• Overall power generation of the company was higher by 32% to 3786.59 million units. But excluding the power generation of Karcham Wangto (up 75% to 2152.24 million units) and Bina TPS (up by 51.24 million units against nil in Q2FY12), the aggregate generation of Baspa HEP and Vishnuprayag HEP was down by 3% to 1583.11 million units with the generation of Baspa down by 4% and that of Vishnuprayag down by 3%.
• Empirically power generation in April-September period will be stronger and that in October-March period will be weaker. This is largely as the water availability in second half of a fiscal will be lower compared to first half of a fiscal.

• The strong jump in generation of Karcham Wangto was also largely on account of incremental power capacity coming on stream during the last 12 months. The third and fourth unit of 4X250 MW Karcham Wangtoo HEP plant had commenced commercial operations on Sep 13, 2011. Hence the contribution of these two units is only for small part of Q2FY12 compared to full quarter in Q2FY13. Moreover Jaypee Bina TPS has commenced operation of first 250 MW unit in August 31, 2012. But for this incremental power capacity coming on stream the generation would have been muted.

• On an empirically strong quarter lower power generation is largely due to Northern regional grid failure on July 30, 2012 & July 31, 2012 and secondly on account of restriction imposed w.e.f Augurs 24, 2012 on approved overloads generation of BAspa II and Karcham Wangtoo by SLDC and NRLDC respectively. The poor climatic conditions also seemed to have played a role.

• Income from operation was higher by 40% to Rs 895.44 crore facilitated by higher power volumes aided by additional generation capacity coming on stream. Other operating income including VER was higher by 11% to Rs 10.35 crore taking total revenue up by 39% to Rs 905.79 crore.

• Operating margin stand contracted by 400 bps to 89.6% on the back of increased operating cost and lower volumes on account of new Bina TPS as well as two old HEP plants.

• The other income was lower by 66% to Rs 7.27 crore. The interest cost was up 31% to Rs 288.50 crore and the depreciation was up by 33% to Rs 77.43 crore. Thus the PBT was up by 29% to Rs 452.81 crore.

• Tax provision for the quarter was up 23% to Rs 86.78 crore. But the tax incidence was lower at 19% compared to 20% in the corresponding previous period. Thus at PAT level the growth was 30% to Rs 366.03 crore.

• Pursuant to Revised Schedule-Vl 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 80 (IA) benefit under the Income Act, 1961 from a subsequent year in respect of Jaypee Karcham Hydro Electric Plant, the Company has decided to recognize MAT Credit Entitlement and also Deferred Tax Liability (Net) in the Books of Account w.e.f. March 31, 2012. Therefore out of MAT of Rs 90.60 crore for the quarter, Rs 10.49 crore has been charged as income tax expense (on total taxable income for the quarter) and balance Rs 80.11 crore is MAT credit entitlement for the current quarter. Further deferred tax liability of Rs 76.29 crore has been provided for the quarter under review.
• The foreign exchange fluctuation on the outstanding Foreign Currency Loans has been accounted for as per Accounting Standard (AS 11) as amended vide Notification dated March 31, 2009 and revised Notification dated December 29, 2011, issued by Ministry of Corporate Affairs, Govt, of India and the same has been adjusted in the cost of Plant & Machinery.

Other developments

The company now has an aggregate operating Capacity of 1950 MW including 1700 MW of Hydro and 250 MW of thermal. Beside the company also has about 1570 MW of thermal power generation capacity under implementation. And through its subsidiary Prayagraj Power Generation Company it is implementing the 1980 MW Bara TPS power project. For these projects, the Company has raised resources by securitisation of receivables of Jaypee Baspa II HEP and Jaypee Vishnuprayag HEP and also other financial assistance.

Moreover the Jaypee Powergrid (a Subsidiary of the Company) has commenced commercial operations of the 400KV Quad Bundle Conductor Double Circuit Transmission Line from Pot-head-yard of Karcham Wangtoo HEP at Wangtoo, H.P. to Abduliapur, Haryana, measuring 217 Km, with effect from April 01, 2012 for the transmission of power generated by 1000MW Jaypee Karcham Wangtoo HEP.

UNFCCC has registered the 1000 MW Karcham Wangtoo HEP for the clean development mechanism (CDM) benefits resulting in 3.35 million CERs annually w.e.f. 12th April 2012.

Diluted Earnings per Share as on Sep 30, 2012, has been calculated on the basis of 2732292149 Equity Shares after including 107535026 shares which could be allotted to the Foreign Currency Convertible Bondholders assuming Bondholder exercise the conversion option of Bonds into Equity Shares.

The scrip is hovering around Rs 40.05.