JP Associates
Jaiprakash Associates disappointed the market with its Q2FY15 performance wherein it posted a net los of Rs.106 crore compared to a profit of Rs.68 crore in previous Q2 and much higher than Q1 loss of Rs.81 crore. Apart from the gargantuan interest outgo, the company’s topline for the quarter, total income fell 15% (YoY) at Rs.2691 crore. EBITDA was down 14% at Rs.785 crore but at least it was in the black! After that came the interest charges at Rs.793 crore and that pushed the company into the red. YoY, interest cost has risen 21% and eats away over 29% of the topline and operating expenses is at 80%. There was a tax write back of Rs.92 crore or else the net loss would have been at Rs.198 crore.
The group is sitting on a debt of around Rs.60,000 crore and it has been trying to bring this down through sale of assets. Finance cost is literally eating away the company and this loss goes on to show the kind of financial dire straits the company is in. What is extremely disheartening to note is that during its AGM on 27th Sept, instead of focusing all energies on bringing down the debt, the company talked about raising some Rs.40,000 crore more.