Jaiprakash Power Ventures (JPVL), a large private sector hydropower company reported a 52% increase in sales to Rs 181 crore, in the December 2010 quarter. Its sales slipped 36% sequentially, which should be seen in the light of the business being a seasonal one.
JPVL’s net profit is 35% up at Rs 23 crore, compared to the December 2009 quarter and one-fourth the previous quarter’s level.
Its profits have risen at a slower pace, compared to sales. The company is setting up projects, by itself, and through its subsidiaries and associates, which will add 13,020 megawatt of additional generation capacity. About 60% will be thermal and the rest hydro power. Raising of resources for funding these projects has resulted in a higher interest cost. Its interest has nearly doubled to Rs 104 crore.
The net profit margin at 13% is almost the same as last year’s margin of 14%. However, it is down from the 30% the previous quarter. NTPC has a similar net profit margin of 14%, though its revenues are much higher. The rate of minimum alternate tax went up to 18% in last year’s budget, from 15% earlier, which has also affected its post-tax profits.
The Group is targeting to be a 13,470 MW power producer by 2019. The recent power projects on which JVPL is working on are the 1000 MW Karcham Wangtoo hydroelectric power project (first unit to start production in March 2011). Another subsidiary has executed the Boiler Turbine & Generator contract for three units of 660 mw each.
The results declared now are standalone results, and the combined performance of the company and its subsidiaries will be visible only when it declares its consolidated results.
The share price of the company at Rs 50.4 is a little lower than the weekly high of Rs 53.
See the financial table accompanying the results on the company website.