Men work on power transmission lines in Tezpur, India (Photographer: Adeel Halim/Bloomberg)  

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: