The operational results during the current quarter have been impacted on account of (i) higher per unit realization for power sold on merchant basis during current quarter compared to corresponding previous period; (ii) Determination of final tariff by regulatory authority during current quarter in respect of Bina TPP causing finalization of tariff and realization of arrears; (iii) Lower generation of energy at Baspa, Vishnuprayag and Karcham Wangtoo HEPs in the current quarter compared to corresponding previous period due to lesser water availability; (iv) inclusion of interest cost in the operational expenditure to commissioning of first unit (660 MW) of Jaypee Nigries STPP and (V)Jaypee Powergrid, a subsidiary of the company has paid interim dividend of Rs 12.21 crore during the current quarter.

• Sales more than doubled (up 111%) to Rs 1040.91 crore with hydel power generation up by 30% and thermal power generation up by 208%. MPERC has approved the final tariff of Jaypee Bina Thermal Power Plant on 26th November, 2014. Accordingly, the Company has raised bill on the procurers in respect of arrears of Rs 114.24 crore and interest on arrears amounting to Rs 12.14 crore, which includes arrears of Rs 36.25 crore and interest on arrears of Rs 1.76 crore from April, 2014 to September, 2014. Accounting of this in sales seems have escalated the top-line.

• While the hydro power generation of Baspa and Karcham WAngtoo was lower by 15% and 11% the Vishnuprayag HPS which was under maintenance in corresponding previous quarter affected by floods in Uttarakhand has commenced operation and powered overall hydro generation of the company for the quarter. On the other hand benefiting out of new generation capacity coming on stream the thermal power generation was up by 208% for the quarter with the generation of Bina up by 41%. Unit I of Jaypee Nigrie STPP commenced operation from Sep 3, 2014.

• The 300 bps expansion in operating profit margin was largely to d with lower cost of operation, transmission, staff and other expenses. Cost of fuel as % to sales was up by 760 bps (to 30.1%) despite lower coal prices globally was due to incremental capacity coming on stream. The operation expenses was down by 130 bps (to 3.5%), transmission cost was down by 540 bps (to 3.7%), staff cost was down by 170 bps (to 2.1%) and other expenses was down by 220 bps (to 1.4%). As higher fuel cost is more than offset by other cost heads the OPM expanded handsomely.

• The other income was up by 31% to Rs 28.02 crore, the interest cost was up by 56% to Rs 561.06 crore and the Depreciation was up by 28% to Rs 137.78 crore. Higher interest and depreciation cost is on account of charge of the same to P&L account with new generation project get commissioned. Thus at PBT level it was a loss of Rs 55.36 crore compared to a loss of Rs 169.64 crore in the corresponding previous period.

• The taxation was a provision of Rs 34.85 crore compared to a write back of Rs 16.59 crore in the corresponding previous period. Thus at PAT level it was a loss of Rs 90.21 crore compared to a loss of Rs 153.05 crore in the corresponding previous period.

YTD Performance

Sales were higher by 35% to Rs 3029.34 crore but with 250 bps contraction in operating profit margin, the growth at operating profit moderated to 30% to Rs 2115.54 crore. Even as other income stands higher by 34%, dragged by higher interest cost, depreciation and taxation, the PAT was higher by 45% to Rs 278.75 crore.

Other developments

The BoD of the company in their meeting held on Nov 15, 2014 approved the scheme of arrangement for transfer of businesses in relation to two of the company's operating hydro electric plants namely, 300 mw Bina HEP and 1091 MW Karcham Wangtoo HEP to Himachal Baspa Power Company (HBPCL), a subsidiary company as a going concern on, slump exchange basis, subject to sanction of the said scheme by the Hon'ble High Court of Himachal Pradesh at Shimla and such other approvals as may be required. Further pursuant to the approval accorded by the Board of Directors in its meeting held on Nov 16, 2014 the company entered into the securities purchase agreement with JSW Energy (JSW) regarding sale of Securities of HBPCL to JSW, subject to satisfaction of conditions precedent including approval of the said scheme of arrangement as approved by the Board on Nov 15, 2014. The proposed divestment will help the company deleveraging its Balance Sheet including reduction of debt and interest outgo.

Pursuant to the Companies Act, 2013 becoming effective from 1st April, 2014, the Company has computed the depreciation based on the useful life of the assets as prescribed in Schedule II of the Act. This has resulted in reduction of depreciation of Rs 48.42 crore for the period ended 31st December, 2014. The carrying amount of assets which have completed its depreciated period as on 1st April, 2014 have been adjusted against 'Reserves & Surplus' net of deferred tax.

MAT, amounting to Rs 85.05 crore, for the period ended 31st December, 2014 is available as credit to be claimed in subsequent periods. Therefore, the same has been treated as MAT credit entitlement. Deferred tax liability of Rs 127.01 crore has been provided in the accounts for the current period.

The results under review are in respect of 300 MW Jaypee Baspa II H.E. Plant, 400 MW Jaypee Vishnuprayag H.E. Plant, 1091 MW Jaypee Karcham Wangtoo H.E. Plant, 500 MW Jaypee Bina Thermal Power Plant and Unit 1 (660 MW) of 1320 MW Jaypee Nigrie Super Thermal Power Project which commenced operations from 3rd September, 2014. Hence the figures of the current quarter /period are not comparable with figures of the corresponding quarter /period in the previous year. Previous quarter/ period figures have been regrouped / reclassified wherever necessary. The Company today has operating capacity of 1791 MW (Hydro) and 1160 MW (Thermal).

The scrip is hovering around Rs 11.29.