Shares of Jaiprakash Power Ventures fell as much as 10 percent in early trade on Monday after the disappointing numbers in the third quarter of current financial year 2012-13.
Shares of Jaiprakash Power Ventures fell as much as 10 percent in early trade on Monday after the disappointing numbers in the third quarter of current financial year 2012-13. The company has reported a loss of Rs 98 crore in the quarter due to less water availability and problems at Bina plant. (it had reported a profit after tax of Rs 60 crore in the third quarter of previous financial year 2011-12)
Revenues were up by 8 percent year-on-year to Rs 427 crore in the October-December quarter of 2012.
Earnings before interest, tax, depreciation and amortisation (EBITDA) dropped by 25 percent YoY to Rs 268 crore and operating profit margin slipped 2,730 basis points to 62.7 percent versus 90 percent during the same period.
Results were not comparable year-on-year because the company has started commercial operations of its first unit of 250 MW in September 2012.
Water availability was low for all three of its key projects namely Baspa-II, Vishnuprayag and Kharcham Wangtoo. Meanwhile, the company has suffered from teething problems at its Bina plant, which was expected to result in a loss (Analysts had expected approximately loss of Rs 90 crore).
But the loss is not a surprise as this is a seasonally weak quarter for the company. Water availability in first half of financial year is higher and consequently, power generation in first half is about 70 percent of annual power generation while the balance 30 percent of power generation happens in Q3 and Q4.
The board of directors have approved raising of up to Rs 3,500 crore.
At 09:30 hours IST, the stock declined 5 percent to Rs 38.30 on Bombay Stock Exchange.
Jaiprakash Pow stock price
On December 19, 2014, Jaiprakash Power Ventures closed at Rs 11.74, down Rs 0.27, or 2.25 percent. The 52-week high of the share was Rs 26.63 and the 52-week low was Rs 11.17.
The company's trailing 12-month (TTM) EPS was at Rs 0.15 per share as per the quarter ended September 2014. The stock's price-to-earnings (P/E) ratio was 78.27. The latest book value of the company is Rs 21.54 per share. At current value, the price-to-book value of the company is 0.55.
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