JSW Energy Plans Legal Recourse To Recover Dues From Jaiprakash Power
JSW Energy Ltd. is planning to take legal recourse for recovering dues from Jaiprakash Power Ventures Ltd. after a deal to acquire the struggling company's power plant didn’t materialise, Joint Managing Director and Chief Executive Officer Prashant Jain said.
The one-time loss reported by JSW Energy Ltd. in the January-March quarter was due to provision made for the acquisition of a power plant of Jaiprakash Power Ventures Ltd. in Bina, Madhya Pradesh, which did not go through, he told BloombergQuint in a post-earnings interaction.
The company has made a provision of Rs 574 crore against the Rs 752 crore outstanding as part of a deal to acquire JPVL’s Bina power assets.
JSW Energy is now evaluating all legal options to recover dues, and will be deciding in due course of time.Prashant Jain, Joint MD & CEO, JSW Energy
On insolvency and bankruptcy proceedings, he said the company will be looking at assets as and when admitted to the National Company Law Tribunal, and will evaluate on a case by case basis, he added. On new acquisitions, the company will remain interested but will be in a wait and watch mode for now, Jain added.
Q4 Earnings Highlights
- Net loss of Rs 483 crore as against profit of Rs 23.7 crore in the year-ago period.
- Revenue down 4.7 percent at Rs 1,775 crore from Rs 1,862.1 crore in the year-ago period.
- Earnings before interest, tax, depreciation and amortisation down 28.2 percent at Rs 421.4 crore as against Rs 587 crore in January-March 2017.
- Ebitda margin at 23.7 percent compared to 31.5 percent.
Watch the full interaction here: