The operational results during the current quarter have been impacted on account of (i) inclusion of interest cost in the operational exenditure due to commissioning of 250 MW Unit II of Jaypee Bina Thermal Power Plant in April 2013 (ii) The current revenue at 500 MW Jaypee Bina Thermal Power Plant is on account of provisional tariff, pending final tariff determination (iii) Lower realisation in respect of 1000 MW Jaypee Karcham Wangtoo H.E. Plant due to prevailing market conditions and (iv) Long Term Open Access (LTOA) charges in respect of 1000 MW Jaypee Karcham Wangtoo H.E. Plant have been paid in current quarter. 

• Sales (excluding other operating income) were higher by 8% to Rs 968.48 crore. Though there is no generation from Vishnuprayag, which was not operational on account of Uttarakhand floods w.e.f from June 16, 2013 and 1% lower generation from Baspa HPS, helped by 4% rise in generation of Karcham Wangtoo and 645% rise in generation of Bina TPS the fall in overall generation was limited to 15% to 3191.37 million units. The sharp jump in generation of Bina TPS was largely on account of commissioning of 250 MW second unit of the project in April 2013. 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.

• Operating margin crashed by 1110 bps to 78.5% with change in power generation mix. The contribution of thermal power generation in Q2FY14 was at 10% of total generation of the company compared to mere 1% in the corresponding previous period. Moreover, Bina power plant operated at a lower PLF of around 25% in H1FY14 adding to the woes.

• Baring operational expenses and other expenses all cost heads have increased sharply in Q2FY14. As % to sales, the operating exp was down by 20 bps to 1.8% and that of other expenses was down by 40 bps to 1.6%. On the other hand the cost of fuel was up by 860 bps to 9.6%, the transmission charges was up by 240 bps to 6.3%, staff cost was up 60 bps to 2.2%. Hit thus the operating profit was lower by 6% to Rs 760.99 crore despite higher sales.

• The other income was up by 2% to Rs 7.41 crore, the interest cost was up by 24% to Rs 357.36 crore and the Depreciation was up by 39% to Rs 107.46 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 the PBT was down by 33% to Rs 303.58 crore.

• The taxation was lower by 40% to Rs 51.69 crore. Thus the PAT was down by 31% to Rs 251.89 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 from Q4FY13 onwards. In FY12 LTOA charges were not payable as the transmission line of JPL was under construction.

Other developments

The Company today has operating capacity of 1700 MW (Hydro) and 500 MW (Thermal).

The performance of 1000 MW Jaypee Karcham Wangtoo H.E. Plant and 300 MW Jaypee Baspa II H.E. Plant had been satisfactory during the quarter under review. Due to natural calamity in Uttarakhand, generation for 400 MW Jaypee Vishnuprayag H.E. Plant is temporarily affected w.e.f. June 16, 2013. Generation of power is suspended due to water flow and debris at Barrage. Restoration and associated works including clearing of debris is scheduled to be completed by March 2014. Vishnuprayag H.E.Plant has adequate Insurance policy including all risks with ALOP provisions, further, commercial aspects of this Force Majeure event shall be addressed in accordance with Power Purchase Agreement with Uttar Pradesh Power Corporation Limited (UPPCL).

Diluted Earnings per Share as on Sep 30, 2013, has been calculated on the basis of 304,55,38,110 Equity Shares after including 10,75,35,026 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 17.60.