results for the third quarter of the fiscal year. The company reported a net profit of Rs 172.85 crore, marking a significant increase compared to the previous quarter. This positive result follows a loss of Rs 217.97 crore in the same quarter last year.

The company’s revenue for the quarter also witnessed substantial growth, with an 82.36% increase to reach Rs 2,190 crore. The power segment revenue stood at Rs 1,530.53 crore, while the coal and sands mining segments reported revenues of Rs 235.37 crore and Rs 659.87 crore, respectively.

JP Power’s stock price showed a positive response ahead of the earnings announcement, as it climbed 4.96% to close at Rs 16.93 on the Bombay Stock Exchange (BSE).

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

JP Power disclosed that it had provided a corporate guarantee (CG) of $150 million to the State Bank of India (SBI) against loans granted to Jaiprakash Associates Limited (JAL). However, the fair valuation of this guarantee as of December 31, 2023, has not been conducted as per the applicable Ind-AS guidelines.

The company has initiated discussions with SBI for the release of the guarantee and considers no material impact on its financial results from the fair valuation. However, the auditors have drawn attention to this in their report on the financial results.