Jaiprakash Power Ventures (JPVL) is expected to report a loss of Rs 92 crore during October-December quarter against loss of Rs 153 crore in the year-ago period.
Total income is seen rising 66.9 percent to Rs 822 crore in December quarter from Rs 492 crore in the year-ago period. Operating profit may climb 78.5 percent year-on-year to Rs 494 crore and margin may expand 390 basis points to 60 percent in the quarter gone by.
Analysts expect JP Power to report seasonally weak results, but the losses may narrow down compared to Q3FY14 as Bina plant has now stabilized while Nigrie may also contribute to earnings.
Bina plant load factor (PLF) improved significantly to 66 percent in the quarter against 54 percent in Q2FY15, (plant availability factor at Bina is seen at around 98 percent). So the losses at Bina may come down or Bina may be marginally profitable.
Full effect of the commissioning of the first unit of Nigrie plant will be visible in Q3. So depreciation and interest costs may be higher. If the benefits of past recovery (around Rs 140 crore) for Bina are reported, then third quarter's bottomline could even be a profit.
Key factors to watch out for in Q3 are near term cash flow management, outcome of coal auctions, deal conclusion with JSW Energy and future plant sale.
The big announcement during the quarter was that JSW Energy signed a binding MoU with JP Power for 3 plants worth 1,891 MW of capacity (i.e. Hydro-Electric units of Baspa II, Kharcham Wangtoo ++ 1 Thermal Power Unit of Bina).
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