Sajjan Jindal-led JSW Energy today reported a consolidated net loss of Rs 483.07 crore for the quarter ended March 31, mainly due to provisioning of Rs 418 crore related to a loan.
The company had reported a consolidated net profit of Rs 23.72 crore in the year-ago period.
The said loan was advanced for acquisition of a power plant of Jaiprakash Power Ventures Ltd (JPVL). The deal was however terminated, JSW Energy said in a statement.
"The measurement of the loss allowance reckons with the financial ability of the party and setoffs available for certain amounts payable to the same party towards an earlier acquisition," it said.
The company said it has also recorded gross and net provision of Rs 574 crore and Rs 418 crore, respectively in the quarter against outstanding JPVL advance of Rs 752 crore (against original amount of Rs 1,000 crore) considering JPVL's continued financial challenges.
JSW Energy is evaluating all options, including legal recourse under Insolvency and Bankruptcy Code (IBC), to recover its dues from JPVL, it said.
In January this year, JSW Energy had announced termination of its deal with JPVL to acquire 500 MW Bina thermal power plant after lapse of time for completion of the transaction.
Total income during the quarter declined to Rs 1,879.01 crore from Rs 1,935.19 crore in the year-ago period. The fuel cost for the quarter increased 11 per cent year-on-year to Rs 1,111 crore, primarily due to increase in international prices of coal.
However, the company reported a consolidated net profit of Rs 77.97 crore in 2017-18 compared to Rs 629.03 crore in 2016-17.
The company said the group has plans of resuming construction/ developmental activities of a hydropower project in Himachal Pradesh after hydropower policy 2018-28 is announced.
It said its solar power initiatives are progressing well. Projects of 17MW are on track for completion by September 2018.
To further enhance its presence in this segment, the company proposes to set up a facility to manufacture solar PV panels with a capacity of 1,000 MW in 2018-19.
This would be located at Vijayanagar, Karnataka.
JSW Energy is also exploring entering the PV cell / wafer manufacturing space.
It said the scope of EV (electric Vehicle) business has been widened to include select electric commercial vehicle (CV) models including electric bus & light pick-up trucks.
As a result, proposed capital expenditure has increased to Rs 6,500 crore over the period of next 3-4 years in the EV and associated businesses of storage battery and charging infrastructure.
Considering the company's growth plans, the board has decided not to declare any dividend for 2017-18, it said.
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