• Standalone sales were lower by 21% to Rs 2392.75 crore as both cement and construction report lower sales. Segment revenue of cement division was down by 13% (to Rs 1460.01 crore or 61% of sales) and that of construction was down by sharp 47% (to Rs 640.20 crore or 27% of sales). While depleting order book as well as delays in burnout of order in hand is the reason for lower construction sales, weak cement demand as well as divestment of cement capacity continues to hurt the sales of cement division. However the segment revenue of real estate, power and hospitality was up by 99%, 120% and 6% respectively to Rs 148.09 crore, Rs 59.59 crore and Rs 59.58 crore. The segment revenue of others was down by 6% to Rs 41.18 crore.
• EBIT declined by 77% to Rs 139.48 crore and that is largely on account of lower profits at cement, construction and power business. While the segment revenue of real estate was up by 273% to Rs 41.80 crore facilitated by higher sales and 1310 bps expansion in segment margin to 28.2%. The Hospitality business has turned in a segment profit of Rs 5.54 crore compared to a loss of Rs 1.71 crore in the corresponding previous period gained by higher sales and margin improvement. While the segment loss of investment business came down to Rs 0.45 crore compared to a loss of Rs 0.62 crore in the corresponding previous period, the segment loss of others widened to Rs 4.03 crore compared to a loss of Rs 2.54 crore in the corresponding previous period. However the segment profit of cement, construction and power was down by 83% and 84% respectively to Rs 28.83 crore and Rs 67.59 crore hurt by lower sales as well as lower margin. Despite higher sales the segment profit of power was down by 80% to Rs 0.20 crore as its segment profit contract by sharp 340 bps.
• Sharp contraction (by 1320 bps to 12.9%) in operating profit margin was largely on account change in revenue mix as well as unable to recover capacity. The contribution of relatively high margin construction business to top-line declined to 27% from about 39% in the corresponding previous period. But the contribution of cement has increased to 61% from 55% in the corresponding previous period.
• All cost heads have registered sharp rise over corresponding previous period. Construction cost as proportion to sales (net of stocks) was up by 150 bps (to 26%), the material cost was up by 630 bps to 32.4%, the staff and other expenses were up by 120 bps (to 7.6%) and 440 bps (to 21%) respectively. Thus hurt by lower sales and lower margin the operating profit was down by 61% to Rs 309.44 crore.
• Other income was higher by 13% to Rs 12.63 crore. The interest cost was up by 14% (to Rs 899.29 crore) and the depreciation was down by 11% (to Rs 191.80 crore). Thus at PBT level it was a loss of Rs 769.02 crore compare to a loss of Rs 201.30 crore in the corresponding previous period.
• EO was an income of Rs 67.15 crore compared to an expense of Rs 0.43 crore in the corresponding previous period. Thus the loss at PBT (after EO) level stood at Rs 701.87 crore compared to a loss of Rs 201.73 crore in the corresponding previous period. Taxation was a write back of Rs 236.88 crore, a rise of 96%. Thus the loss at PAT level moderated to Rs 464.99 crore compared to a loss of Rs 80.61 crore in the corresponding previous period.

Yearly performance

Standalone sales were lower by 17% to Rs 10854.33 crore but with 510 bps contraction in OPM, the operating profit was lower by 34% to Rs 2133.79 crore. After accounting for lower other income, higher interest and depreciation cost the PBT before EO was a loss of Rs 1861.74 crore compared to a loss of Rs 63.76 crore in the corresponding previous period. EO income was lower by 40% to Rs 243.42 crore. Thus the PBT after EO was a loss of Rs 1618.32 crore compared to a profit of Rs 340.15 crore. Taxation was a write back of Rs 508.55 crore compared to a write back of Rs 73.74 crore in the corresponding previous period. Thus the PAT was a loss of Rs 1109.77 crore compared to a profit of Rs 413.89 crore in the corresponding previous period.

Consolidated sales was down by 1% to Rs 19650 crore but with 90 bps contraction in OPM, the operating profit was down by 4% to Rs 6138.25 crore. Other income though was up by 3% (to Rs 147.70 crore) but hurt by higher interest and depreciation cost it was a loss of Rs 2629.98 crore at PBT compared to a loss of Rs 1284.65 crore in the corresponding previous period. EO income was up by 29% to Rs 529.19 crore and thus the loss at PBT (after EO) moderated to Rs 2100.79 crore compared to a loss of Rs 874.08 crore in the corresponding previous period. After accounting for higher tax write back (up 225% to Rs 557.58 crore) and higher minority interest (up 51% to Rs 183.94 crore) the net profit (after MI) was a loss of Rs 1727.19 crore compared to a loss of Rs 824.84 crore in the corresponding previous period.

Other developments

The Hon'ble High Court of Judicature, Allahabad has on 6th August, 2015 sanctioned the Scheme of Arrangement between the Company and UllraTech Cement Limited [UTCL] for the proposed transfer of two of its Cement Plants with an aggregate grinding capacity of 4.9 Mn TPA and 180 MW Captive Thermal Plants at Bela and Sidhi in Madhya Pradesh to UTCL at an enterprise value of Rs 5325 crore. The Scheme is also subject to sanction by Hon'ble Bombay High Court for which the petition has already been filed by UTCL.

The Scheme for amalgamation of Jaypee Sports International, [wholly owned subsidiary of the Company), with the Company has been approved by the Shareholders and Creditors of the Company at their respective meetings held on June 06, 2015 Necessary Petition has been filed with Hon'ble High Court of Judicature at Allahabad for sanction of the Scheme. Since the appointed date is April 01, 2014, post approval of the Scheme by Hon'ble High Court of Judicature at Allahabad, the figures of the current period and previous financial year will be restated.

Exceptional items during the current quarter represent: a. Profit aggregating to Rs 116.45 crore on transfer of 1.5 MTPA Cement Grinding Unit at Panipat, Haryana to M/s Shree Cement Limited for an overall consideration of Rs 358.22 crore; b. Loss of Rs 49.08 crore on account of charges payable to Madhya Pradesh Poorv Kshetra Vidhyut Vitran Company as per the Order of the Hon'ble Supreme Court of India The charges have been levied on account of termination of HT Agreement for power supply by the Company consequent to the commissioning of a Captive Power Plant at one of the Cement Plant locations.

Equity shares numbering 189316082 held by the four Trusts, of which the Company is the sole beneficiary, have been pledged for securing the loans obtained by the Company.

The stock hovers around Rs 10.90.