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. Read More
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