The Sajjan Jindal-led JSW Energy today reported a consolidated net loss of Rs 483.07 crore for the quarter to March, 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.
However, for the full year to March, it has reported a consolidated net profit of Rs 77.97 crore, still massively down from Rs 629.03 crore in FY17.
Income from operations for the quarter also declined to Rs 1,775.08 crore from Rs 1,862.08 crore.
"During the quarter, we recorded gross and net provision of Rs 574 crore and Rs 418 crore, respectively against outstanding Jaiprakash Power Ventures advance of Rs 752 crore (against original amount of Rs 1,000 crore) considering that company's continued financial challenges," JSW Energy joint MD & CEO Prashant Jain told reporters here.
The loan was advanced for acquisition of a 500 mw Bina thermal power plant of JPVL. However, the deal was terminated following the lapse of time for completion of the transaction.
"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," he said.
Jain further said the company is evaluating all options, including legal recourse under IBC, to recover its dues from JPVL.
Total income during the quarter declined to Rs 1,879.01 crore from Rs 1,935.19 crore.
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.
During the year, the company managed to reduce its debt by Rs 3,106 crore bringing down net debt to Rs 11,278 crore as of March.
He further said the company has proactively taken provisions in the standalone business related to its investments in Toshiba JSW JV and its South African operations aggregating to Rs 241 crore after undertaking appropriate valuation exercises for both businesses.
The company also plans to resume construction/ developmental activities of a hydropower project in Himachal after hydropower policy 2018-28 is announced.
"Our solar power initiatives are progressing well and projects of 17 mw are on track for completion by September 2018. We want to increase the total solar capacity to 200 mw which will include a mix of rooftop, ground mounted installations and floating solar projects," he said.
To further enhance its presence in this segment, the company is also planning to set up a facility to manufacture solar PV panels with a capacity of 1,000 mw in 2018-19, which would be located at Vijayanagar in Karnataka.
"We are also exploring entering the PV cell/wafer manufacturing space," Jain added.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)