The operational results during the current quarter have been impacted on account of (i) lower generation of energy at Baspa, Vishnuprayag and Karcham Wangotto HEP in Q1FY15 compared to corresponding previous period on account of hydrology; (ii) The current revenue at 500 MW Jaypee Bina Thermal Power Plant is on account of provisional tariff, pending final tariff determination (iii) Higher interest on corporate loans facilities to fund ongoing projects in the absence of company's ability to raise equity due to market conditions prevailing in the recent past.

• The sales (excluding other operating income) were flat at Rs 786.02 crore. The generation of VishnuPrayag HPS was up by 13% on weak base, as the generation of its impacted by Uttarakhand floods w.e.f from June 16, 2013. But the generation of other two generation plants i.e. Baspa HEP and Karcham Wangtoo was lower by 12% and 19% respectively. But facilitated by 163% jump in generation of Bina TPS the overall generation for the quarter was up by 4.1%.

• Change in revenue mix with increased contribution from thermal generation, the operating profit margin contracted sharply. The 410 bps contraction in OPM can be explained by higher fuel cost, operating expenses and staff cost. As proportion to sales the operation expenses was higher by 30 bps to 2.3%, the cost of fuel was up 490 bps to 16.4% and the staff cost was up by 30 bps to 2.4%. However the transmission charges were lower by 110 bps to 6.5%, the other expenses was down by 20 bps to 2.4%.

• The other income was up by 133% to Rs 11.14 crore, the interest cost was up by 11% to Rs 389.98 crore and the Depreciation was down by 16% to Rs 90.49 crore. The depreciation was lower by 20.79 crore for Q1FY15 as the company has computed depreciation based on useful life of the assets as per new Companies Act. Thus at PBT (before EO) level the fall is 35% to Rs 86.82 crore.

• EO expense was Rs 0.08 crore compared to nil in the corresponding previous period. Thus the PBT (after EO) was down by 35% to Rs 86.74 crore. The taxation was down by 57% to Rs 17.59 crore. Taxation for the period is deferred tax of Rs 17.59 crore as the company claimed MAT credit of Rs 18.18 crore for Q1FY15. Thus the fall at PAT level moderated to 26% to Rs 69.15 crore.

YTD Performance

Standalone sales were higher by 19% to Rs 2677.50 crore and the operating profit was higher by 6% to Rs 1832.36 crore. Even as other income stand higher by 65%, dragged by higher interest and depreciation and taxation, the PAT was lower by 94% to Rs 19.73 crore.

Consolidated sale were higher by 17% to Rs 2874.39 crore and with 820 bps contraction in operating margin the growth at operating profit was limited to 5% to Rs 2022.38 crore. Eventually the net profit (after minority interest) was lower by 91% to Rs 32.86 crore.

Other developments

Subsequent to its deal with TAQA fell through, the Jaiprakash Power Ventures has inked an MoU with Reliance Power to sell all its hydro power assets to the latter.

Earlier TAQA which reviewed all its investment globally has decided to pullout from the contract to buy 2 power plants from JP Power ventures. Since the break away is unilateral on the part of TAQA the JP Ventures will get damages as per the contract terms.

The stock hovers around Rs 17.20.