Jaiprakash Power
Today, Jaiprakash Power Ventures (JP Power) is amongst the top losers on the BSE. The stock has tumbled down after it posted a set of dismal numbers for Q3FY13. Though YoY its revenue rose 8% at Rs.427 crore, the rest all has been downhill. EBIDTA was down 25% at Rs.268 crore and its net loss widened from Rs.60 crore to Rs.98 crore. Operating margins have slumped sharply from 90% to 62.7%. What really did the company in were the high operating expenses and interest outgo. Cost of fuel, on a YoY rise by a whopping 100% and overall operating costs were up 143%.
The company’s interest outgo for the quarter stood at Rs.287 crore and for 9MFY13, it was at Rs.804 crore. Its debt stands at a gargantuan Rs.13,650 crore and that is a huge overhang. But the good news is that its Bina Unit-1 was commissioned in Aug’2012 of 250 Mw. It now has an operating capacity of 1700 MW of Hydro and 250 Mw of thermal. Another 1570 MW is under implementation and its another subsidiary is implementing another thermal project of 1980 MW capacity. Hydro power capacity in second half will seasonally go down and first half produces 70% of total power and only 30% power is generated form hydro in H2. Though there is no immediate trigger for the stock, the UP Govt has initiated land acquisition process for 1320MW Karchana coal based power project. Keep an eye out as its NCD ayment of Rs.1450 crore is scheduled for 13th Feb and there is still no clarity about its fund raising plans for another Rs.2000 crore.