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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 4224.53 | ACUITE BBB+ | Reaffirmed | Rating Watch with Negative Implications | - |
| Bank Loan Ratings | 1375.47 | Not Applicable | Withdrawn | - |
| Total Outstanding | 4224.53 | - | - |
| Total Withdrawn | 1375.47 | - | - |
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Rating Rationale |
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Acuité has reaffirmed the long-term ratings to 'ACUITE BBB+' (read as ACUITE triple B plus) on the Rs. 4224.53 Cr. bank facilities of Jaiprakash Power Ventures Limited (JPVL). The ratings have been placed under 'Rating watch with Negative Implications’.
Acuité has withdrawn its long-term rating on the bank loan facilities of Rs. 1375.47 Cr. of Jaiprakash Power Ventures Limited (JPVL) without assigning any rating as it is a proposed facility. The rating is being withdrawn on account of the request received from the company and in accordance with Acuité's policy on withdrawal of ratings as applicable to the respective facility / instrument. Rationale for rating The outstanding ratings have been continued under watch with negative implications in view of SEBI's Adjudication order dated 27th December 2024 imposing penalty on Jaiprakash Power Ventures Limited and top officials of the company on the account of non-compliances of certain Accounting Standards w.r.t. disclosures, approval of shareholders, non-provisions against the corporate guarantee provided, etc. from the financial years from 2012-13 to 2021-22. In which SEBI believes that the misrepresentation of financial statements or not reflecting the true and fair view of its financial position may be detrimental to the interest of investors or the securities markets. The company has filed appeal on SAT (Securities Appellate Tribunal) which was heard on 6th March 2025 and has been admitted. As per the SAT's order, issued directions to the company to deposit 50% of the penalty and same shall be subject to outcome of this appeal. Acuite will closely monitor the developments and outcome of this appeal will remain key monitorable. The reaffirmation in ratings takes into account the healthy financial risk profile and strong liquidity profile of the company. The rating continues to derive strength from the presence of an off-take agreement for the entire capacity of the Vishnuprayag hydro-electric project (VHEP), the availability of coal covering the fuel requirements through captive mines, as well as fuel supply agreements (FSA) and linkages. Furthermore, the company was selected as the preferred bidder for Bandha North Coal Mine, and the geological extraction reserve is estimated to be 200 Million Metric Tonnes (MMT). The coal mine is expected to take another 3-4 years to develop for commercial use. However, the scale of operations has declined by ~23% in FY 2025 against FY 2024, mainly due to shut down of both thermal power plants (Bina & Nigrie) for annual maintenance for a particular time period in the year which leads to lower PLF (Plant load factor). The timely commissioning of the Bandha North Coal Mine will continue to remain a key monitorable factor, The rating is further constrained by disputed receivables and limited long-term PPA tie-ups for both Jaypee Nigrie Supercritical Thermal Power Plant (JNSTPP) and Bina Thermal Power Plant (BTPP). |
| About the Company |
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JPVL was incorporated in 1994 as a part of the "Jaypee Group" and is promoted by Jaiprakash Associates Limited (JAL). It has been listed on the NSE and BSE since 2005. The company is engaged in the generation of power through a 400 MW hydropower project, Vishnuprayag in Uttarakhand, and two thermal power projects located in Madhya Pradesh, viz., the 1,320 MW Nigrie thermal power plant and the 500 MW Bina thermal power plant. Further, JPVL has a coal mine at Amelia, Madhya Pradesh, and a cement grinding unit adjacent to its Nigrie power plant. Jaypee Group is a diversified business conglomerate with varied business interests in sectors such as infrastructure, real estate, cement, power, and healthcare.
The directors are Mr. Dinesh Kumar Likhi, Mr. Pritesh Vinay, Mr. Manoj Gaur, Mr. Suren Jain, Mr. Praveen Kumar Singh, Mr. Sunil Kumar Sharma, Mr. Binata Sengupta, Mr. Anupam Lal Das, Mr. Vandana Rakesh Singh, Mr. Sudhir Mital, Mr. Rama Raman and Ms. Sonam Bodh (IDBI Nominee). |
| Unsupported Rating |
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Not Applicable
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| Analytical Approach |
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Acuite has considered standalone financial and business risk profile of Jaiprakash Power Ventures Limited.
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| Key Rating Drivers |
| Strengths |
| Established track record of operations
The company was incorporated in 1994, reflecting an established track record of operations for more than two decades, and forms part of Jaypee Group. JPVL operates a 400 MW hydropower project, Vishnuprayag, in Uttarakhand and two thermal power projects located in Madhya Pradesh, viz., the 1,320 MW Nigrie thermal power plant and the 500 MW Bina thermal power plant. All the plants are fully operational, and the required approvals and agreements are in place, leading to zero project execution risk. The operational performance of the company, however, remained moderate, marked by an average PLF of 63 percent and a PAF of 90 percent combining all three power plants. Vishnuprayag HEP has an off-take agreement for its entire capacity. However, Nigrie STPP & BTPP has PPAs for 37.50 & & 70 % of its capacity, and it sells a significant amount of its generated power by way of medium-term PPAs. Acuite believes that the company would continue to benefit from the established track record of operations and experience of the management over the medium term. Financial risk profile The capital structure as represented by debt equity remained improved over the years marked by 0.31 times as on March 31, 2025, compared against 0.38 times as on March 31, 2024. The improvement is majorly backed by decline in total debt of the company and accretion of profits in reserves. The tangible net worth of the company remained at Rs. 12,092.34 Cr. as on 31 March 2024 against Rs. 11,286.89 Cr. for the last year. The debt profile of the company comprises of term loan, unsecured loans and working capital borrowings. Further, the company has also reported interest coverage ratio of 5.07 times during FY25 and Debt Service Coverage Ratio of 2.74 times for FY24. The debt to EBITDA of the company remained at moderate levels of 1.79 times for FY25. The total outstanding liability to tangible net worth stood at 0.45 times during FY25. The ROCE of the company 10.17% in FY 25 against 8.78% in FY 23. Acuite believes that financial risk profile of the company remain to the comfortable in the medium term with the steady accruals. Low fuel supply risk JPVL has a captive coal mine in Amelia (North), Madhya Pradesh, which the company has won by way of reverse bidding. Out of the total fuel requirement of 5.90 MTPA for Nigrie TPP, the mine caters to the fuel requirement to the extent of its annual drawing capacity, i.e., 3.92 MTPA, and the balance of the fuel requirement is met through e-auctions from the open market. Furthermore, the company was selected as the preferred bidder for Bandha North Coal Mine, and the geological extraction reserve is estimated to be 200 MMT. The coal mine is expected to take another 3–4 years to develop for commercial use. Acuité believes that with the use of coal from Bandha North Coal and Amelia mines and with existing fuel supply agreements, all the plants of the company will run at an optimum load factor. |
| Weaknesses |
| Decline in scale of operations & Profitability
The company has reported total operating income of Rs. 5,462.19 Cr. during FY2025 as against Rs. 6,777.95 Cr. in FY2024 thereby reducing the topline by ~23%. The decline in revenues is mainly due to lower power generation in Bina & Nigrie power plants. Both the plants were shut down for particular time period in the year which leads to lower PLFs (Plant Load factor). Also, the merchant prices for sale of power in the open market has also declined in FY 2025. The revenue segment of the company majorly comprises of sale of power, followed by sale of coal and sand mining activities. Significantly, the operational profit EBIDTA has declined from Rs. 2252.21 Cr. in FY 2024 to Rs. 1,854.78 Cr. in FY 2025 mainly due to higher O&M expenses as per the management. However, Profit After Tax (PAT) improved from Rs. 686.10 Cr. in FY 2024 to Rs. 813.55 Cr. in FY25. Acuite believes the fluctuations in scale of operations in near to medium term will remain key monitorable. Counterparty risk with disputed receivables The company is dealing with state companies, UPPCL and MPPMCL, which exposes it to high counterparty risk. The invoice raised on MPPMCL in pandemic for capacity charges has been disputed as a notice of invoking the force majeure clause by MPPMCL. Another Rs. 324 Cr. is held up against the recovery of tax. however, management is confident that it will their favour. Such counterparty risk exposes the company to erosion of capital in case any unforeseen write-offs. However, the debtor days improved from 74 days as of March 31, 2023 to 64 days in FY24. The total outstanding debtors as of March 31, 2024, remained at Rs. 1186.39 crore as on March 31, 2024. Extended Support given to Promoter Entity The corporate guarantees extended by the company to its group/sponsor company, i.e., Jaiprakash Associates Limited (JAL), for USD 1500 Lakhs was to be released as the framework agreement signed between JPVL and its lenders in April 2019, the same has not yet been released. Any crystallization of the said corporate guarantee might impact the liquidity profile of JPVL and hence remains the key rating sensitivity. |
| ESG Factors Relevant for Rating |
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The company is dedicated to aligning operations with sustainability and responsible stewardship. They are implementing robust ESG risk management frameworks, regularly assessing our environmental and social impact, and promoting transparency. Additionally, the company collaborates with industry partners, policymakers, and communities to drive positive change and find innovative solutions.
By recognizing the importance of ESG in the power sector, company is expected to invest in resources, research and development, and employee empowerment to strengthen our capabilities. By addressing ESG risks, they are safeguarding the future and fulfilling their responsibility to the planet and communities. Together it is committed to sustainable practices, responsible growth, and a brighter future for generations to come. |
| Rating Sensitivities |
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| Liquidity Position |
| Strong |
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The liquidity profile of the company is strong as net cash accruals of Rs. 1,283.75 Cr. in FY 25 against current debt obligations of Rs. 205.05 Cr. during the same period. The company has also maintained cash and bank balance of Rs. 892.27 Cr. as on March 31, 2025. The current ratio of the company is 2.10 times as on 31st March 2024. Acuite believes that the liquidity of JPVL will maintain over medium term indicating buffer for any future endeavours.
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| Outlook: Not Applicable |
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| Other Factors affecting Rating |
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None
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| Particulars | Unit | FY 25 (Actual) | FY 24 (Actual) |
| Operating Income | Rs. Cr. | 5462.19 | 6777.95 |
| PAT | Rs. Cr. | 813.55 | 686.10 |
| PAT Margin | (%) | 14.89 | 10.12 |
| Total Debt/Tangible Net Worth | Times | 0.31 | 0.38 |
| PBDIT/Interest | Times | 5.07 | 4.07 |
| Status of non-cooperation with previous CRA (if applicable) |
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Not Applicable
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| Interaction with Audit Committee anytime in the last 12 months (applicable for rated-listed / proposed to be listed debt securities being reviewed by Acuite) |
| Not applicable |
| Any other information |
| Acuite has received latest NDS (No Default Statement) till March 2025. |
| Applicable Criteria |
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• Default Recognition :- https://www.acuite.in/view-rating-criteria-52.htm • Infrastructure Sector: https://www.acuite.in/view-rating-criteria-51.htm • Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm |
| Note on complexity levels of the rated instrument |
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