JP Associates
Jaiprakash Associates, for Q1FY14 had a PBT at Rs.37 crore, a YoY fall of 82%, down 79% (QoQ). But on 29th May 2013, the company sold 16 crore shares of its subsidiary- Jaypee Infra at Rs.35 per share. The company earned a profit of Rs.395 crore on sale of these shares and this alone changed the picture. PAT came in at Rs.334 crore, up by a whopping 140% (YoY). The rise in net sales was muted at 10% (YoY), coming in at Rs.3283 crore.
Interest cost continues to remain high – it came in at Rs.590 crore in current Q1, up 27% (YoY) and up 7%. Interest outgo eats away 18% of the net revenue. The company has a debt of Rs 54,000 crore and has set itself a target of bringing it down by Rs.5000 crore in current fiscal. In terms of segment performance, construction EBIT fell 16%, Cement and cement products fell 24%, power rose 40% and did better even sequentially, considering a loss in Q4. Hotel/hospitality and golf course EBIT was flat YoY but QoQ, it fell 95%. Realty EBIT rose 128% (YoY) but down 25% (QoQ). The market is obviously disappointed and with no major trigger expected immediately, the stock remains in the red. With the company postponing the stake sale in its cement unit to bring down debt remains an overhang too.