The operations during the current quarter have been impacted on account of, (i) Lower water availability due to extended winter in respect of hydro electric plants, namely Baspa-II, Vishnuprayag and Karcham Wangtoo, (ii) Karcham Wangtoo H.E.P. after one year of successful operation, coinciding with winter season was closed for routine inspection and regular maintenance from December 21, 2012 to February 07, 2013.(iii) Vishnuprayag HEP was closed due to maintenance work undertaken by UPPCL in a section of transmission line between Vishnuprayag and Muzaffarnagar from December 11, 2012 to January 22, 2013 and (iv) In respect of Bina TPP, the depreciation and interest are charged on 61% (approx.) of the cost, capitalised as per Accounting Standard issued by ICAI, whereas the revenue realised is based upon the provisional tariff order of MPERC for the first unit, of 250 MW, which allows 50% of the cost incurred.

• Sales was higher by 27% to Rs 374.43 crore on the back of incremental revenue from new generation capacity commissioned in the last 12 months. The 250 MW unit I of Bina power project at Madhya Pradesh generated a 466.92 GWH since its commissioning in Aug 31, 2012 compared to nil in the corresponding previous period.

• Operating margin crashed by 3930 bps to 43.7%. Bina power plant operated at a lower PLF of around 35% since its commissioning. This along with change in mix i.e. the thermal power revenue start contributing from Q3FY13 unlike complete hydel power contribution to topline in corresponding previous period seems have impacted the operating margin.

• Baring other expenses all cost heads have increased sharply in Q4FY13. While the operating exp was up by 200 bps to 3.5%, the cost of fuel was up by 2070 bps to 20.7%, the transmission charges was up by 1800 bps to 20.5% and the staff cost was up by 60 bps to 4.8%. But the other expenses was down by 200 bps to 6.7%.

• Hurt by sharp contraction in margin, the operating profit was down by 33% to Rs 163.70 crore. The other income was lower by 47% to Rs 10.52 crore, the interest cost was up by 21% to Rs 294.56 crore and the Depreciation was up by 18% to Rs 83.05 crore. Higher interest and depreciation cost is on account of charge of the same to P&L account with new generation project get commissioned. At PBT level it was a loss of Rs 203.39 crore compared to a loss of Rs 49.23 crore in the corresponding previous period.

• The taxation was a writeback/deffered tax credit of Rs 81.20 crore compared to Rs 41.21 crore in the corresponding previous period. Thus the loss at net level was Rs 122.26 crore compared to a loss of Rs 6.78 crore.

Jaypee Powergrid Ltd (JPL), a subsidiary of the Company commmissioned the transmission system from Wangtoo to Abdullapur w.e.f. April 01, 2012. Therefore, the long term open access (LTOA) charges in respect of Karcham Wangtoo HEP became payable by the Company from the said date. However, since LTOA got transferred to the Company from PTC India Ltd (PTC) only in January, 2013, LTOA charges including arrears became payable this quarter onwards. In the previous year LTOA charges were not payable as the transmission line of JPL was under construction.

Yearly performance

Standalone sales was up by 39% to Rs 2252.58 crore and with operating profit contract to 76.9% (compared to 90.1% in corresponding previous period) the growth at operating profit moderated to 19% to Rs 1733.09 crore. Hurt by lower other income, higher interest and depreciation the PBT was lower by 25% to Rs 349.11 crore. Eventually after accounting for taxation (including prior period tax), the net profit was lower by 18% to Rs 329.15 crore.

Consolidated sales was up by 52% to Rs 2458.63 crore but the growth at operating profit was up by 33% (to Rs 1932.65 crore) as OPM contract to 78.6% compared to 90.1% in FY12. The PBT was lower by 12% to Rs 407.76 crore after accounting for lower other income, higher interest and depreciation. After accounting for taxation (including prior period tax) the net profit was lower by 11% to Rs 357.65 crore. The minority interest was up at Rs 6.44 crore compared to Rs 0.29 crore in the corresponding previous period. Thus the net profit after MI was lower by 12% to Rs 351.21 crore.

Other developments

The Jaypee Bina Thermal Power Plant had commenced commercial operations of its Unit-2 of 250 MW on April 07, 2013. The Company now has operating Capacity of 1700 MW (Hydro) & 500 MW (Thermal) and under implementation generating capacity of 1320 MW (Thermal). Besides, the Company through its Subsidiary, Prayagraj Power Generation Company Ltd is implementing Bara Thermal Power Project with an aggregate capacity of 1980 MW. To meet the part of capital expenditure, the Company has raised resources by securitisation of receivables of Jaypee Baspa II HEP and Jaypee Vishnuprayag HEP and also other financial assistance resulting in additional interest cost.

The results under review are in respect of 300 MW Jaypee Baspa II H.E. Plant, 400 MW Jaypee Vishnuprayag H.E. Plant, 1000 MW Jaypee Karcham Wangtoo H.E. Plant and Unit 1 of 2 X 250 = 500 MW Jaypee Bina Thermal Power Plant. The Jaypee Bina Thermal Power Plant had commenced commercial operation of its first unit of 250 MW on August 31, 2012, therefore the results of the current quarter / year are not comparable with the figures of corresponding quarter / year of previous year. Previous year's / period's figures have been regrouped / reclassified wherever necessary.

The Company had commenced construction of Cement Grinding Unit at Jaypee Nigrie Super Thermal Power Plant, for gainful utilisation of dry fly ash as mandated by Ministry of Environment and Forests. Accordingly, the Company has two segments, Power Generation and Cement. As total assets employed in Cement Grinding Unit are less than 10% of the total assets of the Company, therefore, separate segment reporting is not applicable.

The Company successfully launched a Qualified Institutions Placement (QIP) issue of 31,32,45,961 equity shares of Rs. 10 each at an issue price of Rs. 30.33 per share, under the provisions of Chapter VIII of Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009, to Qualified Institutions Buyers ('QIBs'). The Company thus received an amount of Rs. 950.07 Crores (equivalent to US$ 175 Million). Incidentally, this QIP issuance was the largest QIP raised in the Power Sector in the recent past.

In respect of Hydro Power Projects, the water availability in the first half of the financial year is higher as compared to the second half. As such, the power generation in the first two quarters is about 70% of the annual power generation, while balance 30% is generated in third and fourth quarter.

Pursuant to Revised Schedule-VI of the Companies Act and Guidance Note issued by the Institute of Chartered Accountants of India requiring recognition of MAT credit in the Books of Accounts and the decision of the Company to opt for section 80 (IA) benefit under the Income Act, 1961 from a subsequent year in respect of Jaypee Karcham Hydro Electric Plant and Bina Thermal Power Plant, the Company has decided to recognize MAT Credit Entitlement and also Deferred Tax Liability (Net) in the Books of Account. As there is no taxable profit for the quarter/ financial year under review, no income tax has been provided for the quarter / year. Therefore, the MAT of Rs. 69.85 crore chargeable on book profits up to March 31, 2013 has been treated as MAT credit entitlement. Deferred tax liability of Rs. 101.09 crore was provided in the accounts for the period up to December 31, 2012. Since deferred tax liability for the year ended March 31, 2013 works out to be Rs 19.89 crore, an amount of Rs. 81.20 crore has been written back as deferred tax charge.

The scrip is hovering around Rs. 26.35.