Mumbai: Jaiprakash Power Ventures Ltd on Friday said its board has approved divestment of its entire shareholding in subsidiary Sangam Power Generation Co. Ltd (SPGCL) to the Uttar Pradesh government.
“In view of non-implementation of 2x660 MW Karchana thermal power project in Allahabad district by the company’s subsidiary, Sangam Power Generation Co Ltd for reasons beyond its control, the said project is proposed to be transferred to the government of Uttar Pradesh through Uttar Pradesh Rajya Vidyut Utpadan Nigam Ltd/ Uttar Pradesh Power Corporation Ltd by way of sale of shares of SPGCL,” Jaiprakash Power said in a BSE filing on Friday.
The company, a part of debt-laden infrastructure conglomerate Jaypee Group, said it is in discussions with certain holders of outstanding foreign currency convertible bonds (FCCBs) aggregating $101.42 million for “suitable restructuring”, the company said in the filing.
Jaiprakash Power said the results during the quarter were hurt by various factors, including non-availability of long-term power purchase agreements (PPAs) and non-availability of transmission corridor for power tied up on short-term basis for its Jaypee Nigrie super thermal power plant.
The company reported a higher-than-expected standalone net loss of Rs161.67 crore in the second quarter compared with net profit of Rs.168.82 crore a year earlier.
Net sales in the quarter fell about 39% to about Rs751 crore from Rs1,227.84 crore a year earlier. Revenue in its largest power business fell about 36% to Rs.671.02 crore in the second quarter, while revenue in coal business rose 53.7% to Rs.91.03 crore.
One analyst had expected Jaiprakash Power to report standalone loss of Rs.147.9 crore on sales of Rs.776.6 crore, according to Bloomberg’s estimates.
Another group company Jaypee Infratech Ltd on Friday reported its fifth straight quarterly loss, hurt by a continued slowdown in its real estate business.
Standalone net loss for the second quarter ended 30 September, however, narrowed, sending company’s shares up by as much as 7.8% in late afternoon trading.
Net loss narrowed to Rs.131.77 crore from net loss of Rs.169.14 crore in the year-ago period, helped by lower expenses and lower finance costs. The company had reported a loss in the previous four quarters as well.
Standalone net sales fell about 45% to Rs.186.67 crore from Rs.337.77 crore a year earlier. Total expenses fell 46.2% to Rs.185.77 crore while finance costs fell 20.8% to Rs.187.65 crore in the quarter.
Jaypee Infratech has developed the 165-km-long six-lane Yamuna Expressway, connecting Noida and Agra. As part of its real estate segment, the company has the right to develop 6,175 acres of land along the Yamuna Expressway.